Kenya’s avocado exports drive demand for refrigerated logistics
In Kenya, the increase in avocado exports has particularly raised demand for refrigerated containers and transport services needed to move the perishable produce.
Nairobi, Kenya - As Kenya's avocado export season gains momentum, the demand for refrigerated logistics is skyrocketing, according to Maersk, the renowned Danish shipping and logistics giant. Maersk's data indicates that agricultural exports from Kenya, Uganda, and Tanzania continue to bolster activity across East Africa's logistics sector in July. However, the surge in avocado exports has particularly elevated the need for refrigerated containers and transport services required to move this perishable commodity.
Recognizing this growing demand, Maersk is urging exporters to book shipping and transport services well in advance to circumvent potential delays stemming from limited equipment and trucking capacity. The company is actively monitoring the availability of refrigerated containers and collaborating with trucking and shipping partners to handle the burgeoning demand.
Maersk anticipates that this demand will remain robust throughout August, with delivery times potentially impacted by equipment and trucking shortages, as well as performance at ports and border checkpoints.
Concurrently, Uganda's Arabica coffee exports are also contributing to the surge in inland transport and logistics requirements. Maersk notes that logistics service providers are grappling with port and depot congestion, disruptions to their Middle East network, and new customs prerequisites in Kenya. The Kenya Revenue Authority's Advance Cargo Declaration (ACD) system commenced operations on August 3, mandating applicable containerized cargo destined for Kenyan ports to obtain an ACD reference code prior to loading.
Although the ACD system aims to furnish customs authorities with cargo and shipment information beforehand, it introduces an additional documentation obligation for importers and exporters.
Businesses are increasingly gravitating towards integrated logistics and warehousing services to mitigate supply chain risks and enhance distribution. For Kenyan avocado exporters, the confluence of seasonal demand, constrained refrigerated equipment, transport capacity, and evolving customs prerequisites makes early planning an increasingly crucial endeavor. Maersk anticipates exporters to maintain flexibility with shipping schedules and ensure that cargo and documentation are prepared, as demand surges.
Written by urgent.news from Capital Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
