Rabobank expects that Kenyan cut rose exports to Europe will be increasingly transported over sea

Assuming that shipping in the Red Sea normalizes , Rabobank expect that Kenyan cut rose export to Europe will be increasingly transported over sea . As tell in their report card , which is titled’Kenyan bring down blush wine recoil for EU marketplace shifting to ocean freight rate : A 2030 mind-set ' .

The account which was publishedearlier this monthis write by Lambert van Horen , Senior Analyst - Fresh Produce at Rabobank , and Maximilian Schmidt , intern at Rabobank .

The full report is entirely available for Rabobank node , but we get permission to read the report so that we can provide you with a summary .

The authors of the write up estimate that the percentage of sea - freight cut efflorescence exportation to EU member states and the UK will approximate 19 % in 2030 . This turn devolve short of the butt arrange by the Kenyan flower industry which aim to pass a share of 50 % in 2030 .

drive forcesAccording to the report , ocean freight came into horizon because the Covid-19 pandemic put pressure on zephyr traffic . This shift from airfreight to sea freight was further propelled by European sustainability ordinance , the borrowing of environmental animal foot printing and benchmarking by the prime industry , toll savings in sea freight , as well as technical advancements in farm and post - harvest direction .

European governments , non - governmental organizations , lobbying groups , as well as enfranchisement schema and sourcing criteria increasingly urge producers and bargainer to adopt measure that make them comply with the latest sustainability regulation and criterion .

Moreover , it is mentioned that ocean freight is poise to partially replace airfreight thanks to its potency to save on freight price while also reducing greenhouse gas emissions . Rabobank points out that the acceptation of sustainable aviation fuels would have a negative effect on Kenya ’s competitiveness , as it would come along with increased melody freight rate .

In summation , the uncertainty regarding landing place rightfield at Amsterdam Airport Schiphol is another factor that may limit Kenya ’s capacity to export to Europe . Furthermore , sea freight will presumptively become more viable , and reliable as a solution of research and innovation in this field .

Differences across regions and market place channelsThe report further emphasise that the pace at which export countries shift to sea payload disagree across region . Influenced by factor such as geographic feature article , airfreight rates , and general market side .

According to the report , up to 2023 , with child Kenyan growers that supply to European liberal - box retailers will have the most bonus to sea freight flowers to Europe . Namely , they tend to furnish European orotund big - box retailers and thus operate in a line environs that is qualify by competitiveness and saving of musical scale .

Ethiopian , Ecuadorian , and Colombian growers presently have few incentives to adopt sea freight flower transfer to Europe . Ethiopia , for illustration , is landlocked and is comparatively more competitive in airfreight , at least in the medium term . Sea cargo is less attractive for Ecuadorian and Colombian growers because of the multifariousness of cultivars and varieties they arise , and the fact that they have to allot with last - minute orders .

Nevertheless , the source put forward that it necessitate a supply chain - wide effort to overcome these roadblock . Throughout the Ernst Boris Chain , they still observe work procedures and style of thinking that do n’t align with big scale ocean freight export . The wider adoption of ocean freight is further foreclose by long and unpredictable transit , a lack of knowledge , as well as sound and fiscal jeopardy .

The written report also compares the potential of ocean freight in unlike market channels . They conclude that for the medium term , exporting cut - roses by sea has the most possible for big - corner marketplace channels since they bond more value to sustainability than e - commerce and florist channels , respectively .

Other dubiousness and a new balanceThe report card also pull attention to some of the questions that the expected increase in sea freightage will leaven . Think of questions link to quality control , packing at the source , track times , likely transit risks , and fight .

harmonise to the last chapter of the article , we can expect a new equilibrium in the international transportation of cut rose and cut flower in oecumenical , with a conduct role for large farm and traders .

The full write up can be accessed via the Rabobank site