Kenyan flower exporters urge airlines to increase cargo capacity

Published October 11, 2024

KENYA – Kenyan flower exporters are urging airlines to address what they describe as a “critical” shortage of air cargo capacity, which is putting the industry under significant pressure.

Rising costs and logistical challenges have exacerbated the situation, affecting both exporters and farmers.

Airfreight capacity from Africa to Europe has seen a notable drop in recent weeks. According to Rotate’s capacity database, the first week of October showed an 8% year-on-year decline in capacity, with airfreight out of Nairobi down by nearly 12%. This decline has led to a sharp increase in freight rates.

“The rates for this winter season have increased substantially from Kenya,” said Willum Van den Hoogen, Managing Director of Florius International. “We’ve observed a 15% rise in rates compared to the previous winter season. Compared to Ethiopia, the rates from Kenya are now 80% higher into the Benelux.”

Van den Hoogen explained that the drop in available cargo space was partly due to the growing demand for East-West e-commerce shipments and alternative sea-air routes, both driven by the ongoing Middle East crisis.

“This could become critical, especially during slower market periods or for heavier and bulkier flower shipments,” he added.

The reduced cargo capacity isn’t only affecting the flower industry. Other perishable goods from East Africa, such as fruits and vegetables, have also been impacted.

Many of these products, which would usually be shipped via refrigerated containers, now rely on airfreight due to disruptions in shipping routes, particularly through the Suez Canal.

“If Kenya experiences dry and sunny weather during the winter and spring, the demand for airfreight could surge even higher,” Van den Hoogen warned.

Last year’s flower production was significantly affected by poor weather, but good weather this season could place further strain on the limited airfreight capacity.

Despite reports of reduced capacity, many airlines have defended their service levels. Lufthansa Cargo stated that it has not decreased the number of flights to Kenya.

In fact, the airline has increased services to Nairobi through its Brussels Airlines passenger flights and added freighter routes to India and China to cater to the booming e-commerce market.

A Lufthansa Cargo spokesperson noted, “We’ve increased freighter frequencies to other destinations but have maintained a strong focus on Kenya. Our customers benefit from direct transportation within our global network.”

Qatar Airways Cargo, which operates three weekly freighters to Kenya, has not reduced capacity but now routes flights through Doha instead of directly to Liege, a less popular option for perishable shippers who prefer direct routes.

Despite these challenges, Kenya’s flower exports have shown impressive growth in 2024. In the first eight months of the year, Kenya exported 200,000 metric tons of flowers, with projections suggesting this could reach 250,000 metric tons by the end of the year.

The floriculture sector remains a significant contributor to Kenya’s economy, generating approximately 107 billion Kenyan shillings (about USD 829.6 million) in 2023.

The European Union remains the primary market for Kenyan flowers, absorbing 70% of the country’s exports. Other key markets include Japan, China, and Australia.

Several players in the industry continue to prioritize Kenyan horticulture despite logistical difficulties. Andy Leslie, chairman of Network Aviation Group, emphasized the company’s long-standing support for Kenyan farmers.

“For nearly 40 years, we’ve prioritized Kenyan horticulture, and even during challenging times like COVID, we maintained our services,” Leslie said.

While some airlines, such as Magma Aviation, have temporarily reduced flights due to fleet limitations, their commitment to Kenya remains strong.

James Gilliard, head of commercial at Magma, stated, “Magma highly values the Kenyan market and plans to restore the fourth weekly flight once our fleet expands.”