By: Mark Allen, FloraLife, a division of Smithers-Oasis Company, and Alex Shibata, Mt. Eden Floral Company
June 19, 2026
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Over the past six months, the cut flower industry, particularly flows from Colombia and Ecuador into the United States, has experienced a series of interconnected shifts that are reshaping the operating environment for floral wholesalers. While many of these trends have been building over several years, their recent acceleration is now having a direct impact on sourcing strategy, cost management, and daily operations.
From WFFSA’s perspective, this period highlights a clear transition toward a more structured, cost-sensitive, and planning-driven supply chain.
1 – Ocean Freight Continues to Gain Ground
One of the most visible developments has been the continued expansion of ocean freight as a viable transport mode for fresh-cut flowers into the U.S. market.
Ecuador remains at the forefront of this shift into the U.S., particularly in roses, with Colombia gradually increasing participation on U.S.-bound lanes. It is important to note that Colombia has been moving significant volumes via ocean to Europe for many years. What is changing now is the increased adoption of ocean freight on shipments destined for the United States.
Improvements in cold chain integrity, reefer container reliability, and port handling processes have made it possible to move more product by sea without compromising quality.
What has changed in the past six months:
- Increased confidence in ocean reliability for U.S.-bound shipments
- A broader range of products being moved via ocean into the U.S.
- Expanded use for base inventory rather than opportunistic shipments
Implications for wholesalers:
- Longer lead times require stronger forecasting and forward planning
- Reduced flexibility compared to air freight
- Greater importance of maintaining consistent handling practices, particularly on arrival, to protect quality after extended transit
- Opportunity to improve cost position with disciplined purchasing
2 – Labor Cost Increases Are Now Fully Impacting Supply
Labor inflation in Colombia has moved from a known concern to a realized cost pressure across the supply chain.
Recent increases in minimum wage, approximately 16 to 19 percent, were driven by government decisions and policy changes. These increases, combined with higher social contributions and regulatory changes such as reduced working hours, are now fully reflected in grower pricing.
What has changed in the past six months:
- Government-mandated wage increases are now fully embedded in farm economics
- Reduced ability for growers to absorb additional cost pressure
Implications for wholesalers:
- Higher and more stable FOB pricing levels
- Reduced flexibility for promotions
- Increased importance of cost transparency and supplier alignment
- Heightened focus on minimizing waste and preserving quality, as every stem carries more cost than before
3 – Freight and Logistics Volatility Remains a Challenge
While overall freight costs have moderated from their peak, volatility remains a defining issue.
Air cargo rates, fuel surcharges, ocean freight costs, and domestic trucking expenses continue to fluctuate, often with limited predictability.
What has changed in the past six months:
- Greater unpredictability in total landed costs
- Short-term cost swings impacting key buying periods
Implications for wholesalers:
- More complex margin management
- Higher risk when committing to holiday inventory
- Need for closer coordination between procurement, sales, and pricing
- Increased attention to shrink, as cost variability makes waste more financially impactful
4 – Breeder Rights Enforcement Enters a New Phase
A significant shift, and one that remains underappreciated, is the increased enforcement of plant variety protection through genetic identification.
DNA testing is already widely used for variety identification and is increasingly being applied to support enforcement of breeder rights.
What has changed in the past six months:
- Increased enforcement activity
- Greater awareness across growers and exporters
Implications for wholesalers:
- More controlled and transparent variety supply
- Reduced availability of unofficial alternatives
- Incremental cost increases linked to compliance
This represents a long-term shift toward a more regulated and intellectual property driven supply chain.
5 – SKU Simplification Accelerates
Over the past six months there has been continued movement toward SKU rationalization and standardization.
Driven by labor constraints and efficiency needs, there has been a reduction in:
- niche varieties
- custom configurations
- complex stem counts
What has changed in the past six months:
- Faster adoption of standardized bunches
- Greater consistency in pack formats
Implications for wholesalers and florists:
- Easier handling and improved efficiency
- More predictable inventory
- Reduced flexibility for highly customized offerings
6 – Shift Toward Planned Purchasing
The past six months have reinforced a move away from dependence on spot market purchasing.
Supply chain constraints, freight variability, and cost pressures have driven increased reliance on pre-booking and planned sourcing.
What has changed in the past six months:
- Less availability of last-minute product at stable pricing
- Increased use of pre-arranged supply programs
Implications for wholesalers:
- Stronger reliance on supplier relationships
- Increased need for accurate demand forecasting
- Balance required between commitment and flexibility
7 – Climate Variability Impacting Supply Consistency
Weather patterns in Colombia and Ecuador remain unpredictable and continue to affect production.
Excess rainfall in Colombia is impacting yields and increasing disease pressure. Temperature variability in Ecuador is influencing stem length and bloom consistency.
What has changed in the past six months:
- Continued variability in production results
- Greater inconsistency in product quality
Implications for wholesalers:
- Variability in arrivals and grading
- Increased price swings around key holidays
- Greater need for backup sourcing strategies
- Increased focus on sorting, processing, and handling to maximize usable product
8 – Labor Availability at the Wholesale Level
Labor availability is increasingly becoming a constraint within wholesale operations.
Hiring challenges are driving a stronger focus on operational efficiency and process simplification.
What has changed in the past six months:
- More wholesalers adjusting workflows to manage labor shortages
- Increased focus on efficiency improvements
Implications for wholesalers:
- Alignment with standardized product formats
- Streamlining of receiving and processing operations
- Focus on productivity per labor hour
- Increased value in consistent, simple handling protocols that reduce rework and waste
9 – Increased Focus on Inventory Discipline
With longer lead times and less spot availability, inventory management has become more critical.
What has changed in the past six months:
- Reduced tolerance for overbuying
- Greater financial exposure tied to inventory decisions
Implications for wholesalers:
- Stronger reliance on data-driven purchasing
- Closer alignment between sales and procurement
10 – How Wholesalers Should Be Responding
Taken together, the past six months point to a more structured and less reactive supply chain.
Key actions for wholesalers:
- Strengthen forecasting and forward planning
- Deepen supplier relationships to secure supply
- Align purchasing with longer lead times
- Embrace SKU simplification to improve efficiency
- Enhance cost visibility and margin management
- Develop contingency sourcing strategies
- Focus on reducing waste and protecting product quality throughout handling and distribution
