DHOW TRADE BETWEEN THE UAE AND SOMALIA

C O N F I D E N T I A L SECTION 01 OF 02 DUBAI 006939

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/7/2016
TAGS: ECON EWWT PGOV PINS AE SO
SUBJECT: DHOW TRADE BETWEEN THE UAE AND SOMALIA

REF: A. DUBAI 06881, B. DUBAI 06884

DUBAI 00006939 001.2 OF 002


CLASSIFIED BY: Paul R Sutphin, Consul General, Dubai, UAE.
REASON: 1.4 (b),(d)



1.(C) Summary: Nearly 25 large wooden motor dhows regularly
carry cargo between Somalia and the ports of Ajman and Dubai
creek in the UAE. The dhows carry a wide variety of general
cargo to Somalia, usually returning with Somali wood and
charcoal. UAE customs oversight of exports via dhow is lax.
Somalia-bound cargo is arranged through specialist agents. End
summary.

2.(C) Commercial cargo dhows sail regularly between Somalia and
the ports of Dubai Creek and Ajman in the UAE. Dhows that load
cargo in Dubai creek sail to the ports of Bosasoa and Berbera in
northern Somalia, while dhows sailing from Ajman call at Kismayu
and small ports in southern Somalia.

3.(C) The majority of cargo dhows sailing between the UAE and
Somalia are registered in Gujarat, India and have Indian crews.
A few Pakistani-registered and -crewed dhows also sail to
Somalia. According to the crews, these dhows work UAE-Somalia
trade routes exclusively and rarely return to their countries of
registry.

4.(C) Dhow crews estimate there to be up to 25 dhows sailing
regularly between the UAE and Somalia, ranging in size between
500 and 700 tons. Though registered as "motor sailing vessels,"
MSVs, all of them are "launches" and are powered solely by
marine engines. Of the dhows observed on the Dubai creek, the
Indian dhows sailing to Somalia are some of the largest and the
best-maintained.

Cargo
--------------
5.(C) Dhows sailing from Dubai for northern Somalia carry a wide
variety of goods, including lumber, lubricants, tires, vehicle
and machinery parts, complete vehicles, bulk and processed
foodstuffs, consumer electronics, and durable goods. Tires for
automobiles and trucks are, by volume, the largest observed
cargo shipped to southern Somalia.

6.(C) Dhows arriving in the UAE from Somalia mainly carry bagged
charcoal and wood. Livestock, primarily goats and sheep, is also
shipped from Somalia, but this trade has diminished greatly over
recent years.

Customs Oversight
--------------
7.(C) Dhows arriving from Somalia are subject to inspection by
the customs authorities of the emirates of Dubai and Ajman, as
are dhows loading cargo for shipment. The areas where dhows load
in Ajman and Dubai are uncontrolled areas accessible to the
public (reftels A and B).

Shipping Agents
--------------
8.(C) Most shipments to northern and southern Somalia are
arranged through shipping agents who specialize in cargo bound
for Somalia. According to one of the agents, a Somali who has
resided in the UAE for more than 30 years, there are four or
five agents in the UAE who book cargo on dhows for Somalia. The
use of shipping agents for Somalia bound cargo is not the norm
for dhows loading on Dubai creek (ref B).

Cost of Voyage
--------------
9.(C) The freight for a voyage by a 500 ton launch from Dubai to
the northern Somali port of Busasao was quoted between AED
105,000 and 120,000 (USD 28,600 to 32,700). The vessel's master
said that the actual price would be based on the cargo and the
expected weather.

Length of Voyage
--------------
10.(C) A voyage between Dubai and the ports of Berbera or
Busasao in northern Somalia normally take 8 days. During the
summer voyages can stretch to two weeks if there are unfavorable
winds.


DUBAI 00006939 002.2 OF 002


11.(C) Comment: Due to the ongoing unrest in Somalia and lack of
adequate port facilities in the country, the current level of
dhow traffic between the UAE and Somalia is expected to continue
for the foreseeable future.
SUTPHIN