Association Calls on Government Support to Expand Logistics
The Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) called on the government to scale-up its support to galvanize the logistic industry.
“Although the government has demonstrated its commitment to the logistic sector, the ever-increasing logistics demand and the pace of Ethiopia’s economic growth dearly need significant improvements,” said Sileshi Kasie, Executive board member of the association.
“In spite of the existing smooth relations with concerned government figures, especially in invitations to partake and confer with policies and directives related to the sector, authorities should give significant attention to shift the present backward system into state-of-the-art logistic technologies.”
According to Sileshi, key issues which the logistic sector demands are instant availability of supply of credit, facilitation of banking and other documentations, which are the very essentials of the logistic sector for fast moving of commodities.
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- https://www.thereporterethiopia.com/article/association-calls-government-support-expand-logistics
- https://www.ethiopianreporter.com/article/22390
Nation Joins World Logistics Passport Program
Ethiopia has become a member of the World Logistics Passport, a loyalty program which enables freight forwarders, traders and business owners to draw the maximum possible benefits from their trading operations, the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) disclosed.
During a press conference he held today, EFFSAA Vice President Dawit Woubshet said the country will get efficient international trade exchange services and benefit from better supply chain.
Ethiopia’s membership will also greatly contribute to the reduction of freight time and the establishment of modern monitoring system, he added.
Member countries “will get big discounts, fast deliveries and networking. They will attend biannual and yearly conferences or symposiums where they could create regional and global networks and market exchanges as well as meet freight forwarding associations to improve their work in the future,” the vice president stated.
Besides, it would enable Ethiopia to strengthen trade ties and benefit from the market potentials of Asia and Latin America.
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Shipping Company Surges Tariffs, Blames Container Shortages
The Ethiopian Shipping & Logistics Services Enterprise (ESLSE) has introduced new cargo tariffs comprising four times higher than its rate last year, blaming a shortage of containers due to imbalances created during COVID-19 lockdowns. This has put importers in hot water as the Enterprise delays the arrival and delivery of shipments.
The Enterprise has increased its tariffs drastically, setting them as high as 4,838 dollars for 20ft containers and 9,223 dollars for 40ft containers. Managers at the Enterprise attribute the surge in tariffs to market disruptions in the global logistics and shipping industry and insist that the revised fees are fair compared to current global rates.
With the Enterprise having a monopoly in the market, operating 11 vessels of its own, including two tankers, importers may have no other choice but to oblige, bearing the increased costs for the transportation of their cargo in the meantime.
China, the Enterprise’s major destination and the source of 27.7pc of Ethiopia’s imports that stood at 13.8 billion dollars last year, is where the Enterprise faces the problem mostly due to the shortage of containers. This includes raw materials for the local manufacturers.
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Expansion of Modjo dry port project in Ethiopia begins
Expansion works on the Modjo dry port in central Ethiopia has commenced. Minister of Transport Dagmawit Moges performed the ground breaking ceremony and said the expansion aims to modernize landlocked Ethiopia’s logistics sector.
Modjo Dry Port is Ethiopia’s first dry port development which started on a small scale at the end of 2009, relieving the congested Djibouti. It is a key transportation and logistics facilitator between Ethiopia’s hinterland and ports in neighboring Djibouti.
The expansion project involves construction of six warehouses, several road and pavement work, multipurpose buildings and various operating facilities. Chinese construction firm, China Civil Engineering Construction Corporation (CCECC) were awarded the project contract which is set to cost US $110m. It is being financed by the World Bank.
Read More at:
- https://constructionreviewonline.com/news/ethiopia/expansion-of-modjo-dry-port-project-in-ethiopia-begins/
- http://www.xinhuanet.com/english/2021-06/18/c_1310015792.htm
- http://www.shegerfm.com/node/29875
- https://www.facebook.com/EBCzena/?hc_ref=ARSK1-sb5dFwjzuTlFhbU52DeyB0rRfaKRgFnRf_D6sP5VgqrQ0C9nLl-HtKLFhkLgY&fref=nf
- https://twitter.com/dagmawit_moges/status/1405560454043287555
“Due to significant increase in freight charge, about 7,000 Ethiopia’s containers accumulated in various Chinese ports” said ESLSE.
The CEO of Ethiopian Shipping and Logistics Service s Enterprise, Ato Roba Megersa underlined that, due to COVID-19 restrictions, containers which were destined in different countries are not returned. Because of the shortage of containers, the freight charge soared from 3000 USD to 9000 USD on average in the past few days.”
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COVID Outbreaks in Chinese Ports Could Cause Global Goods Shortages
An outbreak of Covid-19 in southern China has combined with the rapid reopening of the world economy and a shortage of shipping containers to cause a surge in transport costs that could fuel inflation and cause shortages of goods across the globe.
Transporting a 12.2-metre (40ft) steel container by sea from Shanghai to Rotterdam now costs a record $10,522, which is nearly 300% higher than it was last year, according to Drewry Shipping. Ports in Guangdong, including Yantian, Shekou, Chiwan and Nansha, have barred vessels from entering ports without advance reservations and will only accept bookings for export-bound containers within three to seven days prior to the arrival of vessels.
Major shipping companies have warned clients of vessel delays, changes to port call schedules, and the possibility of skipping some ports altogether.
“One of the biggest ports in China has basically closed down for close to three weeks. They have some berths in operation, but nowhere near enough”, says Nils Haupt, communications director at the German shipping line Hapag-Lloyd, told the BBC.
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