Business owners in the import-export sector are hopeful the price adjustment will be in their favour to turn things around as shipping rates show a significant drop, slashing the prices of Ethiopian Shipping Logistics (ESL).

The new list of prices was revealed a month after the new management under Berisso Amalo (PhD) replaced Roba Megerssa. The adjusted prices show a decline of as much as 183pc, as routes unclog back to pre-pandemic periods and global consumer spending.

Executives attribute the price slash to decreased international prices, while ESL seeks to play its part in managing the inflation rate, which stands at 33.7pc in the country.

"It'll definitely impact local prices," said Demsew Benti, communications director.

ESL has been the country's flagship logistics company for six decades, travelling to over 327 seaports. It had quadrupled in price during the pandemic due to container shortages and plummeting production from China, accounting for most of its market share. Asia imported 63.5pc of all goods into the country last year.

The company amassed a little over 5.6 billion Br in profit through its shipping, freight forwarding, trucking, and dry port services. The expanded portfolio of services emerged from a merger of four different enterprises that coalesced over time, with the latest consolidation being Comet Transport Share Company in 2016. Listed among Ethiopian Investment Holding (EIH) companies, it now manages nine dry ports and 11 vessels, transporting over seven million metric tonnes annually.

The executives have observed a monthly demand shift in the new payment schedule.

"There is definitely increased traffic after cutting prices," Demsew told Fortune.

Experts estimate that the surge in shipping costs during 2021 added about two percentage points to global inflation.

A study published last year on shipping costs and inflation presented to the Centre for Economic Policy Research suggests that rises in shipping costs impact lower-income countries more severely than developed ones. It looked at the economies of 149 countries and suggests that when shipping costs rise, the local-currency price of imported goods goes up almost immediately, with 90pc of the increase transmitted within two months.

Industry players are looking to turn a corner by taking advantage of the price adjustment that will impact the market.

The rates differ for each country, with an average 40pc decline for a 20ft container observed. The largest rate decrease is from selected ports in India, with rates falling by as much as 183pc for a 40ft container. Chinese shipments have declined by 47pc for 20ft containers and 64pc for 40-foot containers.