At the recent Fruit Logistica conference in Berlin, which took place recently, MSC, a world leader in container shipping, and logistics provider, showcased its unwavering commitment to support the fresh product sector growth of the fruits, vegetables, and flowers sector.
This sector is not only a critical component in the world, but of East Africa’s economy, which also represents a substantial portion of Agriculture’s GDP in the East African Community (EAC), ranging from 20 to 36 percent on average. It also provides a significant source of employment opportunities across the region.
The East African Community (EAC) reported a total export value of $1.1 billion USD for edible vegetables in 2022, with a strategic plan aiming to double its exports to $900 million over the next eight years. This plan includes increasing fruit production area and boosting intra-EAC trade, highlighting significant opportunities for logistics companies like MSC. The trade of fruits and vegetables between the EAC and the European Union (EU), valued at approximately $455.9 million annually, coupled with the surge in Africa’s fresh produce exports to fill supply gaps in the EU, the UK, and Asia, underscores the EAC’s pivotal role in the global fresh produce.
This is fuelled by rising demands in regions like Europe and India, particularly for avocados, which are boosting exports through the port of Mombasa. The growth for avocados to become the second-most traded major tropical fruit by 2030, after bananas is anticipated according to OECD/FAO Agricultural Outlook 2021-2030. Avocado production in Kenya and Tanzania has shown double digit growth in recent years. This presents a unique opportunity for African producers and emphasises the critical need for MSC’s reliable and efficient logistics services to maintain the global fresh produce supply chain balance. Notably, there’s a significant shift among EU buyers towards more sustainable transportation methods due to global warming concerns.
“At MSC, this shift towards sustainability is evident in our reefer volumes, which have seen a growth of 5-10% annually.” Comments Paul Bletterman, Regional Reefer Senior Manager and Business Development, MSC Kenya. “With our eyes set on expanding in the India and Middle East markets—estimated at a 5% growth—MSC’s comprehensive services and solutions in these regions underline our dedication to providing reliable and efficient shipping, catering to the evolving needs of our global clientele.”
During the conference, MSC demonstrated its innovative solutions to logistic and transportation challenges, highlighting its capacity to ensure supply chain continuity under any circumstances. MSC uses the largest and most advanced, environmentally friendly reefer container fleets in the world, which play an integral role in maintaining the freshness of perishable goods throughout their journey. These advanced refrigerated containers are equipped with Controlled Atmosphere (CA) technology to regulate carbon dioxide and oxygen levels, keeping fresh produce in perfect condition upon arrival at their destination, in optimal condition – even after very long journeys.
“This capability is critical for MSC’s clients, as it not only preserves the quality and freshness of the produce but also extends its shelf life. By integrating these reefer containers into the comprehensive logistic solutions, MSC showcases its commitment to supporting the agricultural sector’s supply chain needs, ensuring that products meet the highest standards of freshness and quality upon delivery, adds Bletterman.”
MSC’s response to the Suez Canal disruption showcases its strategic agility. Cargo from East Africa, particularly from Mombasa, will be rerouted to Ad Dammam or Jubail in Saudi Arabia, then transported by road to King Abdullah or Jeddah ports. From there, to be loaded onto services calling Turkey, and West Mediterranean ensuring continued access to Turkish and European markets. This solution aims to provide an alternative solution despite extraordinary circumstances.