Business

Sea freight to massively cut avocado and other fresh export costs

Tuesday, July 2nd, 2024 00:30 | By
Avocadoes packed into a crate. Image used for representation purposes only. PHOTO/Pexels
Avocadoes packed into a crate. Image used for representation purposes only. PHOTO/Pexels

Your company has been in the avocado export business for quite some time now, which mode of transport do you use and why?

We use sea freight exclusively because it allows us to export bulk products efficiently, something that is not achievable with airfreight. Unlike airfreight, sea freight can accommodate large volumes of goods at a significantly lower cost, making it the ideal mode of transport for our needs. Additionally, sea freight provides greater flexibility in handling oversized or heavy items, ensuring that our bulk shipments are transported safely and securely. This approach not only optimises our logistics, but also supports our commitment to delivering high-quality products to our customers worldwide.

How do you ensure that the avocados remain fresh during the long sea voyage?

We ensure that all our fruits are harvested at the right maturity to maintain their freshness and quality. We treat all fruits with ozonated water and food-grade fungicide before packaging to eliminate pathogens and fungi. Once packaged, we implement proper cold chain management from the farm pack house to our containers. Maintaining optimal temperatures throughout the transportation process is crucial for preventing spoilage and extending the shelf life of our products. By harvesting fruits at the right maturity, we guarantee peak flavour and nutritional value, offering our customers the best possible produce.

On matters quality control, what do you do to monitor quality of your products?

We have a quality control room that helps us track the quality. For every shipment done, we usually set aside some fruits samples for quality control. These samples encompass both ambient and simulated conditions. We use the samples to continuously monitor and assess the freshness and condition of our produce throughout the entire shipping journey.

What do you think about Kenya’s plan to shift 50 per cent of its fresh produce exports from air to sea freight by 2030?

This is a strategic move that will ensure that as a country we will be able to export more at a lower cost. The reason is sea freight is generally more cost-effective than airfreight, especially for bulky and heavy shipments, such as fresh produce. This will significantly reduce transportation costs for exporters, making Kenyan produce more competitive in the global market.

Apart from that, by leveraging sea freight, Kenya will access more distant markets that may not be feasible or cost-effective to reach by air. This will help diversify export destinations and reduce reliance on a few key markets.

Why is this transition important?

Kenya’s transition from air freight to sea freight represents both an environmental decision and a strategic economic advantage in securing its fresh produce exports, especially as UK and European supermarkets prioritise reducing their carbon footprint. According to TradeMark data, airfreight from Kenya to Europe produces significantly higher greenhouse gases compared to sea freight—where one kilogramme of air-freighted green beans can emit as much as 177kg of sea-freighted green beans. This shift not only aligns with global sustainability goals, but also enhances the competitiveness of Kenyan exports in international markets.

Do you think that as a country we have the capacity needed for this transition?

Yes, the capacity is there, but there needs to be an upgrade of facilities, such as Kenya Ports, to handle larger number of shipping units required for the transition. Since these units are non-standard and require electricity for operation, ports must ensure adequate plugging points upon their arrival to maintain continuous refrigeration throughout the journey. Therefore, upgrading key facilities, such as ports, will be essential for our country to effectively manage this transition.

Any anticipated impact expected from this transition?

Potential impact include delays at our ports. With more companies shifting from air freight to sea freight and increased volumes passing through maritime channels, it is likely that our ports will experience heightened traffic and processing times. This may necessitate adjustments in logistics planning and infrastructure enhancements to mitigate delays and ensure efficient handling of the increased cargo flow.

Do we have a plan that is guiding the country towards this transition?

Though not yet ready, TradeMark Africa, in partnership with the Government of Kenya, under the European Union-funded Business Environment and Export Enhancement Programme (BEEEP) are developing a comprehensive guide titled The Air to Sea Freight Master plan to optimise logistics and supply chain processes. The master plan will highlight several interventions, including sensitisation, infrastructure development, and policy changes, which when delivered as envisioned, could significantly reduce the cost of sea freight for fresh produce exports, while increasing the quality of the produce. Moreover, the master plan is expected to support the realisation of the Economic Partnership Agreement (EPA) between the European Union and Kenya.

Finally, what are the key benefits of exporting products via sea compared to air?

The major benefit is cost-effectiveness. Sea freight is significantly cheaper than air freight, especially for bulk shipments. The cost per unit of weight or volume is much lower, making it an economical choice for large quantities of goods. Sea freight can also handle very large volumes of cargo, including oversized and heavy items that might be impractical or impossible to transport by air. This makes it ideal for exporting bulk products. Additionally, there is flexibility of shipping options since sea freight provides various shipping options, such as Full Container Load (FCL) and Less than Container Load (LCL), allowing businesses to choose the most efficient and cost-effective method for their shipment size. On matters carbon footprint, sea freight generally has a lower carbon footprint per ton-kilometre compared to air freight, making it a more environmentally friendly option.

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