Car imports, trade volumes drop 30% on coronavirus

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Imports on used motor vehicles could drop sharply as the coronavirus spread continues to hit global supply chains.

Imports on used motor vehicles could drop sharply as the coronavirus spread continues to hit global supply chains.

This comes as overall trade through the Port of Mombasa continues to drop with imports dipping by at least 30 per cent in the last one month.

This has been occasioned by reduced orders from key markets of China and India, and stringent measures put in place by ports that have affected vessels turn-around

According to the Shippers Council of Eastern Africa (SCEA), there has been a significant drop on vessels sailing the East Asia route, a key trading route, and dominant sub-region.

This has affected cargo uptake and transit patterns that have impacted volumes coming to Kenya.

“We have fewer ships sailing on this route. With this, the volumes coming to Mombasa have been dropping,” SCEA chief executive Gilbert Langat said yesterday.

Car dealers said though they are yet to evaluate the impact on importation of units, reduced mobility now posses a threat to volumes.

“We expect business to go down. In a week’s time, we will know the effects,” Kenya Auto Bazaar Association chairman John Kipchumba said.

Volumes are expected to go below 8,000 units a month from the current 12,000 units imported mainly from Japan, United Arab Emirates, United Kingdom, Singapore and South Africa.

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