Home East Africa Fresh Fruits and Vegetables in Kenya to Face Massive Loss Due to...

Fresh Fruits and Vegetables in Kenya to Face Massive Loss Due to Withdrawal of Foreign Airlines

1
Fresh Fruits and Vegetables in Kenya to Face Massive Loss Due to Withdrawal of Foreign Airlines

(3 Minutes Read)

The Shippers Council of Eastern Africa (SCEA), a private sector membership organization representing the interests of importers and exporters, confirmed the logistics crisis at the airport affecting fresh produce destined for export to the European market and urged the government to act swiftly to alleviate the crisis by allowing temporary permits for freighters to fill the gap, currently estimated at 800 tonnes, and to consider wet leasing of cargo airlines.

Kenya’s fresh produce sub-sector is staring at massive losses at the onset of the peak season, as several international airlines withdraw their freight services from the Jomo Kenyatta International Airport (JKIA) for “better pay” in other markets ahead of the festive season and lack of a binding agreement for the airlines to serve the local market.

The situation inflicting the horticultural sector has been compounded by the Red Sea crisis, which has increased the cost of transit through the Egyptian waterway, Suez Canal, by $200 per refrigerated (reef) container, and prolonged the transit period by 10 days as vessels take the longer route through the Cape of Good Hope in South Africa to Europe.

The horticultural sector generated KSh157 billion (USD 1.21 billion) in export earnings in 2023, according to data from the Agriculture and Food Authority (AFA).

The Shippers Council of Eastern Africa (SCEA), a private sector membership organization representing the interests of importers and exporters, confirmed the logistics crisis at the airport affecting fresh produce destined for export to the European market and urged the government to act swiftly to alleviate the crisis by allowing temporary permits for freighters to fill the gap, currently estimated at 800 tonnes, and to consider wet leasing of cargo airlines.

 Key international cargo airlines such as Qatar, Turkish, and Magma Aviation, have removed some of their freighters, with CargoluxAirlines International SA, a flag carrier cargo airline of Luxembourg, expected to join the fray on October 4.

Read Also:

https://trendsnafrica.com/ruto-visits-car-promises-help-to-modernize-agriculture/

Sources said Qatar Airways removed two freighters carrying flowers from Nairobi to Liege, Belgium, resulting in a 200-tonne drop in capacity, while Turkish Airlines removed one freighter per week from Nairobi to Maastricht, Netherlands, affecting flowers and leading to a further 100 tonnes decline.The reduced capacity has translated into increased airfreight costs from USD 2.3 per kilogram to between USD 3.57 and USD 3.6 per kilogram.