KENYA – The fresh produce sector in Kenya is counting export losses running into millions as more freighters continue withdrawing services in favour other routes in China and the USA offering relatively better returns.
According to industry players, the situation which begun in early October has worsened. Exporters have lamented that the logistics crisis destined for European markets has been excessive roll-overs of between 200 tonnes – 300 tonnes per day.
The few available airlines, have increased prices from $2.30 (Sh297) per kilogramme to between US$3.57 (Sh461) and US$3.6 (Sh 465) per kilogramme. The cheapest remains Kenya Airways, which is charging US$2.30 but has limited capacity, exporters said.
Magma Aviation is reported to have withdrawn their Wednesday freighter that carries vegetables and flowers to Brussels creating a 100 tonnes capacity gap.
Cargo Lux is mulling the cutting down of frequency on the Nairobi-Amsterdam route that it ships flowers and vegetables, predicted to affect at least 100 tonnes of exports.
Airflo has on the other hand called for reduction on volumes delivered for exports as it removes 300 tonnes from its airfreight capacity.
The Shippers Council of Eastern Africa (SCEA) has explained that the withdrawal of freighters is an annual trend witnessed during the peak festive season as airlines make a kill from moving Christmas orders.
The shipper’s council has since called on the Kenyan government to allow other providers to bridge the resultant gaps, issue temporary landing rights to willing freighters while ensuring that chartered flights reserve 30 per cent capacity for locals.
The situation is dire,” SCEA chief executive Agayo Ogambi said, adding that the government should also interest local operators to operate limitless wet leases, which is getting traction in the USA and UK and more appealing than ownership and dry leasing.
The council also proposes the landing of ferry flights which are essentially planes flying over the Kenyan airspace, to be allowed to land and pick perishables.
The Red Sea tensions, which have increased both the cost and time required to transport cargo to the European Union, has exacerbate the situation.
Small-scale producers, especially those exporting avocados, have been hit hard by the crisis, facing reduced demand and revenue due to the loss of the European market, which previously accounted for 70 percent of Kenyan fruit exports.
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