The smooth flow of goods across borders is essential for a healthy global economy. Last-mile delivery, the final stage of getting products to their destination, plays a crucial role in this process. However, recent developments in East Africa have highlighted potential challenges that can disrupt this critical stage of the supply chain.

The Issue: South Sudan’s New ECTN Requirement

On March 1, 2024, South Sudan introduced a new regulation requiring all cargo destined for the country to be accompanied by an Electronic Cargo Tracking Note (ECTN). This document, which comes with a fee of $350 (approximately Sh46,000 in Kenyan shillings), aims to enhance cargo visibility and improve customs control in South Sudan.

While the rationale behind the ECTN system is understandable, its sudden implementation has caused unintended consequences. Many cargo shipments destined for South Sudan are currently stuck at various Kenyan facilities due to the unexpected requirement. These delays have a ripple effect, impacting last-mile delivery timelines and causing frustration for businesses on both sides of the border.

The Impact on Last-Mile Delivery

The delays caused by the new ECTN requirement can have several negative consequences for last-mile delivery in East Africa:

• Increased Costs:Delays lead to additional storage and demurrage charges for businesses, ultimately raising the overall cost of transporting goods.
• Disruptions in Supply Chains:Delays can disrupt established delivery schedules, impacting businesses that rely on just-in-time inventory management.
• Product Shortages:For perishable goods or those in high demand, delays can lead to stockouts and product shortages at the final destination.
• Strained Relationships:The delays can create tension between Kenyan and South Sudanese businesses, potentially impacting future trade relations.

Finding Solutions

Addressing this challenge requires a collaborative effort from various stakeholders:

• Improved Communication:Clearer communication from South Sudanese authorities regarding the ECTN process and any necessary documentation could help ease the transition and reduce delays.
• Streamlined Implementation:A more streamlined system for obtaining ECTNs, potentially involving online applications or collaboration with Kenyan customs authorities, could expedite the process.
• Reviewing the Fee Structure:Considering a temporary reduction or waiver of the ECTN fee, particularly during the initial implementation phase, could ease the financial burden on businesses.

The Road Ahead

The new ECTN requirement in South Sudan highlights the complexities of international trade and the potential for disruptions in last-mile delivery. While the long-term implications of this policy remain to be seen, a collaborative approach involving clear communication, streamlined procedures, and potentially revised fee structures can help minimize delays and ensure the smooth flow of goods across East Africa.

Read also: GLOBEFLIGHT: EMPOWERING KENYA’S TRANSPORTATION INFRASTRUCTURE

Conclusion

The last-mile delivery logjam caused by the new ECTN requirement in South Sudan serves as a reminder of the interconnectedness of global supply chains. Finding solutions requires not only addressing the immediate challenges but also fostering stronger communication and collaboration between countries to ensure a more efficient and predictable trade environment.

Read also: Cargo destined for South Sudan stuck at different Kenyan facilities