“Reducing logistic costs for the wholesaler/importer”

Why should a wholesaler/importer buy roses in the Cargolite packaging concept? Cargolite and Afrex aim to answer this question by letting the wholesalers/importers experience the benefits firsthand when they buy roses from Afrex, Kenya. “One of the benefits of the Cargolite packaging concept is that airfreight costs are lower. Now, Afrex will offer this benefit on airfreight savings, to Afrex customers old and new “, says John Kowarsky, CEO of Cargolite. This rose promotion campaign will be launched at the IFTF exhibition this week, together with their half cartons.

1.60 pallet with internal cardboard frames

Afrex in Kenya
For more than two decades, Afrex has been exporting flowers and agricultural products from South Africa to many parts of the world. More recently, they set up a facility in Kenya, from which they will ship roses from specific farms. As they are so pleased with the Cargolite concept and convinced of the benefits, they will offer part of the savings on airfreight to their customers.

Half cartons
When talking about wholesalers/importers, the Cargolite packaging concept is currently mostly used by repackers. “They import large volumes, open the boxes, and repack it.” However, they also see possibilities for the Cargolite concept for wholesalers/importers and therefore produced the so-called ‘half carton”. When having the flowers packed in these half cartons, wholesalers do not have to open them and can ship them right away to their customers. In this way, they can make use of the many advantages of the Cargolite concept, like minimizing crushed boxes, more uniform cartons, less handling, and therefore a better-quality product.” The XL and half cartons are plastic frame free enabling recycling of just one product- carton!! The supporting frames are now inside the carton.

Half Carton, no plastic frames

Forwarder’s supporting Cargolite packaging concept
Another thing Kowarsky sees happening in the industry is that increasingly more forwarders are encouraging farms to palletize their flower boxes, “About 5 years ago, we were the first to encourage farms to palletize, now the advantages are being recognized by many. Handling for the forwarder for example is much less. When you palletize our cartons to 1.60m high, they can go from the farm to the destination without being dismantled. So, less handling means less labor, more efficiency, and resulting in a better-quality product.”

Low deck air pallet

Carton supply is stable again
Over the last two to three months in Kenya, Cargolite had some challenges with supplying cardboard as the main Cargolite supplier’s factory was burnt down completely. They had to go to other manufacturers which meant a price increase, even though when calculating the cost per stem, the cost was still on par with regular Kenyan cartons. “It gave us and our clients a hard time because on top of our prices which were higher, the prices of all imported products in Kenya, including cardboard, increased by 25% due to a new levy implemented by the Kenyan government. Fortunately, our manufacturer is now back in production, bringing back the pricing to an acceptable level.”

Cargolite entering the Ecuadorian market
In an article that was published earlier this year, we mentioned that the Cargolite concept is now fully commercial and available to local farms and international clients buying in Ecuador. Also, a go-down was set up in Tabacundo, Ecuador, last year, which supplies farms between Cayambe and Cotopaxi areas. To show how the concept works, they planned to hold a presentation in Miami in October, but due to the situation in Israel, where Kowarsky and Zamir are based, leaving Israel at the moment is problematic. Now this presentation is planned to take place after Valentine’s Day 2024.

Ecuadorian packed roses in Cargolite full carton

More logistic improvements in the pipeline
And there are more logistic improvements for perishables in the pipeline. However, the current situation in Israel is slowing down things. “We see that we can improve the logistics chain from the grower to the customer and save even more money. Hopefully, soon, we can trial it and come up with something entirely new in the Cargolite concept.”

IFTF
During the IFTF, which will take place from November 8-10, Cargolite and Afrex will be sharing a booth, and launching their Kenyan rose promotion campaign and their new half cardboard boxes.

Half and full carton