Ethiopian Shipping and Logistics (ESL) announces its intention to increase the number of ships at the main Ethiopian cargo lifts in order to fill the void created by certain international operators who are downsizing their fleet to the Red Sea.

According to the firm, vessels operating in Djibouti have reduced their activities and, in some cases, completely suspended their operations at the main port for Ethiopian goods due to security concerns in the Red Sea region.

ESL reports that large ship operating firms, who have slot agreements with ESL to carry import cargoes, have scaled back on their trips to Djibouti and some have even ceased operations.

“As a result, the company has increased the number of vessels it operates in ports where Ethiopian cargo is lifted,” ESL said in a statement released on Wednesday.

Regarding the export industry, ESL stated that Ethiopian cargo, especially the transportation of coffee beans, has encountered difficulties due to inadequate ships loading from Djibouti.

Exporters are encouraged to use these routes since “our vessels have a regular fleet to Chinese ports in Tianjin and Shanghai (Taicang), Jebel Ali and Sharjah of the United Arab Emirates, and Mundra and Nhava Sheva ports in India.”

Using its own ships, ESL has sent 401 TEU containers to ports in China, India, and the United Arab Emirates in the first nine months of the current budget year. Equipped with 10 ships, ESL is the sole deep-sea vessel operator in Africa.

Some Ethiopian-based businesses use the Mombasa port in Kenya due to security concerns in the Red Sea and Gulf of Aden, even though its operating costs are greater than those of Djibouti given its distance from the center in Ethiopia.

Ethiopian coffee, which is the major source of hard currency for the country, exporters assert that it is difficult to deliver their goods on time for their clients due to the most recent problem, which happened in November of last year on a vital waterway in connection with the Houthi attack in Yemen.

They said that the shortage of ships that lift goods from Djibouti was the reason the cargo became trapped there.

It is also claimed that the decrease in vessel arrivals has made it harder to find enough empty containers.

Maersk, one of the largest logistics companies globally, has reversed its previous decision to suspend operations in Djibouti. In a statement, the company explained that it had previously cancelled all reservations to and from Djibouti due to the situation in and around the Red Sea.

“We are writing to provide you with an update on our latest findings,” the statement continued, announcing that Maersk is once again accepting new bookings for travel to and from Djibouti.

“The situation in and around the Red Sea / Gulf of Aden, including the Bab-El-Mandeb strait, remains volatile, with all available intelligence indicating a considerable security risk,” the statement added. “Nevertheless, we are pleased to announce the reopening.”

This week, Ethiopian Shipping and Logistics expressed concerns about the security situation in the sea, stating that several large vessel operators have reduced their trips to Djibouti and others have halted their operations. This has had an impact on Ethiopian cargo imports and exports.

Maersk had previously announced in late January that it would cease operating the Blue Nile Express (BNX), a service that crosses the Red Sea en route to Djibouti. Due to concerns about maritime security, the Danish container shipping company had temporarily suspended reservations for its BNX service to Djibouti from Asia, the Middle East, Oceania, East Africa, and South Africa.

Abdillahi Adaweh Sigad, CEO of SGTD, recently emphasized to Capital that Maersk is a major client of the largest container terminal on the East African coast. He argued that both commercial and security perspectives should be taken into account in these matters.

While Maersk has discontinued one of its services, the CEO of SGTD questioned the rationale behind their actions. He explained that Maersk claims to be concerned about being targeted for security reasons, and given the political motives of those obstructing traffic, it is understandable that they are among the primary targets. He acknowledged that incidents have occurred in Somalia before reaching the Red Sea and the Indian Ocean. Therefore, Maersk’s priority is the safety of its sailors and avoiding any risks associated with these areas.

NBE has officially introduced NEWFin, an innovative initiative aimed at reducing the gender gap in leadership roles within Ethiopia’s financial sectors to enhance women’s financial inclusion.

Developed in collaboration with the World Bank, the network seeks to increase women’s involvement in the finance sector, fostering an environment conducive to their contribution to the country’s economic growth.

The launch of NEWFin was celebrated at the NBE/Gender Innovation Lab Conference on March 28, 2024. Efforts to enhance women’s inclusivity in finance have been ongoing since the end of 2021, with the implementation of a comprehensive financial environment strategy. According to Mamo Mihretu, Governor of NBE, Ethiopia is committed to creating an inclusive financial environment that ensures equal participation and utilization by both men and women in the financial sector.