Red Sea saga trouble hits flower trade
The volume of flowers exported by sea from Kenya has seen a significant decline, dropping from 25 containers per week to just five containers over the past five months due to the Red Sea crisis.
Disruptions along this vital shipping route have severely affected global trade, particularly through the Suez Canal, which serves as the shortest maritime route between Asia and Europe.
Approximately 15 percent of Kenya’s foreign trade volume passes through this canal, making the crisis particularly impactful for the country. Consequently, shipping costs have surged by 40-60 percent, despite Kenya’s preference for sea freight as its primary export route.
Drop in flower volumes
While air freight is considered a faster alternative, it is considerably more expensive and environmentally detrimental, transporting fewer volumes and values compared to sea freight.
Clement Tulezi, CEO of the Kenya Flower Council, highlighted at a meeting yesterday the significant effects of the Red Sea crisis on flower exports, noting longer transit times and increased costs.
“Apart from the drop in export volumes, our flowers are now taking longer to reach their destination. Initially, sea freight used to take 25 days, but now it is taking about 32 days. This definitely has an impact on the flowers’ cost,” he said.
The soaring expenses are attributed to shipping companies redirecting vessels around the Cape of Good Hope, resulting in extended delivery times by at least 10 days on average. This has posed challenges, particularly for companies with limited inventories.
Tulezi expressed hope for a swift resolution to the crisis to restore normal shipping routes. He emphasized Kenya’s goal to transition all flower transportation to sea freight by 2030, provided the crisis is resolved.
“We want to ensure that by 2030, all of our flowers are transported by sea, and if this crisis is solved, we will be able to go back and start moving more volumes through the sea,” he said.
Although Kenya had initially shifted towards sea transportation for cut flowers last year to reduce costs and explore new markets, the crisis has led to a resurgence in air freight usage among exporters.
This complicates Kenya’s ambition to have 50 percent of flowers transported by sea by 2030, given the current challenges.
Despite these hurdles, Tulezi remains optimistic, believing that once the crisis is resolved, Kenya can resume moving larger volumes of flowers by sea, aligning with the country’s long-term goals for maritime transportation. He emphasized the potential for sea freight as a significant mode of transport for Kenya in the future.
