The Red Sea’s security challenges have significantly disrupted cargo flow, according to Abdillahi Adaweh, CEO of Djibouti’s Doraleh Container Terminal Management Company. However, he noted recent indications of an improving situation.
Djibouti’s ports, which facilitate over 95% of Ethiopia’s import and export trade, lie on the Red Sea—a route accounting for 12% of global trade annually. This corridor has faced persistent threats from Yemen’s Houthi rebels since November 2016.
In the past year alone, the Houthis have carried out over 100 missile and drone attacks on commercial vessels transiting the Bab el-Mandeb Strait between Yemen and Africa. Although the rebels claim to target ships linked to Israel, many shipping companies have rerouted to avoid potential attacks.
Speaking at a conference organized by the Ethiopian Logistics Sector Association in Addis Ababa on January 13, 2025, Abdillahi highlighted the severe impact of the Red Sea’s security issues on Djibouti and Ethiopia’s trade. The event emphasized strengthening the Ethio-Djibouti corridor as a critical trade and cooperation route for the region.
“The situation is extremely challenging,” said Abdillahi, adding that unreliable ship arrival times have disrupted operations and affected the Ethiopian business community.
The security crisis has increased transportation costs and caused significant delays for Ethiopian cargo, which averages 12.5 million tons annually through Djibouti. Abdillahi pointed out that these delays stem from the maritime system’s need for security measures rather than inefficiencies in Djibouti’s port system.
Despite these challenges, Abdillahi noted “positive signs” of an improving security situation, though he did not specify details. This optimism aligns with reports of reduced Houthi attacks following a ceasefire agreement between Israel and Hamas.
Elisabeth Getahun, President of the Ethiopian Logistics Sector Association, also expressed cautious optimism. “Things were tense, but with improvements made by Djibouti and shipping companies, we’re seeing better service,” she said.
With continued focus on regional collaboration and maritime security, stakeholders hope for sustained improvements in this vital trade corridor.
Source: Ethiopia Insider
