Page 15 - STAT November 2022 for Magzter
P. 15

interest in sea freight for flower
                                                                             transport stems from the fact that air
                                                                             freight capacity was becoming very
                                                                             scarce through the pandemic.
                                                                                In the past ten years a lot of knowledge
                                                                             has been gained and that there is now a
                                                                             general feeling that most of the practical
                                                                             requirements of sea freight have been
                                                                             mapped out and that people more or less
                                                                             know what is needed to properly prepare
                                                                             and execute a sea freight shipment. A few
                                                                             interviewees with experience in sea freight
                                                                             indicated that sea freight can theoretically
                                                                             be planned well and the result is a better
                                                                             quality than air freight because of less
                                                                             temperature fluctuations.
                                                                                While there is high optimism among
                                                                             industry stakeholders about the potential
                                                                             benefits of ocean freight there are a
                                                                             number of practical and commercial
                                                                             concerns. The biggest one relates to
                                                                             logistics such as the relatively low arrival
                                                                             frequency and irregular and unpredictable
                                                                             arrival times. Other concerns relate more
                                                                             to commercial considerations such as a
                                                                             strong 'day fresh' culture in the flower
                                                                             trade and demand for flexibility.
                                                                                Kenyan shippers expect that the
                                                                             overall share of sea freight of flowers from
                                                                             Kenya reaches 25 to 50 per cent in five
                                                                             years. While traders in the florist channel
                                                                             estimated a range from 0 to a maximum of

          Main Concerns

                                       One of the biggest challenges of ocean freight, according to importers, is the
          Low arrival frequency
                                       relatively low arrival frequency of ocean freight shipments.
                                       Products arriving irregularly and at unpredictable times present a major challenge.
          Risk of delays
                                       Some mentioned the increased risk of delays due to stopovers in the Middle East.
          Required cold store          Sea freight entails a great need to be able to store product. This means high costs
          facilities                   and in many cases importers do not yet have the required cooling facilities

                                       Particularly in the florist channel, traders remain cautious about the possibilities of
          Culture of ‘day fresh’
                                       sea freight. There is a strong 'day fresh' culture in the flower trade.
                                       Customers demand flexibility, especially in the florist channel. There is a generally
          Demand for flexibility       demand for smaller and last-minute orders and European wholesalers tend to
                                       move along with daily market sentiment.
                                       Sea freight requires adjustments in the range of flowers grown in East Africa. Most
          Assortment fit for sea       interviewees do not see that breeders are marketing new varieties specifically for
          freight                      their sea freight attributes. Also, if sea freight takes off, it would narrow the range
                                       of products. This is not in line with the wishes of the florist segment.
          Adjusting business           A further concern is how to develop and integrate sea freight procedures in
          processes                    common business processes.
                                       There is a great dependence on the efforts of the grower for sea freight to work.
          Need for support to growers Several importers and traders stated the need for coordination, support and
                                       monitoring, particularly in case of growers that are new to sea freight logistics.
           Source: Embassy of the Kingdom of the Netherlands
          NOVEMBER - DECEMBER 2022                                                                         LUA 13
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