Export Trade Logistics Determinant Factors: The Case of Ethiopian Major Export Products

Abstract

The purpose of this study was to identify salient factors influencing Ethiopian Export Trade Logistics (ETL) and the significance of each factor in hampering competitiveness. It focuses on unilateral international trade, export trade logistics of some selected export items: coffee and oilseeds. Explanatory research design was used. In this research, both primary and secondary source of data were utilized through questionnaire and interview. A combination of sampling techniques (cluster, purposive and random) and data analysis tools (Multi variant and factor analysis) were utilized based on the nature of data and respondents. According to the Factor Analysis, the determinant factors of Ethiopian ETL performance are transport operation system, telecom and ICT services, terminal facilities and operation system, technological and administrative capabilities of institutions, and regulatory frameworks of logistics, particularly transport operations. Infrastructural limitation is common to almost all of ETL factors. Predictability and reliability of SC have imposed a significant impact on exporters’ competitiveness. The time variation ranges between 15-30% depending on availability of stock. On the other hand, the Order Preparation takes longer time than clearing shipment via all legal processes in Ethiopia and the transit country- Djibouti. Out of international logistics costs freight costs significantly vary ranging between 25-40%. At every joint of ETL there would be either infrastructural (hard/soft) or communication disconnections of the ETL.

Keywords: Trade Logistics, Reliability, Predictability, Export Trade Logistics