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The Federal Transport Authority said the new Demurrage law, ratified by the House of Peoples’ Representatives will help to save time and reduce the cost of freight.
Authority Director General Kasahun Hailemariam said trucks are forced to wait a long time to load and unload freight due to an inefficient work process. The time wasted loading and unloading freight costs the sector millions of Birr, the Director said.
A test carried out for one year before the endorsement of the law showcased that a truck requires up to 11.5 days on average to travel between Addis Ababa and Djibouti. The new system reduced this to seven days and the transportation costs by seven percent, the Director said.
The Director said the law will also help trucks to travel faster and reduce the time freight stays at ports. Suppliers, companies engaged in loading and unloading freight as well as government agencies will pay fees to compensate the time the trucks wasted inappropriately. The introduction of the law will also help the country to transport import and export items to and from ports within a short time and low cost. This will help the country to save extra expenses pay for port rent. According to the Director, the new Demurrage Law will be implemented as of January 2014.