Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 02, No. 064

“We’ve Agreed on Ways of Enhancing Our Cooperation with DP World in Logistics Sector” Dagmawit Moges

Minister of Transport and Logistics, W/ro Dagmawit Moges, said she had a fruitful discussion with Sultan Ahmed bin Sulayem, Chairman and CEO of DP World in Dubai.

She further said that they have discussed with the service provider the possibility of cooperating in the logistics sector and reached an agreement to enhance their partnership.

Headquartered in Dubai and the United Arab Emirates, DP World is a world-renowned freight, port and technology based trade logistics service provider.

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The Authority Considering Entrance of Cargo Trucks from Neighboring Countries to Alleviate the Shortage.

Due to the occurrence of shortage of cargo trucks locally, activities are underway for the entrance of vehicles from neighboring countries to Ethiopia for short period of time to provide service.

Although there are about 25,000 trucks in Ethiopia, the number of border crossing vehicles are less than 13,000, according to Director General of Ethiopian Maritime Authority, Yehualaeshet Jemere (Eng).

On the other hand, from trucks which were actively providing service, more than 1000 of them were destroyed or left in war areas due to the fighting in north Ethiopia.

When the fertilizer, which is expected to be shipped to Ethiopia by 30 ships this year, is fully procured and arrived at port, it will need a number of vehicles for transportation, he said.

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The Share of The Port of Djibouti is Reportedly Decreasing

The port of Djibouti, which controlled Ethiopia’s import and export trade, has been replaced by other ports, said Dagmawit Moges – Minister of Transport and Logistics.

The port of Djibouti, which previously handled up to 98% of Ethiopia’s imports and exports, accounted 83.9% from the imported 7.7 million metric ton cargo and exported 620 thousand ton cargo in the last six months. Whereas Berbera and Tadjoura ports handled 10.2% and 5.9% respectively according to the Minister.

Dagmawit added that, government’s port diversification strategy is bearing fruit and competitiveness will increase by reducing costs as the use of Lamu and Mombasa ports in Kenya become operational in the coming months.

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CEO of ESLSE Holds Talks with Somaliland Delegation

CEO of Ethiopian Shipping and Logistics Services Enterprise Ato Roba Megersa has discussed with the Somaliland delegation about the possibility of providing a competitive Berbera-Ethiopia trade corridor for the import and export trade and the provision of Berbera port services.

The meeting mainly focused on strengthening the bilateral relations between the Ethiopian Shipping and Logistics Service Enterprise and the port of Berbera.

Roba also briefed the delegation on the service being provided by the enterprise, the construction of dry ports and expansion projects.

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Dakar Terminal becomes 5th Port Concession to be Granted Green Terminal Label

Dakar Terminal becomes 5th Port Concession to be Granted Green Terminal Label

Dakar Terminal, a subsidiary of Bolloré Ports and operator of the El Hadji Malick SY ro-ro terminal, has been awarded the Green Terminal label following the audit conducted on 23 December 2021 by Bureau Veritas.

Dakar Terminal is the fifth port concession to obtain this label in recognition of its commitments and the measures taken to mitigate the impact of its activities on the environment.

The audit was conducted by Bureau Veritas experts and based on the eight pillars of the labelling process, which include work processes, building infrastructures that comply with international standards, acquiring more environmentally friendly handling equipment, waste management and training employees in best practices related to environmental issues.

The Green Terminal label was launched by Bolloré Ports in June 2021 with the aim of reducing the carbon footprint of its activities by relying on a methodology validated by Bureau Veritas, one of the world’s leading testing, inspection and certification companies, and covering all environmental concerns.

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Warning Shipping Delay Problems to Continue This Year

Warning Shipping Delay Problems to Continue This Year

Global supply chain disruption and shortages caused by the COVID pandemic are set to continue well into 2022, according to a report.

Digital supply chain experts project44 say average delays on shipping from China to Europe rose to 6 days in December, after falling for months. Delays on routes from China to the west coast of the US have also been increasing steadily since October.

Congested ports and production delays have disrupted schedules for months.

The report said COVID continues to have a huge impact on global trade, as shipping costs have soared, delays have become routine, and empty shipping containers across the world are in the wrong place.

It means the number of blank sailings – when container ships cancel routes or miss out ports on their normal schedule – has been increasing.

Ports around the world have been trying to speed things up. Rotterdam, for example, handled a record number of containers in December, and several ports have moved to 24/7 working patterns to try to keep up with demand.

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Suez Canal Expansion Plans Accelerated For Completion By July 2023

A project to expand parts of the Suez Canal is expected to be completed after two years of work in July 2023, the chairman of the Suez Canal Authority (SCA) said.

The SCA announced accelerated plans to extend a second channel of the canal and to enlarge an existing channel after the Ever Given container ship ran aground and blocked the waterway for six days last year.

“The project will be completed in 24 months. We started in July 2021 and God willing we will finish in July 2023,” Chairman Osama Rabie said on the sidelines of an event in Dubai.

Ships pass through the canal in convoys, and the extension of the second lane would increase capacity by six ships, Rabie said, without giving further details.

The southernmost 30 km of the canal, where the Ever Given became grounded, is set to be widened 40 meters eastward and deepened to 72 feet from 66 feet, according to previously announced plans.

“This will improve ship navigation by 28% in this difficult part of the canal,” Rabie said.

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Safety Warning as Old Containers are Pressed Back into Service

Safety Warning as Old Containers are Pressed Back into Service

TT Club, an insurance company, has warned on the risks of more and more old containers being pressed back into circulation during the ongoing supply chain crisis.

“One of the immediate repercussions of equipment imbalances, shortages and increase in new equipment costs has been a tendency for owners and operators to retain equipment that would ordinarily have been retired from service,” the TT Club stated in an update to clients.

There has also been anecdotal evidence of containers being brought back into service from retirement leading to concerns about stack collapses at sea.
“Ensuring that controls, processes, records and, importantly, maintenance regimes remain valid is critical to underpin safety,” the TT Club stressed.

With containers taking at least twice as long to reach their destination during the pandemic, and a severe lack of available empties at many locations across the world, the Chinese, who control more than 95% of box production, are ramping up the manufacturing of new containers this year.

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