Major types of Freight Forwarding Transportation.
Freight forwarding in Eritrea plays an important role in the country’s supply chain management, using many shipping methods to meet different cargo requirements. Sea freight remains the dedication of logistics freight forwarding, with the Ports of Assab and Massawa handling bulk goods such as IT hardware, machinery, and aviation products through containerized and bulk carrier shipments. Air forwarding services, mainly through Asmara International Airport, provide a faster difference for advanced and time-sensitive cargo, such as medical supplies, aviation goods, and electronics. Road freight is a necessary part of cargo forwarding services, confirming inland transportation from ports to warehouses, manufacturing centers, and client markets. Trucking services also simplify regional trade with neighboring countries by confirming Incoterms and customs regulations, including HS codes for the proper categorization of goods. Although rail freight is not yet fully developed in Eritrea, there are likely future infrastructure projects that could improve connectivity and freight forwarding services, specifically for trade with inland nations such as Ethiopia. These transportation modes collectively support the efficiency and growth of freight forwarding services in Eritrea, increasing supply chains and confirming the smooth motion of goods.
How does freight forwarding work In Eritrea?
Freight forwarding in Eritrea follows an official global process but has specific alternatives due to the country’s laws. The logistics freight forwarding process begins with the arrangement between the exporter and importer, where a freight forwarder works as a mediator, managing shipping methods, shipping routes, and paperwork while confirming approval with harmonized system codes (HS codes) for taxes. When a delivery is prepared, the freight forwarding administration books policies for sea, air, or road, overseeing important desk work such as bills of landing, requests, press records, and customs cycles to enhance smooth communication. During shipment, the freight forwarding administration handles the movement of goods by monitoring, confirming exchange regulations, and developing warehouse organizations. Customs concession is a crucial step at Eritrean ports or air terminals where cargo forwarders use exchange identities such as the Generalized System of Preferences (GSP) to reduce fees, making the delivery cycle more cost-effective. Information on Incoterms is important at this stage, as they indicate the responsibilities of buyers and traders in international trade. After concession, the goods are shipped to their designated destination using road or air forwarding services, ensuring fast and timely transportation.
Insights of IT, Aviation, medical, and Automotive Industry in Eritrea.
The growth of various sectors in Eritrea has greatly changed the freight forwarding industry, with Progress in Information Technology (IT) playing an important role in increasing communication and tracking systems. Digital policy and automated systems now allow freight forwarding companies to track cargo live, increasing efficiency and improving cargo forwarding services. In aviation, continuous improvements in Eritrean airports have growing air forwarding, specifically for high-value and medical goods such as vaccines, and medical equipment, growing the need for a dependable medical supply chain. The automotive sector also heavily depends on freight forwarding services, as imported vehicles and parts arrive through ports before being distributed to dealerships or assembly plants. The HS Code confirms an arranged customs process, while Incoterms like DAP (Delivered at Place) help explain the roles between buyers and vendors in global trade. With this growth, Eritrea’s freight forwarding business is developing to fulfill the growing demands of different industries.
DID YOU KNOW?
In 2023, Eritrea exported goods worth an estimated US$500 million. In 2023, Eritrea imported goods worth an estimated US$0.52 billion.
