Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 049

WIFFA and Ethiopian Freight Forwarders and Shipping Agents Association held online cooperation talks

WIFFA and the Ethiopian Freight Forwarding and Shipping Agency Association held the first cooperation meeting. The meeting was held in Dalian, China, Shanghai, and Ethiopia.

In Dalian, Mr. Kang Shuchun, chairman of WIFFA International Credit Cooperation Platform, and core team members of WIFFA headquarters; in Ethiopia, Elizabeth Getahun, Chairman of the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA), and relevant persons in charge of the association; in Shanghai, WIFFA Feng Guangyi, Chairman of Ethiopian Overseas Cooperation Platform, Jiang Linlin, Chairman of Yitian Internet of

Things (Shanghai) Co., Ltd., and their core team members.

The cooperation meeting between WIFFA and Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) will provide greater opportunities for future economic and trade exchanges between the two countries. Space for development.

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MoF Revises Tariff Book

Ministry of Finance (MoF) revises the tariff book that shows massive rate changes on industrial inputs and some basic commodities. The tariff book that issued on Friday has 371 pages and includes over 8,000 items.

On its twits, the ministry said that in order to encourage the growth of the manufacturing sector in Ethiopia, the tariff book with over 8,000-line items for raw material, intermediate goods, and capital goods has been revised.

Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes, ores, slag and ash, inorganic chemicals organic chemicals are some of the industrial inputs that rested on free from tariff except some of the items which are mainly included under five percent.
On its statement MoF said that the tariff change has focused on agriculture and the manufacturing sectors in order to support them on local production and import substitutions.

The tariff revision has been conducted under a committee that comprised members from different ministries including MoF, Ministry of Trade and Industry, and Ministry of Revenue. The revision has also considered easing finished goods but basic necessities.

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ESLSE to Start Ferry Service

Ethiopian Shipping and Logistics Services Enterprise (ESLSE), the only flag carrier in Africa, set a strategy to commence cabotage and passenger services.

The logistics giant and multimodal monopoly indicated that in its five-year strategy it will include more services including adding new medium size vessels to help achieve its goal.

Roba Megersa, CEO of ESLSE, asserted that regarding potential, ESLSE is in a good position in Africa to commence cabotage service to serve coastal areas in the region. Cabotage is the transport of goods or passengers between two places in the same country by a transport operator from another country.

ESLSE also target to commence passenger transport with ferries. In the region there is a potential to commence passenger services with ferries. The price will be competitive than air transport, according to the CEO. The ferries are bound to take passengers from East Africa to the Middle East. The scheme is also included in the five-year strategy.

The enterprise is also engaged on West African market-chartered service. “Recently the enterprise has transported a project cargo from China to Senegal. The business is encouraging and we will continue to operate,” the CEO explained.

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Ethiopian Airlines enters into top 25 ranking lists in cargo transportation: IATA WATS

The International Air Transport Association (IATA) published the IATA World Air Transport Statistics (WATS) with performance figures for 2020 which signifies the devastating effects on global air transport. In international cargo, Ethiopian Airlines which ranked 21st recorded 3,393 million in scheduled cargo tonne kilometres (CTKs) and 19th by scheduled freight tonnes carried i.e. 623,000. With this, the airline has entered into top 25 ranking lists globally.

Last week, IATA released the data for global air cargo markets for June showing a 9.9 percent improvement on pre-Covid-19 performance (June 2019). As per the data, African airlines’ international cargo demand in June increased 33.5 percent compared to the same month in 2019. This was the strongest performance of all regions, but notably on small volumes (African carriers carry 2 percent of global cargo). International capacity in June decreased by 4.9 percent compared to the same month in 2019.

Ethiopian’s Addis Ababa cargo terminal handled more than 500,000 tonnes of freight in 2020, according to the African Airlines Association (AFRAA).

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Ahmat Abdelkerim joins as Horn of Africa MD for Bollore Transport & Logistics

Starting July, Ahmat Abdelkerim assumed charge as managing director of the Bolloré Transport & Logistics Horn of Africa cluster. He will be managing the business activities in three countries: Djibouti, Ethiopia and Eritrea. He succeeds Patrick Gerenthon, who has moved on to perform other duties within Bolloré Transport & Logistics.

As part of his new duties, Ahmat Abdelkerim will supervise the development of the company’s logistics activities in the countries of the division and will contribute to reinforcing our presence in East Africa.

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Chinese Ports Report Growth in Cargo and Container Volumes in 2021

Chinese Ports Report Growth in Cargo and Container Volumes in 2021

China’s Ministry of Transport reports that cargo and container throughput volumes at China’s ports showed strong growth in the first half of the year. This comes despite disruptions in the supply chain including the blockage of the Suez Canal for six days in March after the Ever Given became stuck and the nearly month-long struggle at the southern ports and primarily Yantian due to a cluster of COVID-19 that impacted port operations.

Responding to the current pressures in the supply chain, Chinese officials said that the country is striving to increase shipping space and container supply to accommodate the increased demand. To ease container shortage and rapid increase of freight rates in the international shipping market, China reports that it has worked to substantially increase the shipping space by working with the major liner companies.

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Singapore Seeks to Build Electric Vessel Supply Chain for Harbor

Singapore Seeks to Build Electric Vessel Supply Chain for Harbor

A coalition of companies, research institutes, public authorities, and a classification society plan to work together to develop Singapore’s first comprehensive electric vessel supply chain, which they believe can become a model for decarbonizing harbor operations. The effort, which will be led by Keppel Offshore & Marine seeks to launch the electric supply chain by 2025. Studies indicate with approximately 1,600 diesel-powered harbor crafts operating in the Port of Singapore electrification can have a significant impact on carbon emission.

The scope of the project includes developing a cost-competitive electric-powered harbor craft, nearshore charging infrastructure, as well as upskilling and developing core talent in marine operations. In the first phase, the coalition will conduct research and feasibility studies as well as pursue the design and development of an electric vessel and charging infrastructure. The project will include retrofitting harbor crafts and installing the charging stations. The partners will then conduct trials and seek to scale up the project.

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