Why the traditional container deposits is flagged as a trade barrier

Why the traditional container deposits is flagged as a trade barrier

Approximately ninety percent of the world’s goods are transported by sea. Considering the increasing importance of sea transport as main conveyor belt for goods, there are continuous efforts at global and other levels to ensure competitiveness of this mode.

With over seventy percent of the sea freight being containerized, containers are very critical transport units and must be safeguarded and turned around efficiently if the supply chain is to remain sustainable, efficient and fluid. This is a major concern for both the users and suppliers of the shipping services.

There are legitimate concerns. First that delay in return, damage and loss of containers while in the hands of the transport users result in losses to shipping lines and inefficient transport logistics services, inevitably promoting imposition of various requirements such as container cash deposit. Second, the cash deposit suppresses the financial liquidity and competitiveness of the container users and undermines the overall objective of trade facilitation.

In East Africa, like in many other parts of the world, container deposit has been flagged as a trade barrier for these reasons by both private and public sector at national and regional level. This prompted the search for a sustainable solution that addresses the concerns of both the carriers and the container users. Container guarantee is heralded as a sustainable solution that protects the interest all stakeholders.

The Container Guarantee provides a business-friendly alternative to container deposit which is accessible to customs agents, freight forwarders and shippers. The solution entails issuance of guarantee by Viaservice to authorized customs agents, freight forwarders and shippers upon payment of a nominal non-refundable service fee to Viaservice.


Would you like to know more about the Container Guarantee?


Contact details

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

E: info@viaservice-tz.com

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