In Kenya, perishable exports have taken a huge loss following last-minute flight cancellations. OF course, the whole world is grappling with the Covid-19 pandemic that continues to snuff out lives across the globe. The disease has also paralysed trade and businesses, pushing economies to the brink of collapse and crashing stock markets globally.
The transport and logistics sector is a major victim of Covid-19. The industry facilitates cargo movement to different geographical locations, supports key economic sectors such as manufacturing, agriculture, aid and relief, construction and education, among others. However, Covid-19 has made it extremely challenging to move goods, affecting trade between regions.
According to the International Air Transport Association (IATA), the aviation sector supports 6.2 million jobs in Africa or 2.6 per cent of Africa’s GDP. However, since January 2020 over 185,000 pax have cancelled flights and vital cargo capacity disappeared. This has a negatively affected the air freight sector whose goods primarily comprise pharmaceuticals, chemicals, flowers, vegetables and fruits.
Flower exports to key markets such as the European Union (EU) have dropped by over 50 per cent due to the financial crisis caused by the Covid-19. The Dutch auction has been operating below capacity, making some farms to suspend shipping of flowers.