Battle: Dar es Salaam vs Nairobi

Battle: Dar es Salaam vs Nairobi

Cargo airlines leave Kenya fresh produce exporters stranded​



SUNDAY OCTOBER 06 2024​

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Several international airlines have withdrawn their cargo services from Nairobi's Jomo Kenyatta International Airport in search of "better pay" in other markets. File| Nation Media Group
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By JAMES ANYANZWA
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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 ($1.21 billion) in export earnings in 2023, according to data from the Agriculture and Food Authority (AFA).

Read: Kenya horticulture exports rise to 29-month high on demand

The Shippers Council of Eastern Africa (SCEA), a private sector membership organisation 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.

Wet leasing is paying to use an aircraft with crew, fuel and insurance for a short period. “The situation at the JKIA is worse this week. We are over 800 tonnes less than the same week last year,” said Agayo Ogambi, SCEA CEO. “This results in delayed delivery, loss of markets, and affects the shelf life of the products, resulting in huge losses. We are asking the government to consider temporary approval of freighters to fill the gap.”

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The EastAfrican has reliably learnt that 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.

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 $2.3 per kilogramme to between $3.57 and $3.6 per kilogramme.

Higher demand​

“Yes, it is true Qatar and Turkish Airlines have withdrawn freight services on some routes. I think it has to do with pricing. You know, we are entering the peak season, and some alternative routes could be paying better than us (Kenya),” a clearing agent at the airport who requested not to be named said.

The management of Qatar and Turkish cargo airlines did not respond to emailed questions at the time of going to the press.

“Thank you for contacting Qatar Airways Cargo. We have received your enquiry and one of our representatives will contact you shortly,” said Qatar Airways Cargo.

Calls and text messages to the cellphone of Kenya’s Principal Secretary for Agriculture Paul Rono went unanswered. According to the SCEA, foreign cargo airlines have been enticed by relatively “better” pay for their services in other global jurisdictions because of the increasing activities ahead of the festive season.

For instance, from Asia to the US, these cargo airlines are getting up to $8 per kilogramme, compared with Kenya, where they are getting $2.5-$2.8 per kilogramme “There is higher demand and higher pay for their services in other global markets.

"The other reason is that they don’t have a binding agreement to serve Kenya. Most of them are bilateral agreements, which do not bind them to operate here, and so they can leave at their own will. This is a contractual challenge,” Mr Ogambi said.

Global share of exports​

The logistics crisis facing the fresh produce earmarked for airlifting to the European market through the JKIA has increased the cargo rollovers by 200-300 tonnes, according to the SCEA.

Kenya's economy is firmly rooted in agriculture, with horticulture becoming one of the country's main sources of foreign income by exporting flowers to more than 60 countries.

Kenya’s global share of exports of fruits and vegetables stood at 12 per cent and six percent in 2023 respectively.

Read: Kenya avocado exports to China hit $64m in three months to May

Kenya’s share of global fruit and vegetable production was 0.5 per cent and 0.3 percent respectively in the same period according to data from AFA.

The major fruits produced in 2023 were bananas (34 per cent), avocado (23 percent), mangoes (16 per cent), oranges (5.8 per cent), and watermelon (five percent). Others were pawpaw, pineapple and lime.

The top fruit exports in 2023 were avocado, pineapples, mangoes, apples, oranges and raspberries.

Vegetables produced in the period were tomatoes, cabbages, kales, garden peas, bulb, onions, spinach and French beans.


kila mtu anakimbia kenya
 
buffalo44 said:
Acha kujichekesha. Leta Credible sources msisahau huyo mlikua mnamtumia kuleta Shule Mbaya Tanzania nyingine wanachanganya majina.

Nikawaprove otherwise.

Leta Credible sources kuwa Magufuli alikua Nairobi Hospital?

Me nina CDF na Vice President (Kipindi anatangaza kifo chake).
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Mimi nimeongelea chuki. Wewe umerudi kwa Nairobi hospital. Huo mjadala sipo maanake tulishaawambia tangu mwanzo Hadi mlikana tulipowaambia amekufa.

Likija kwa chuki, hilo lilikuwa wazi hata wengi wenu humu mmelisema na mlipenda alivyoichukia Kenya.😉
 
Nicxie said:
Hata mimi nashangaa mbona nimefanya hivyo. Ningemuuliza ya kinyamwezi hapo ningepata jibu ila hapa naona nikipigia mbuzi guitar
Click to expand...
Sasa tatizo lako ni nini? Kuna project yoyote huko Kenya? Maana siku hizi mnapiga porojo tu. Tupe progress ya SGR yenu.
 
Teargas said:
I like the competition going on in Kenyan bus building industry. Nobody wants to accept defeat.

Master
Banbros
LSHS
Choda
Jororok
Identity
KVM
AVA
KFC


Hawa wote are building beautiful buses everyday.

Today Banbros has answered the Futura version for Master with this one😍😍

View attachment 3116565
View attachment 3116564
View attachment 3116566
View attachment 3116567


Here is what Banbros was trying to answer from Master Fabricator, Futura F1 for Dreamline.

View attachment 3116573
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Click to expand...
Screenshot_20241006_142055.jpg

Wazee kuicolonize TZ hata chakula kinawashinda
 
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