Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 02, No. 094

EFFSAA’s Participation on the Prestigious Global Freight Summit

EFFSAA’s Participation on the Prestigious Global Freight Summit
EFFSAA’s Participation on the Prestigious Global Freight Summit

Our Association has participated on the 2023 Global Freight Summit organized by DP World, one of the world’s giant logistics company, held from 15-17 November 2023 in Dubai, UAE.

EFFSAA joined the second edition of GFS as an exhibitor and a panelist. On a program which brought together more than 5000 professionals, gathered from across the world, EFFSAA grabbed the opportunity to showcase its activities, promote members and create a business link with the global Logistics community. Participants who visited its exhibition booth had acquired vital information about the association and the country’s logistics industry as well.

Our Association also had a privilege to share a stage with fellow African Freight Forwarding Associations as panelist of the event under the title “Building Hubs: Africa – An Emerging Supply Chain Powerhouse?”

Represented by its Vice President Dawit Woubishet, who is also the chairperson of AFI of FIATA, the current position of Ethiopian Logistics sector was briefly explained to participants.

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Logisticians Ecstatic Over New Delivery Capped Fees

Logistics operators in Ethiopia and Djibouti applaud the initiative currently being implemented by the Djibouti Ports and Free Zones Authority (DPFZA) in lessening the financial burden shouldered by shipping agencies.

DPFZA which is the main authority overseeing the country’s logistics industry had a month or so ago sent a circular indicating a cap on shipping agencies charges at 20 dollars as delivery order fee; to which stakeholders were notified this past week.

In addition to fee cap, the logistics authority has replaced cash deposits with bank guarantees for container and demurrage deposits. The authority has further fixed the exchange rate based on the amount applied by the Djiboutian central bank, which was welcomed as a noteworthy action.

The shipping agencies were reminded that the delivery order tariff, inclusive of all costs, is set at USD 20 per delivery order and per bill of lading for all types of goods.

“This amount should not exceed the aforementioned limit,” the circular underlined.

Logistics participants stated that the fact that separate delivery order rates apply to Ethiopian and Djiboutian freight forwarders was of major discomfort.

Freight forwarders that Capital spoke to claim that shipping agencies have been charged service fees, such as those for clearing containers and port security, which can total up to USD 50.

However, DPFZA has capped these fees at USD 20, which makes it much easier financially for logistics agents in both countries which in turn lower costs associated with these kinds of expenses for the final consumers of goods.

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African Airlines Cargo Volumes Up 2.9% in Oct: IATA Global Demand Increased by 3.8% in October, Capacity Was Up 13.1% Compared to October 2022

African Airlines Cargo Volumes Up 2.9 in Oct IATA Global Demand Increased by 3.8 in October Capacity Was Up 13.1 Compared to October 2022
African Airlines Cargo Volumes Up 2.9 in Oct IATA Global Demand Increased by 3.8 in October Capacity Was Up 13.1 Compared to October 2022

African airlines saw their air cargo volumes, measured in cargo tonne-kilometres (CTKs), increase by 2.9 percent in October 2023 compared to October 2022, according to the latest update from the International Air Transport Association (IATA). Carriers in the region benefited from the strongest annual growth since May (+16.7 percent), the update added. “Capacity, measured in available cargo tonne-kilometres (ACTKs), was 9.8 percent above October 2022 levels.”

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Freight Forwarders Left Confused in Djibouti

Despite the Ethiopian Customs Commission (ECC) intervening in the cargo delay that took place in Djibouti at the end of last month, the freight forwarders from Ethiopia and Djibouti assert that the issues still persists.

According to sources in the Ethiopian and Djiboutian logistics sectors, Djibouti Customs has implemented a new strategy that it claims aims to control under invoicing problems on inbound cargos. Private logistics companies from both nations said that the problem was first noticed in late October. They informed Capital that containerized freight with an invoice of less than USD 20,000 is unable to get clearance from Djibouti Customs.

Freight forwarding businesses state, “The Djibouti Customs says that the new procedure is come from the Ethiopian side rather than the initiative of the Djibouti authority”, adding, “The customs claimed that the cargos with less than USD 20,000 invoice would not be clear on the suspicion of under invoice.”
Ethiopian Freight Forwarders and Shipping Agents Association notified the ECC and other pertinent bodies about the problem a few weeks ago.

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