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A Strategic Hub Amidst Red Sea Tensions

The ongoing Red Sea crisis, triggered by attacks on commercial vessels by Houthi rebels, has significantly disrupted global trade. However, Djibouti, strategically located at the Bab al-Mandab Strait, has turned this challenge into an opportunity by emerging as a safe logistical hub for maritime operations.

Why Djibouti Matters

Djibouti’s strategic location on the Gulf of Aden, controlling access to the Red Sea, has made it a crucial transit point for global trade. Before the crisis, the Suez Canal handled 30% of global container traffic, transporting around 12% of world trade. Since December 2023, disruptions have reduced traffic through the canal by 37%, leading to increased demand for alternative routes.

With shipping companies avoiding the Suez Canal, Djibouti has experienced a 10% increase in port activity in early 2024. The Doraleh Container Terminal, one of Africa’s largest, is handling an increasing number of cargo shipments. Djibouti now sees 90 ships per day passing through its waters, with 59% of these vessels arriving from Asia and 21% from Europe.

A Military and Economic Powerhouse

Djibouti also hosts multiple international military bases, including those of the United States, France, China, and Japan. These bases generate €128 million annually, contributing to 3% of Djibouti’s GDP. The U.S. military presence alone accounts for €56 million per year. This military presence enhances maritime security, making Djibouti a trusted port for global shipping companies.

Despite security concerns, Djibouti has capitalized on the crisis, increasing port activity and solidifying its role as a key trade gateway for landlocked countries like Ethiopia and South Sudan. Ethiopia alone relies on Djibouti for 90% of its imports, further strengthening the country’s economic position.

Looking Ahead
As tensions in the Red Sea persist, Djibouti remains essential in maintaining global trade flow between the East and West. With its growing logistics sector, advanced port infrastructure, and strategic location, it is well-positioned to become Africa’s leading maritime hub in the years to come. 

 

Mandatory BESC Certification for Shipments to Djibouti

For all shipments to Djibouti, obtaining a BESC (Bordereau Électronique de Suivi des Cargaisons) is a mandatory requirement.

The R&C Desk offers end-to-end support to facilitate a smooth certification process and assist with the issuance of the final certificate within a short timeframe.

For personalized assistance, please contact the R&C Desk.




Sources

lanation.dj | nos.nl
Image by R&C Desk

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