Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 02, No. 065

FIATA Diplomas in Numbers

A total of 1,230 FIATA Diplomas in Freight Forwarding (FDFFs) were delivered this year, pushing the total of FDFFs delivered to 18,207 since its creation in 1996 until the end of 2021. Moreover, there were 39 students receiving the FIATA Higher Diploma in Supply Chain Management (FHDSCM), bringing the total number of FHDSCMs delivered since 2013 to 429.

Although the COVID-19 pandemic has been a significant challenge, continuous learning and attainment of the FIATA Diploma has proven to be even more essential. Indeed, by increasing the number of FIATA Diploma holders by +7.3% compared to 2020, FIATA is happy to report that the industry’s skilled workforce keeps growing despite the disruptions of the pandemic.

FIATA would like to warmly congratulate all the 2021 graduates and thanks its Association Members, with whom we work hand-in-hand, for their commitment to high training standards. Currently, there are 44 Association Members with validated training programmes leading to the FIATA Diploma in Freight Forwarding and 13 for the FIATA Higher Diploma in Supply Chain Management.

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Transport Ministry Gives Last Warning To Truck Importers

Ministry of Transport gives final warning to 148 truck importers which have been awarded to import 3200 trucks.

A year ago with advice of the macroeconomic committee, the National Bank of Ethiopia to purchase more vehicles by interested and capable companies have been selected by the ministry Following the issuance of a bid, 168 companies vied to buy 3200 freight trucks with a credit facility from the Commercial Bank of Ethiopia (CBE). For the procurement of the trucks, a tender was then floated on January 12, 2021. The trucks were expected to be delivered to the country within 60 to 120 days, and had to meet the specifications outlined in the bid document including the payload and carrying capacity.

The procurement is set to ease problems in the logistics sector brought on by a shortage of trucks. With the initiative, the private sector will procure the trucks through a supply credit modality approved by the National Logistics Council.

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Ethiopian Airlines Ramps Up Cargo Investment For African E-Commerce Hub

Ethiopian Airlines Ramps Up Cargo Investment For African E-Commerce Hub

Ethiopian Airlines Group will ramp up investment in cargo services and infrastructure and is looking to become a logistics hub for Africa’s growing e-commerce market.

The continent’s largest airline is considering an order for about five Boeing Co. 777 freighters and may also take upcoming Airbus SE A350s, Chief Executive Officer Tewolde GebreMariam said in an interview.

The carrier is also looking to expand its cargo operations in Addis Ababa and hire new people, he said.
Cargo now accounts for half of Ethiopian’s revenue, compared with about 15pct before the coronavirus, Tewolde said. That figure may drop to 30pct as passenger services recover, which he said is likely to accelerate when China opens up in the second half of 2022.

“Cargo is the breadwinner, that’s how we remain profitable and cash positive,” Tewolde said. “The passenger side is still suffering. We are about 70pct of pre-Covid capacity.”

Ethiopian is finalizing the creation of new airline in the Democratic Republic of Congo, and will own 49pct of the company. It has similar partnerships with the governments of Zambia, Chad and Malawi.

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Ethiopia Alternates to Kenya’s Port to Alleviate Djibouti Dependency

Ethiopia plans to start using Port Lamu and Mombasa within a few months’ time as part of its increase of port proportion and alternative sea outlet.

“Ethiopia’s cost of land transport per kilometer is the cheapest when compared to neighboring countries. However the distance from port to destination areas is a challenge in staying competitive in the international market,” stated Dagmawit Moges, Minister of Transport and Logistics on her latest appearance at the Urban Infrastructure and Transport Standing Affairs Standing Committee of the parliament, adding that using alternative ports could solve this. “We have to stop depending on one port, as the country is big.”

According to Eng. Yehualashet Jemere Director General of Ethiopian Maritime Affairs Authority (EMAA), the ministry is preparing commandments on the utilization of port Mombasa to start operation with in short period of time, additional to having continued discussions with the government.

Ethiopia, which is the biggest population without a sea outlet in the world, mainly uses ports in Djibouti which are connected by three roads and a railway network for cargo import. In the last twenty years Ethiopia had been using ports at Djibouti which has undertaken massive logistics developments to accommodate Ethiopia’s growing demand.

Ethiopia is currently looking for alternative sea ports in neighboring countries of Sudan, Kenya and Somalia to ease increasing dependency in Djibouti.

Ministry of Transport and Logistics expressed that ownership and management of seaport will be determined by the ten year transport plan. The transport sector development in general is expected to consume 3.2 trillion birr or USD 75 billion in the coming decade, while the sector that is mostly preserved for public and domestic investors will expand its playground to foreign investors in different schemes.

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Transportation of Soil Fertilizer Started

The Draftzila vessel which started from Port of Jorf in Morocco has arrived at the port of Djibouti to unload the first 64,670 metric tons of fertilizer for the 2014/15 season.

Ethiopian Shipping and Logistics Services Enterprise was able to carry out the shipment within hours of arriving at the port due to adequate preparation.

Necessary preparations have been made with stakeholders to transport the fertilizer from the port of loading to farmers.

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ECAA Sees Rejuvenation in Leadership

Yehualaeshet Jemere, former State Minister of Transport (MoT), has become the second Director General for EMA to fill the vacant position that was left by the founding head and maritime sector guru, Mekonnen Abera.

When he was State Minister at MoT, Yehualshet was responsible to regulate the activity of EMA and ECAA besides other responsibilities. Yehualshet has also served as Deputy CEO and Rail Network Division Head at Ethiopian Railways Corporation.

Mekonnen, is known for the big role he has played from the inception to the re-establishment of the government regulatory body for the maritime industry that was dissolved after the fall of Derg. The Marine Transport Authority regulatory services was dissolved and transferred to different offices like Ministry of Transport and Ministry of Trade, while the study that Mekonnen and others were involved in showed that a relevant regulatory body will be required to govern the sector despite the country being landlocked.

Based on that EMA was established in 2007 by Proclamation No. 549/2007 and Mekonnen was assigned to undertake the formation and leadership responsibility and he led the regulatory body for 14 years.

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Logistic Fleet Operations Have Weathered the Storm, Maintains ESLSE

Ethiopian Shipping and Logistics Services Enterprise (ESLSE) announced that the logistics fleet operation was commendable despite the conflict escalations in the past few months.

The state owned mammoth logistics enterprise said that despite the war affecting its operation, the shipments that are transported to the country is promising.

In relation to the economic activity of Djibouti, recently the International Monetary Fund stated that growth is expected to recover to about 4 percent in 2021 on a rebound in investments and construction, but the outlook for 2022 is less favorable and subject to downside risks due to the conflict in Ethiopia and a possible resurgence of the pandemic. Once the regional security and health situations are secured, growth prospects are strong, with a competitive port sector well-positioned to benefit from a rebound in regional and global trade.

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Italian Companies Show Interest to Invest in Ethiopia in Logistics and Vehicle Assembly Areas

Two Italian companies; Rimorchiatori Riunti Group and GE car Group have expressed interest to conduct a pre-investment visit to Ethiopia in order to explore opportunities in the country. The companies have shown interest to invest in Ethiopia in areas of logistics, transport and vehicle assembly.

Rimorchiatori Riunti Group is a huge shipping and logistics company operating in several parts of Europe including Malta, Greece, Columbia and London. Rimorchiatori Riunti Group stated that it has an interest to tap the investment opportunity in Ethiopia.

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IATA calls 2021 Stellar Year For Air Cargo; Registers Second Biggest Demand Growth

The International Air Transport Association (IATA) released data for global air freight markets showing that full-year demand for air cargo increased by 6.9 percent in 2021, compared to 2019 (pre-COVID levels) and 18.7 percent compared to 2020 following a strong performance in December 2021.

This was the second biggest improvement in year-on-year demand since IATA started to monitor cargo performance in 1990 (behind 2010’s 20.6 percent gain), outpacing the 9.8 percent rise in global goods trade by 8.9 percentage points.

Capacity in 2021, measured in available cargo tonne-kilometres (ACTKs), was 10.9 percent below 2019 (12.8 percent for international operations).

Capacity remains constrained with bottlenecks at key hubs.

Labor shortages, partly due to employees being in quarantine, insufficient storage space at some airports and processing backlogs continue to put pressure on supply chains. The December global Supplier Delivery Time Purchasing Managers Index (PMI) was at 38. While values below 50 are normally favorable for air cargo, in current conditions it points to delivery times lengthening because of supply bottlenecks,” reads the release.

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