Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
No Result
View All Result
No Result
View All Result
Home Supply Chain Updates

Kenya upbeat on direct cargo flights deal with US

usscmc by usscmc
February 9, 2020
Kenya upbeat on direct cargo flights deal with US
Share on FacebookShare on Twitter

News

Kenya upbeat on direct cargo flights deal with US

Friday, February 7, 2020 12:24


By BRIAN NGUGI

Goods are loaded onto a cargo plane
Goods are loaded onto a cargo plane. Kenya and the US have eased cargo movement between the two countries. FILE PHOTO | NMG 

Kenya is optimistic of improved trade connectivity with the US after the two countries struck a new deal for direct cargo flights between the two nations.

The amendment deal, which adds all-cargo rights to the existing air transport agreement, is expected to offer air carriers greater flexibility to meet customers’ cargo and express delivery needs more efficiently.

It adds seventh-freedom traffic rights for all-cargo operations, meaning cheaper costs and efficiency in cargo movement. The agreement was signed in Washington D.C by US Assistant Secretary of State for Economic and Business Affairs Manisha Singh and Kenya’s Transport Secretary James Macharia.

Mr Macharia said the deal “will facilitate expansion of air freight services by allowing airlines from both countries to set up and operate air cargo hubs in either country”.

Manufacturers welcomed the introduction of direct cargo flights to the US from Kenya, saying they can now explore opportunities to sell flowers directly in America.

advertisement


“Generally we expect to see faster movement of goods and increased penetration of Kenyan products to the US market, particularly flowers which pass through Amsterdam before being dispatched to their destination,” said the Kenya Association of Manufacturers (KAM) in a statement.

Kenya imports capital goods and machinery from the US while some of the products Kenya exports to the US include textiles and apparel. KAM said the direct cargo flights would cut costs.

“Direct cargo flights from US to Kenya will ease logistics for Kenyan importers by cutting down the time it takes to import such goods to the country,” said KAM.


While national carrier Kenya Airways said it would not immediately be able to tap the opportunity due to capacity constraints, the airline said it would work with other carriers to leverage the new opportunities for air freight services arising from the deal.

“KQ does not have big enough cargo aircraft at the moment to be able to fly directly to the US and therefore benefit directly from this agreement,” KQ acting chief executive officer Allan Kilavuka told the Business Daily.

“This arrangement will mainly benefit US carriers with KQ being an incidental beneficiary from interline cargo to smaller African destinations from our hub in Nairobi.”

Trade data released by the Kenya National Bureau of Statistics (KNBS) for the 11 months to November last year showed that the US imported Kenyan goods worth Sh46.4 billion compared to Sh44 billion over a similar period in 2018.

This made the US the second biggest market of Kenyan products behind Uganda (Sh49 billion) in the period to November 2019.

Goods worth Sh55.1 billion travelled the opposite direction in the 11-month period registering a 10.4 percent growth compared to Sh49.9 billion spent on American imports over the same period in 2018.

The new cargo pact is expected to enter into force shortly having been negotiated from last December.

Kenya Airways launched direct flights from Nairobi to New York in October 2018 after being granted security clearance by US authorities.

Former Kenya Flower Council CEO Jane Ngige had earlier said that the direct flights to the US would open a new and lucrative avenue for Kenya cut flowers and horticulture products at large.

“The rights in the Amendment facilitate the movement of goods throughout the world by providing air carriers greater flexibility to meet their cargo and express delivery customers’ needs more efficiently,” said the US State Department in a statement.

“Specifically, the Amendment allows US all-cargo airlines to fly between Kenya and a third nation without needing to stop in the United States, an important right if operating a cargo hub.”

Kenyan all-cargo carriers have reciprocal rights to serve the United States under the deal.

“This Amendment further expands our strong economic and commercial partnership, while creating new opportunities for all-cargo airlines, exporters, and consumers,” said the US.

“It will fully open the Kenyan air cargo services market to US carriers, and represents one way in which the US Government is delivering for US all-cargo carriers and American workers.”

The Jomo Kenyatta International Airport (JKIA) in Nairobi was last year ranked as the second fastest growing airport in world cargo ranking by a global report highlighting top airports for passengers, cargo and aircraft movements.

The World Airport Traffic Report Data for 2018 released by Airports Council International (ACI) ranked JKIA second in the ‘Fastest Growing Airports (Handling over 250,000 metric tonnes of air cargo)’ category.

JKIA handled over 342,000 metric tonnes of air cargo in 2018, a 25 percent growth from 2017.

According to the Kenya Airports Authority (KAA), JKIA air cargo traffic growth has been seen to and from Europe, Asia, America, and most recently China and Australia.

“In the last few years, JKIA has seen the entry of several modern transit sheds, increasing its annual overall cargo to 1.2 million tons,” said KAA earlier.

Mitchell Cotts, a leading cargo and logistics company, is currently also constructing its new shed at JKIA whose completion is expected to inject an additional annual capacity of 150,000 metric tons at the airport.

Astral Aviation, a cargo airline operating from JKIA, has in the last year acquired three Boeing 747-400 cargo aircraft to boost its freight capacity and expand its network.

President Uhuru Kenyatta is currently in the US for an official visit and was expected to meet his host, President Donald Trump, for bilateral talks aimed at deepening trade and investment between the US and Kenya.

usscmc

usscmc

No Result
View All Result

Recent Posts

  • How Hapag Lloyd captured a major market share in the Container Shipping Industry in USA
  • Why USA’s East Coast is the Favorite Destination for Manufacturing Companies
  • How Trade Relations Between the USA and UK Improved After Keir Starmer Became Prime Minister
  • Tips and Tricks for Procurement Managers to Handle Their Supplier Woes
  • The Crazy Supply Chain of Walmart Spanning Across the Globe

Recent Comments

  • Top 5 Supply Chain Certifications that are in high demand | Top 5 Certifications on Top 5 Globally Recognized Supply Chain Certifications
  • 3 Best Procurement Certifications that are most valuable | Procurement Newz on Top 5 Globally Recognized Supply Chain Certifications

Archives

  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • September 2019

Categories

  • Global News
  • Supply Chain Updates

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Antispam
  • Contact Us
  • Disclaimer
  • Home
  • Privacy Policy
  • Terms of Use

© 2025 www.usscmc.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us

© 2025 www.usscmc.com