Page 16 - STAT November 2022 for Magzter

SPECIAL REPORT

Key Opportunities

Spreading of logistics Sea freight also has its problems, but it is an interesting option to spread logistical
risks risks.
A few interviewees with experience in sea freight indicated that sea freight can
Better product quality theoretically be planned well and the result is a better quality than air freight because
of less temperature fluctuations.
Being ready for
upcoming sustainability Most expect that in the coming years there will be increasing pressure from national
and European regulations that will require a more sustainable floriculture trade. Sea
and carbon footprint freight seems to offer an alternative to respond to this trend.
requirements
Source: Embassy of the Kingdom of the Netherlands
30 per cent, some of the companies who according to the report, seems partly a
supply retail chains believe that a shift chicken and egg situation. The industry
towards sea freight of at least 50 per cent is hesitant because customers don't ask
of the total volume will take place within for it. On the other hand, retail customers
five years. and consumers don’t ask for it because the
A small minority of the interviewees sector is not yet ready.
indicated that they currently have no One of the interesting lessons from this
immediate plans to start with sea freight. survey is the observation that the recently
Most of them say that they are following increased interest in sea freight has mainly
developments with interest. Some expect arisen from the problems in air freight.
more questions from customers in the With this in mind, it can be concluded that
future, especially related to making one of the most effective ways to stimulate
transport more sustainable. the development of sea freight is by
Products arriving irregularly and at discouraging air freight. As more and more
unpredictable times also present a major governments are serious about reducing
challenge for importers who need to CO2 emissions and making trade policies
schedule the unpacking of the flowers. It is more sustainable, we can expect this to
necessary to build in a safety margin. Sea happen anyway.
freight also entails a great need to be able The main role of governments on
to store product. This means high costs Kenyan and European side is to ensure
and in many cases importers do not yet that the business environment is optimally
have the required cooling facilities. in favour of sea freight. Most expect equipped and facilitates the development
In the past, the promised lower cost for that in the coming years there will be of sea freight and floriculture in a broader
transport by sea was always mentioned increasing pressure from national and sense. III. Establishing best practices.
as the main reason. However, that is no European regulations that will require There is a need for development and
longer the case. The cost advantage is a more sustainable floriculture trade. integration of sea freight procedures
less evident. There are more important Many cite the European Green Deal as an in common business processes. There
reasons for the interest in sea freight, such example of where regulation will go in the is a role for government or sector
as the logistical challenges in aviation and coming years. organization in formulating and sharing
periodic lack of air freight capacity. Will shippers explore a mix of air and best practices. The level of knowledge
Respondents also indicated that sea ocean freight to ship their produce in the about sea freight and readiness among
freight can theoretically be planned well mid to long term? Most traders indicated growers and traders should improve.
and the result is a better quality than that they will always opt for a combination Knowledge about the requirements and
air freight because of less temperature of sea freight and air freight. Depending possibilities of sea freight should become
fluctuations. If properly executed, sea fully on only one of the two will fail. It is more commonplace, particularly among
freight provides fewer degree hours and too risky and not profitable enough (in those companies that have not yet gained
fewer moments of stress to the product. case of air freight only) and the logistics practical experience.
According to them, flowers that are are not reliable enough (especially in It is simply a must for Kenya in
correctly transported by sea are ultimately case of sea freight only). The continued the long run to offer products with a
of better quality and have a longer shelf life problems due to delays will remain a major favourable carbon footprint. Otherwise,
throughout the entire chain. issue for the time being in order to be able Kenya will increasingly lose out in the
Sustainability and carbon footprint to switch completely to sea freight. European market to regionally grown
requirements are increasingly becoming Although sea freight interest is picking products or other suppliers that have a
a key factor that makes shippers’ decision up again, it is still not mainstream. This, lower carbon footprint.

14 LUA NOVEMBER - DECEMBER 2022