Rwanda is set to continue its trial of avocado exports by sea freight after a successful initial shipment to Dubai in November, last year. The pilot shipment, which transported nearly 23 tonnes of Hass avocados, demonstrated that sea transportation was over 44 percent cheaper than air cargo.
The container carrying the avocados was delivered to Carrefour hypermarket in Dubai, the most populous city in the United Arab Emirates (UAE).
The results of the trial were shared during an Avocado Sea Freight Trial Workshop held on Wednesday, June 7. The workshop provided an opportunity to review the outcome of the first container freight and explore the holistic benefits of sea freight for the horticulture business.
Exporters had the chance to learn from industry experts about the successes, challenges, and recommendations, as well as network with other stakeholders.
This initiative aligns with Rwanda's plan to find an alternative and cost-effective means of transporting horticultural exports, as airfreight has proven to be expensive.
The pilot shipment was the result of a collaborative effort between the government and partners, including IDH, Flying Swans, and avocado exporters.
It is part of the "Investing in Horticultural Development in Rwanda" project (HortInvest), funded by the Embassy of the Kingdom of the Netherlands in Rwanda, which aims to advance the country's horticulture sector.
Previously, all horticultural produce in Rwanda was shipped by airfreight due to the country's landlocked nature and lack of alternative options. However, airfreight is costly and has a high carbon footprint.
Benson Shivairo Shivachi, a Packhouse Management Specialist, presented the findings of the avocado sea freight trial to Dubai. He revealed that sea freight to Dubai cost $0.614 per kilo, which was 44.45 percent lower than the $1.1 per kilo charged for air cargo.
When considering other expenses associated with cargo transportation, such as packaging and maritime insurance, sea freight was found to be 25.5 percent less expensive than air freight, with costs of $1.743 per kilo and $2.341 per kilo, respectively.
However, the trial showed that sea shipment to Dubai took 22 days, significantly longer than the one-day transport time of air freight. To ensure the safety and extended shelf life of fresh produce required by consumers, specialized containers with controlled atmospheric (CA) functionality, in addition to temperature control, are necessary.
Sylvie Nirere, IDH Rwanda Country Manager, emphasized the market potential and profitability of exporting Hass avocados, known for their delicious taste, once exporters have access to affordable and efficient transport logistics.
While acknowledging that drawing conclusions based on a single container shipment would be premature, she highlighted the cost advantage of sea freight over airfreight. She also noted that many buyers in Europe are increasingly concerned about the carbon footprint associated with air cargo, making the sea route an appealing alternative.
"We looked at market trends and realized that European buyers want to shift away from air transportation due to growing environmental awareness. As IDH, one of our impact areas is to contribute to a better environment by reducing carbon emissions associated with air shipping and offering a sea route that reduces such emissions," she explained.
Looking ahead, Jean-Marie Vianney Munyaneza, the Export Services Division Manager at the National Agricultural Export Development Board (NAEB), expressed the desire for the private sector to take the lead in adopting sea freight for horticultural produce.
While the first container was shipped through NAEB, the second shipment, expected around October, will be carried out by private companies. These initiatives are crucial for increasing horticultural exports and reducing business costs for exporters.
"We have received positive feedback from the buyer, Carrefour, regarding the quality and food safety. They are willing to collaborate with us on sea container transport," Munyaneza remarked.
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According to figures from NAEB, Rwanda's avocado export revenues rose from $1.6 million in 2021 to $4.5 million in 2022. During the same period, avocado production increased from approximately 1,000 tonnes to 2,600 tonnes, a growth of over 250 percent.
Munyaneza projected that annual avocado production would reach 17,000 tonnes by the end of 2026, highlighting the need for diversified transport options beyond air cargo.
Robert Rukundo, Chairman of the Horticulture Exporters Association of Rwanda, emphasized how sea shipment aligns with maximizing profits, the primary goal of any business, by reducing horticultural transport costs.
"Our involvement in the reefer container, or shipping by sea route, aims to expand our business and move from export for survival to export for prosperity," he stated.
