Sunday, September 27, 2026

Djibouti price surge hits Ethiopian truckers as Yemen war clouds Red Sea trade route

By Samuel Abate

Ethiopian truck drivers transporting goods from Djibouti to Addis Ababa are grappling with escalating costs in Djibouti, while the ongoing conflict in Yemen raises concerns about its potential impact on Red Sea trade and migration.

Berhan Ashete, a veteran truck driver on the Djibouti-Addis Ababa route for over a decade, reports that the recent price hikes have significantly increased the burden on drivers. A single shipment can take 15 to 30 days, during which the cost of food and other necessities has surged. Berhan notes that these rising costs, which began two weeks ago, have put unexpected pressure on drivers without corresponding increases in pay or subsidies.

Solomon Zewdu, Director General of the Ethiopian Heavy Truck Drivers Association (EHTDA), informed Capital that price increases in Djibouti over the past two weeks have severely impacted drivers transporting goods from the port to Ethiopia.

He specified that these increases affect basic goods and services, particularly food and beverages. Solomon highlighted that 100 Ethiopian Birr now exchanges for only about 70 Djiboutian Francs, further exacerbating the financial strain on Ethiopian drivers.

While investors or employers cover transportation fares, drivers are responsible for many of their daily expenses. Solomon stated that “items that used to cost 70 Birr have increased by up to 45 percent,” leading some drivers to now carry non-perishable food to cut costs. The EHTDA is urging investors and employers to consider providing additional allowances or subsidies to drivers.

The conflict in Yemen has also sparked fears regarding the security and stability of the Red Sea trade route, potentially affecting shipping costs, delivery times, and the movement of goods. This route is critically important for Ethiopia, which heavily relies on Djibouti for its imports and exports.

However, Ethiopian Shipping and Logistics (ESL) assured Capital that Ethiopian commercial vessels currently using the Red Sea have not encountered security threats related to the conflict. A senior official, who wished to remain anonymous, confirmed that Ethiopian vessels continue to transport goods through the route alongside ships from other nations. According to the official, the warring parties have not specifically targeted Ethiopian vessels, and there has been no disruption to Ethiopian commercial cargo movement attributable to the conflict thus far.

Conflict Drives Displacement Beyond trade, the Yemeni conflict is also influencing migration and displacement across the Red Sea. The International Organization for Migration (IOM) told Capital that it is closely monitoring developments and coordinating with government authorities and humanitarian partners in both Djibouti and Ethiopia.

“It is difficult at this stage to provide reliable projections on arrivals in Ethiopia,” IOM stated. In Djibouti, IOM is collaborating with authorities and partners to address the needs of people arriving from Yemen, including Ethiopians.

IOM’s Migration Response Centres offer assistance to vulnerable migrants and returnees, including protection support, vulnerability identification, referrals to appropriate services, and other aid based on assessed needs and available resources.

Similar support is provided in Ethiopia through IOM’s Migration Response Centres, in coordination with the government and other partners.

IOM reported that some Ethiopians who were temporarily residing in Yemen while planning to travel to Saudi Arabia have returned to Djibouti and Ethiopia due to the conflict.

According to a ReliefWeb and UNHCR report cited in information provided to Capital, approximately 3,000 people, mostly children, have been displaced from Yemen. The report also indicates that Ethiopia currently hosts about 1.2 million refugees, including 2,312 Yemeni nationals.

Hot this week

Production up, but the ‘cost’ variable weighs heavily

Production is up in 2021 for the Italian agricultural...

Luminos Fund’s catch-up education programs in Ethiopia recognized

The Luminos Fund has been named a top 10...

Well-planned cities essential for a resilient future in Africa concludes the World Urban Forum

The World Urban Forum (WUF) concluded today with a...

Private sector deemed key to unlocking AfCFTA potential

The private sector’s role is vital to fully unlock...
spot_img

Related Articles

Popular Categories

spot_imgspot_img