The flower export industry in Kenya has been hit hard by the ongoing Red Sea crisis, with a significant drop in volumes shipped by sea over the past five months. From 25 containers per week, the numbers have plummeted to just five containers, highlighting the severity of the situation.
The disruptions along the Red Sea route have sent shockwaves through global trade, particularly affecting the vital Suez Canal, which serves as the shortest maritime path connecting Asia and Europe. Kenya, heavily reliant on this canal for approximately 15 percent of its foreign trade volume, is feeling the repercussions acutely. Shipping costs have surged by 40-60 percent, despite Kenya’s historical preference for sea freight as the primary export route.
While air freight presents itself as a faster alternative, it comes at a significantly higher cost and with environmental implications. Clement Tulezi, CEO of the Kenya Flower Council, underscored the adverse effects of the Red Sea crisis on flower exports during a recent meeting. He pointed out longer transit times and increased costs as major concerns.
“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,” Tulezi stated.
The surge in expenses can be attributed to shipping companies rerouting vessels around the Cape of Good Hope, resulting in extended delivery times by at least 10 days on average. This has posed challenges, especially for companies with limited inventories.
Despite the challenges, Tulezi expressed optimism for a prompt resolution to the crisis to restore normal shipping routes. He reiterated Kenya’s ambition to transition all flower transportation to sea freight by 2030, contingent upon the resolution of the crisis.
“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,” Tulezi affirmed.
While Kenya had previously shifted towards sea transportation for cut flowers to reduce costs and explore new markets, the crisis has led to a resurgence in air freight usage among exporters. This poses a challenge to Kenya’s goal of having 50 percent of flowers transported by sea by 2030.
Despite the current hurdles, Tulezi remains hopeful, 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.
