| Abstract: | The main objective of the study was to assess the ship chartering practices and challenges in
Ethiopia Shipping and Logistics Services Enterprise. Descriptive research design was used to
describe the current situation of the study area, and qualitative method was used to collect the
primary data gathered through in depth interview and secondary data documents has taken from
annual reports of the enterprise. The target population covered both the internal and external
customers and they were selected by using expert purposive sampling method. Next to that, the
demographic data were analyzed using STATA software and also the secondary and interview
data were used qualitative data analysis. The result indicated that, there are three types of
chartering practicing in Ethiopian Shipping and Logistics Service Enterprise such as voyage
charter, time charter and the contract of affreightment. The main reasons, ESLSE to chartered
vessels are because of cargo load capacity, specialization of vessels, unaffordability of ports,
limited number of vessels, cargos available in ports, low liner cargo demand and not to being
vessels idle. Due to having good vessel schedule with the voyage planning, provision of
affordable freight rate, having better knowledge about the shipping terms and conditions, good
communication, availability of international cargo suppliers and government support most of the
trends of bulk cargos shipped in Ethiopia were being showed progress from year to year. On the
other hand, the bad weather condition, port/birth congestion, international freight rate
fluctuation, weak ICT infrastructural development, fluctuation of cargo demand and supply,
taking long time in decision making and cargo/vessel delay are found to be among the most
critical challenges of ship chartering in ESLSE. |
