Djibouti Port would like to present some clarifications for a story titled “Exporters, Logistics operators decry logistical, bureaucratic hurdles in Djibouti,” published in The Reporter on January 4, 2025.
First of all, it is crucial to understand that the export procedures applied to Ethiopian commodities are on the basis of the shipping terms Free On Board (FOB). In such arrangements, the buyer nominates the shipping company to transport the goods to his country. In order to provide flexibility to exporters, buyers often nominate up to three shipping companies, ensuring seamless coordination and adaptability.
The shipping lines apply what’s called ”the cut-off time of 12 hours” in shipping terms. It means that export containers must be positioned at the terminal at least 12 hours before the ship’s scheduled arrival. This is an international rule of operation determined by the shipping lines, not the Port Authority.
While some delays occasionally occur when exporters miss this critical cutoff window, it is important to note that, as is standard practice worldwide, ships do not wait for cargo; rather, cargo waits to meet the ship’s schedule.
Regarding logistical and supply chain challenges, Djibouti Ports recognizes the complexities faced by Ethiopian export cargo. The Ethiopian exporters want to work with the practice of just in time (flux tendu). This current process involves direct transport from trucks to containers and then to ships, which they have difficulties achieving.
When it comes to ”Just in Time,” if the trains and the trucks carrying the export commodities miss the ship schedule, it is not the responsibility of Djibouti Ports. This issue is not new. More than 15 years ago, Djibouti Ports and Free Zones Authority proactively offered free storage in Djibouti’s Free Zone to Ethiopian exporters, allowing for the pre positioning of cargo and ensuring readiness for shipment. Unfortunately, this proposal has not been accepted, and the logistical inefficiencies persist.
Another critical challenge lies in the lack of communication within the transportation process. When Ethiopian export trucks begin their 48-hour journey to Djibouti, there is no communication between the truck drivers, cargo owners, freight forwarders, or shipping lines regarding arrival schedules. Upon arrival, trucks are directed to the PK12 parking area, without proper communication. It is important to emphasize that Djibouti Ports does not intervene in these commercial transactions, as they are managed by the exporters, freight forwarders, and shipping companies.
We are also surprised by the claims made in the article regarding the Bill of Lading. The process surrounding the Bill of Lading is a matter strictly between the exporter’s bank, the buyer’s bank and the shipping line.
Exporters are provided with three original copies of the Bill of Lading by their export bank, provided by the shipping line nominated by the buyer.
Finally, it is worth reiterating that Djibouti’s Ports tariffs have remained unchanged for export commodities for the past 20 years, underscoring our commitment to providing a stable, predictable, and competitive business environment.
The Port Authority is fully committed to maintaining the highest standards in port operations and logistics. While we recognize the challenges faced by exporters, we believe it is essential to address the root causes collaboratively with all stakeholders involved. We remain open to constructive dialogue and partnerships aimed at improving the supply chain’s efficiency and ensuring the seamless movement of goods.
We are ready to offer training to the staff of Ethiopian export companies on international export trade practices, at Djibouti Ports and Free Zones Authority.
Aboubaker Omar Hadi
Chairman of Djibouti Ports and Free Zones Authority