Council Approves FoB Directive to Improve Logistics Sector’s Efficiency

ADDIS ABABA – The National Logistic Council has approved a new Free on Board (FoB) Directive in a bid to improve efficiency of Ethiopia’s Logistics sector.

The Council, established earlier this year to resolve challenges in the sector, held its meeting on Thursday to discuss the ongoing efforts to transform the sector.

“In a continued effort to transform Ethiopia’s logistics sector, our session of logistics council meeting highlighted on efforts carried out in breaking the monopoly of multimodal operators & allowing to have upto 5 operators thereby encouraging competition & improving efficiency,” said transport minister Dagmawit Moges after the meeting.

The council also ratified the FoB Directive which will improve the logistics sector, Dagmawit said.

The move would improve the sector’s efficiency “benefiting our country’s economy and enabling us to attain our improved Logistics Performance Index (LPI) target”, she added.

The LPI is an interactive benchmarking tool created by the World Bank to help countries identify the challenges and opportunities they face in their performance on trade logistics.

The index, which takes into account factors such as including logistics competence and skills, the quality of trade-related infrastructure, the price of international shipments, and the frequency with which shipments reach their destination on time, helps governments benchmark their progress over time and in comparison to similar countries.

Germany is the most efficient and highest ranked LPI country while Ethiopia is ranked 131 out of 167 countries as per the aggregated LIP 2012-2018.