Developments, Achievements, Challenges, and Current Situation
The expansion of sea exports for Kenya’s flower exporters has gained momentum, despite encountering significant obstacles due to the Red Sea crisis over the last three years. This insight was shared by Mr. Isaya Muiru of Flowerwatch
during an industry and stakeholder meeting at a hotel in Nairobi. Although the initiative commenced as early as 2004, Oserian Development Company only succeeded in shipping fewer than 250 containers in the initial two years, leading to a slow start. This was primarily attributed to the availability and prevalence of airfreight.
Shipping Costs for Reefer Containers, time and Quality
The costs, which include the container fee, sea freight, and post-harvest treatment, average around $16,000 per reefer container, which is about $1.78 per kg. This is based on the assumption that the reefer container holds wholesale roses measuring 40-50-60 cm. A reefer container filled with retail roses of 40-50 cm will incur a cost of $18,500 per reefer container, translating to $2.05 per kg. The post-harvest costs vary depending on the number of stems in the container.
In the worst case scenario the average transit time from Mombasa to Rotterdam is 28 days, with a cost of approximately $2.13 per kg, in contrast to about $2.80 per kg for air freight. The vase life of flowers transported by sea is similar to that of those sent by air.
Covid, the Game Changer
Before the onset of Covid, sea freight was relatively expensive and had limited availability. However, the pandemic led to a scarcity and increased costs of airfreight. Prior to Covid, the volumes exported ranged from 50 to 100 containers each year. At the same time, exporters also encountered challenges related to reducing their carbon footprint, which made sea freight a more attractive option.
This saw around 900 containers of flower products shipped in 2023, with each container averaging 9,000 kg. This accounted for an estimated 5-8% of the total volume of Kenyan flower products.
Red Sea Shipping Challenges.
In 2024, the anticipated volume of flowers transported by sea was expected to double, but this did not happen. Since February 2024, the ongoing crises in the Red Sea have effectively stopped almost all maritime shipments of cut flowers. The immediate impact of these crises has been an increase in shipping costs, estimated between $1,500 and $3,000 per reefer container, along with longer sailing times for exports from Mombasa to Rotterdam, with the best-case scenario being 36 days, though realistically it is longer. It is clear that schedule reliability is far from ideal, and any delays increase the risk of customer cancellation. The extended journey times make the continuation of sea flower shipments highly risk.
The crises in the Red Sea began in mid-December 2023, coinciding with the flower industry’s preparations for sea freight shipments for Valentine’s Day in 2024 (February 14th). This crisis led to the rerouting or delay of 25-35 containers and halted the shipment of potentially up to 50 containers around Christmas.
Containers with flowers out of Colombia
Table 1 Containers shipped from Colombia
| Country | 2019 TEUs | 2020 TUEs | Change year on year | Proportion |
| UK | 1600 | 1786 | +12% | 40% |
| USA | 1505 | 1217 | -19% | 27% |
| Chile | 954 | 570 | -40% | 13% |
| Spain | 223 | 372 | +67% | 8% |
| Japan | 146 | 207 | +42% | 5% |
| Australia | 121 | 137 | +39% | 3% |
| Other markets | 145 | 202 | +39% | 5% |
| Country | Reefers per year | Relative costs |
| Kenya | 10,000 | 100% |
| South Africa | 100,000 | 75% |
| Colombia | 500.000 | 50% |
Conlusion
Despite Kenya and Ethiopia being well-positioned for agricultural exports by sea, we are behind in volumes and must acknowledge that other countries are larger and benefit from economies of scale. For long-term success, both Kenya and Ethiopia need to increase their volumes to stay competitive.