A freight crisis at Nairobi's Jomo Kenyatta International Airport is putting strain on Kenya's flower and fresh produce exports to Europe. Several international carriers – including Qatar Airways, Turkish Airlines, and Magma Aviation – have reportedly scaled back their cargo services to Kenya in favor of more lucrative routes for the festive season. For instance, cargo airlines are earning up to $8 per kg on routes from Asia to the US, compared with only $2.5-$2.8 per kg in Kenya.
This month, Airflo, a freight forwarder of perishable goods between Kenya and the Netherlands, advised its Kenyan clients to reduce deliveries due to limited airline capacity. This shortage has resulted in cargo piling up at Nairobi's airport, with Airflo estimating that recent flight cancellations and delays have removed 300 tonnes from its planned airfreight capacity. Efforts to arrange charter flights have faced challenges as well, with aircraft in short supply due to high demand from Asia. Many international airlines operating in Kenya do not have binding contracts, allowing them the flexibility to cut capacity, leaving local exporters vulnerable.
Security concerns in the Red Sea have exacerbated the situation. Attacks by Yemen's Houthi rebels on container ships passing through the Red Sea have led many shipping companies to reroute around the southern tip of Africa instead of the Suez Canal, adding up to 10 days to voyages and increasing fuel costs by approximately 40%. This rerouting has driven more demand for airfreight as companies look to expedite deliveries. Capacity constraints are also aggravated by high cargo demand from Chinese e-commerce giants Shein and Temu.
In 2023, Kenyan horticultural exports rose by 7%, reaching KES 156.69bn (US$1.20bn), up from KES 147.08 billion (US$1.13bn) in 2022. Flowers alone now account for 47% of Kenya's horticultural exports, with vegetables and fruits making up 32% and 21%, respectively.
The Netherlands was the largest importer of Kenyan horticultural goods (27%), followed by the United Kingdom (14%), France (13%), the United Arab Emirates (6%), Germany (5.1%), and Monaco (4.6%).
To address the crisis, industry experts have suggested that the Kenyan government issue temporary permits for additional freight airlines or consider wet leasing – hiring aircraft with crew, fuel, and insurance on a short-term basis. There is also interest in eventually shifting a larger share of flower exports to ocean freight, which offers lower costs and reduced greenhouse gas emissions. This option, however, hinges on significant infrastructure investments in rail, port facilities, container depots, and improved customs processes for perishables. According to Rabobank, if stability returns to the Red Sea, the proportion of cut roses shipped to Europe by sea could increase from around 5% currently to 19% by 2030.
As Kenya grapples with freight transport challenges, neighboring Ethiopia, Africa's second-largest flower exporter, is investing heavily in its cargo operations through the state-owned Ethiopian Airlines, gaining greater control and reliability over its export capacity. The airline has established an effective cold chain system, maintaining optimal temperatures throughout transport to preserve the quality of perishable goods like flowers. Ethiopia's airfreight rates are roughly half those charged by freight forwarders in Kenya.
Source: Nanyang Technological University