For the Shippling Lines
How Shipping Lines 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 Shipping Lines must ensure timely return of the container and in good condition in order to secure their investment and continue supplying services.
The Container Guarantee solution covers demurrage, damage and total loss of containers on reimbursement basis. It eliminates the need to put up cash deposit to secure containers and it guarantees shipping lines of full recovery in case of an incidence.
The Container Guarantee is a business-friendly alternative to container deposits that ensures settlement of all shipping line’s obligations related to demurrage, damage, and total loss of container while eliminating the need for shipping line customers to put cash deposit. It safeguards the commercial relationship between the shipping lines and their customers.
The Container Guarantee safeguards the commercial relationship between the shipping lines and their customers.
Deposit Challenges – Shipping Line
- Cumbersome Cash management and Administration of Deposit
- Adversely affect commercial relationships with customers
- Inadequate to effectively mitigate prompt/in-condition return of the container
- Recovery related challenges and limited impact on bad debt
- Misconception that shipping lines contribute to trade and transport facilitation barrier
- Increased container turnaround time due to administrative and financial arrangements affecting container release
Benefits for Shipping Lines
- Prompt settlement of all shipping line’s obligations related to demurrage, damage, and total loss of container.
- Eliminates shipping lines bad debts related to demurrage, damage, and total loss of container.
- Removes the administrative burden of container deposit.
- Service availed to shipping lines free of charge.
- User-friendly online digital system for managing the guarantee’s lifecycle.
- alternative to container deposit for the convenience of shipping lines customers.
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