Container Guarantee for CFA’s and Shippers
How Clearing and Freight Forwarding Agents and Shippers can benefit from the Container Guarantee
Over 90% of international cargo traffic is transported by sea with over 70% of this containerized. In East Africa of nearly half of imported containers are subject to deposits. To mitigate the risk of delay in return, damage and loss of containers Shipping Lines require container security such as container deposit.
The cash deposit suppresses the financial liquidity, competitiveness appended to the administrative challenges of the container users,undermines the overall objective of trade facilitation. Container deposit has been flagged as a trade barrier for these reasons by both private and public sector at national and regional level.
The Container Guarantee solution covers demurrage, damage and total loss of containers on reimbursement basis. Against a nominal service fee, it eliminates the need to put up cash deposit to secure containers and guarantees shipping lines of full recovery in case of an incidence.
The Container Guarantee is a business-friendly alternative to container deposits and eliminates the administrative burden, improves cashflow for shippers, their agents, businesses and shipping lines which safeguards the commercial relationship between the carrier and shipper/agents.
Against a nominal service fee, the Container Guarantee eliminates the need to put up cash deposit to secure containers
The challenges of CFA’s and Shippers in relation to deposits:
- High cashflow burden
- High cost of doing business affecting competitiveness of SMEs
- Operational & Administrative challenges
- Trade barrier
The benefits for CFA’s and Shippers:
- Facilitate trade and freight transport
- Improve company cash flow
- Reduce the cost of doing business
- Improves container turnarounds and dwell time by facilitating earlier full container release and empty repositioning, thus reducing ancillary costs exposure (.i.e Demurrage)
- Facilitate the access to the profession
- Increase competitiveness of SMEs
- User-friendly online digital system (TOP) for managing the guarantee’s lifecycle
- Decrease administrative burdens
Viaservice Financial Services Limited
7th Floor, Regus Seaport, Amani Place Office Park-Ohio Street, Dar Es Salaam, Tanzania
T: +255 743 643 155 or +255 743 643 137