Ethiopia Remained Dependent on Djibouti Port in 2025/26
Landlocked importers must manage high reliance on a single transit corridor as regional security risks persist.
Updated on Sept. 27, 2026 in Transportation
Live Poll
Is it realistic for landlocked nations to reduce reliance on established, dominant trade corridors?
During the 2025/26 financial year, Ethiopia routed 96.71 percent of its 17.57 million metric tonnes of seaborne trade through the Port of Djibouti. This heavy concentration illustrates the persistent logistical challenges facing the nation as it attempts to diversify its import routes.
Why it matters
Operators face significant supply chain vulnerability due to the country's near-total reliance on a single corridor amidst regional security volatility and Red Sea transit disruptions. These conditions force businesses to absorb higher freight costs and navigate unpredictable logistics bottlenecks.
Ethiopia moved 17.57 million metric tonnes of cargo in the 2025/26 financial year, with 80 percent of freight transported by road. Meanwhile, the underutilized Berbera Port, which holds a design capacity of 500,000 TEUs, currently operates at just 30 percent utilization.
The players
DP World
A global port operator and logistics firm that manages large-scale terminal infrastructure and is currently investing in the expansion of Berbera Port.
Ethiopia
A landlocked nation and major regional economy whose export and import logistics are defined by its dependence on external maritime access.
The details
Ethiopia's reliance on road transport for 80 percent of its freight, combined with the remaining 20 percent handled by the Ethio-Djibouti railway, creates a rigid logistics network. While DP World has committed $442 million to expand Berbera Port’s capacity toward two million TEUs, political disputes and infrastructure limitations keep volume tethered to the Djibouti gateway. International shipping operators continue to bypass the Red Sea, forcing a shift in global maritime transit that exacerbates existing regional corridor pressures.
Timeline
2021: DP World signed a corridor development agreement with Ethiopia.
2023-2025: Red Sea shipping volumes declined by 50 to 55 percent.
January 2024: Ethiopia and Somaliland signed a memorandum of understanding.
December 2024: Turkey mediated the Ankara Declaration.
2025/26 financial year: Ethiopia routed 96.71 percent of trade through Djibouti.
Market Landscape
This concentration of trade volume follows a pattern set by the Ankara Declaration, which attempted to mediate long-standing sovereignty claims between Ethiopia and Somalia. The status quo remains dominated by established Djibouti routes, contrasting with the limited utilization of newer, conflict-sensitive corridors.
Operators managing shipments into the region should build in buffer time for the 80 percent of freight moved via road, given the limited alternatives to the Djibouti gateway. Monitor ongoing security updates in the Red Sea and regional diplomatic negotiations as potential triggers for sudden shifts in freight tariffs and transit corridor availability.
The takeaway
The extreme concentration of Ethiopia's trade in a single port highlights the danger of relying on a sole logistics gateway in a volatile region. Operators should track the planned expansion of Berbera Port capacity as a key indicator for potential supply chain diversification in the coming years.
Further reading
For broader trends affecting supply chains and logistics, visit our Transportation section.
Source note: This article includes information reported by Mereja.
Live Poll
Is it realistic for landlocked nations to reduce reliance on established, dominant trade corridors?
