Page 10 - LUA November December 2024 Issue for website

COVER STORY

The Kenyan horticultural and flower shipped by sea to the European Union will this is almost impossible for smallholder
sector relies heavily on air freight for increase from the current 5 percent to about farmers. There is a need for consolidated
quick delivery, especially during peak 19 percent by 2030. shipment and this increases the
seasons. However, rising disruptions, Rabobank is a Dutch multinational complexity of quality control. Second,
costs and environmental concerns company that specialises in food and sea freight takes between 28 to 35 days to
are leading to the shift towards sea agriculture financing, sustainability reach Europe. This can increase the risk
freight. The disruptions of the Covid-19 projects, and retail banking services. of quality degradation, especially during
pandemic accelerated this process. On the same line, Griffin Kaiga, peak seasons.”
In fact, ocean freight is offering a Project Officer - Market Insights, Another biggest challenge with sea
better, sustainable, cost-effective, and COLEAD, pointed out that 19 percent freight, very similar to air freight, is
competitive mode of transport for of Europe-destined Kenyan cut roses by the availability of reefer containers. For
perishable exports. 2030 would mean 30 to 35 40-foot reefer instance, Sjoerd H. Visser, who is a former
Even though sea freight is not a viable containers moving from Kenya each Country Director of Djibouti and Director
option right now because of the Houthi week. He was speaking in an October of Infrastructure of the Great Lakes
attacks in the Red Sea and the closure 2024 webinar organised by COLEAD Region for TradeMark Africa, pointed
of the Suez Canal route, a significant titled ‘The Cut Flower Business in Kenya, out the requirement for the shipping lines
amount of Kenyan flowers and East Roses and Summer Flowers’. to bring in empty reefer containers to
African perishables will move through He also noted the need to maintain carry perishables from African countries
sea freight in the long term. In fact, the a hybrid approach of combining both because there are not enough temperature
Kenya Flower Council has set a target to air and sea in flower logistics citing the controlled imports. “Available reefer
have 50 percent of Kenya’s flower export fragility of sea freight exposed by Red containers are often not sufficient through
be done by sea by 2030 from the current Sea disruptions. “Sea freight reduces the natural inflow of the shipping lines.
five percent. transportation cost by 50 percent, has a That means the shipping lines have to
This may seem quite ambitious greater capacity for high volumes and is specifically order empty containers to fill
considering the current challenges, however, environment friendly,” he said. these goods,” he said.
an August 2024 research by Rabobank “However,” he added, “First, large The capacity imbalances in both air
estimates that the share of Kenyan cut roses growers can easily fill up a container, but cargo and shipping are not exclusive for

8 LUA NOVEMBER - DECEMBER 2024