[HTML payload içeriği buraya]
spot_img

Kenyan Fresh Produce Exporters Call for Resolution of Red Sea Crisis as Shipping Costs Soar

Date:

NAIROBI, Kenya- Kenyan fresh produce exporters are facing significant disruptions, urging for swift resolution of the Red Sea tensions that have drastically increased the cost and time required to transport goods to the European Union. 

The geopolitical crisis has not only delayed shipments but also eroded profit margins, forcing exporters to explore alternative markets and shipping routes.

At the recent Kenya-EU Economic Partnership Agreement (EPA) forum in Nairobi, Hosea Machuki, CEO of the Fresh Produce Exporters Association of Kenya, highlighted the challenges the sector is grappling with. 

According to Machuki, exporters from Kenya and Tanzania have been forced to adopt drastic measures to keep their businesses afloat, such as seeking alternative markets in regions like India, China, and Gulf Cooperation Council (GCC) countries.

“The situation has pushed us to budget-conscious markets, some with difficult payment terms, particularly for smaller exporters,” Machuki explained. 

The Red Sea tensions have doubled the transit time to key European markets, impacting the quality of perishable goods and creating logistical headaches.

The ongoing Red Sea conflict has led to the use of alternative routes, with shipping times jumping from the typical 18-20 days to a staggering 40-45 days. 

This has particularly affected small-scale avocado producers, who rely on the European market, which previously accounted for 70pc of Kenyan fruit exports. As demand dwindles in Europe, small producers are seeing their revenues shrink significantly.

Machuki noted that while exporters have extended their seasons and are shipping produce under suboptimal conditions to mitigate supply gaps, the rising costs and reduced efficiency are unsustainable in the long term. 

“We urgently need government intervention to resolve the Red Sea crisis and reopen access to the European market,” Machuki urged.

The Red Sea tensions stem from ongoing Houthi rebel attacks on commercial ships, as part of their stance against Israel in solidarity with Palestinians amid the Israel-Hamas conflict. 

The U.S.-led naval coalition has responded with strikes on Houthi military sites, escalating the conflict and further disrupting shipping lanes. 

As the crisis continues, the Kenyan horticulture sector’s resilience will be critical in navigating the uncertainty.

Y News Team
Y News Teamhttp://ynews.digital
Y News is a cutting-edge platform dedicated to delivering impactful stories in development, business and technology.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Trending

More like this
Related

National Assembly Impeaches DP Rigathi Gachagua

NAIROBI, Kenya- The National Assembly has impeached Deputy President...

Safaricom Launches Nationwide Youth Bootcamp Series to Empower Future Leaders

NAIROBI, Kenya- Safaricom, through its youth platform Safaricom Hook...

Kenya Calls On IMF To Review Corruption Amid Public Pressure

NAIROBI, Kenya- In a bid to strengthen its fight...

DigiKen Launches to Empower Kenyans In The Digital Economy

NAIROBI, Kenya- Kenya has officially taken a bold step...