CLEARING AND FORWARDING IN TANZANIA
Introduction to clearing and forwarding
Clearing and forwarding agents are individuals or companies that are responsible for arranging the
transport of goods from one place to another. They handle the various logistical details involved in
moving goods, including customs clearance, arranging for transportation, and coordinating the various
logistical details involved in moving the goods. Clearing and forwarding agents provide a full range
of services to ensure that goods are transported efficiently and in compliance with all relevant
regulations. (Pierre, A.D: 2013).
Freight, it is the term used to refer cargo. Generally, they are goods or products to be transported,
mostly for commercial gain, by ship or aircraft, although the term is now expanded to intermodal train,
van or truck, also refers to the sum paid for carriage of goods or payable for hire of space to move the
goods. In this context however, the term freight will be used to mean cargo. It is a global requirement
under World Trade Organization that the governments take responsibility to control cargo moving in
and out of their countries. Individual countries have therefore put in place procedures through which
all cargoes crossing their border must adhere to. These procedures entail cargo declarations,
documentations, verification and approvals prior to movement.
Custom clearance, this is a process of seeking authority to move cargo in or out of a country by
complying with set procedures and requirements. In Tanzania, The Tanzania Revenue Authority (TRA)
is the overall mandated body overseeing freight clearance and it is a requirement under the EAC Acts
that all unaccompanied baggage entering or leaving the country must be manifested and cleared with
customs (Tanzania Revenue Authority, 2004).
Freight forwarding, is the logistical arrangement, organization and monitoring of transported goods
from a supplier or manufacturer to the intended recipients, internationally through single or multiple
carriers by air, marine rail or highway. This include:
 Tracking shipments
 Filling documents for customs clearance
 Warehousing
 Negotiating freight rate
 Scheduling cargo space
 Consolidating freight
 Supplying cargo insurance
1
TERMS USED IN CLEARING AND FORWARDING
The following are some terms that used in clearing and forwarding process (Rostom, A.and Walker,
S. 2007).
Freight forwarder, is an agent who acts on behalf of importers, exporters or other companies or person
to organize the safe, efficient and cost-effective transportation of goods
Customs agents, are persons or companies licensed by the commissioner of customs to Act on behalf
of the importers and exporters.
Consignee, a person or company to whom commodities are shipped. This can be the importer.
Consignor, a person or company shown on the bill of landing as the shipper. Also referred to the
exporter
Consignment, is the process by which a person gives over something to the care of another party,
retaining full ownership until the property is sold.
Customs is the government authority or agency in a country responsible for collecting tariffs and for
controlling the flow of goods into and out of a country. For example, Tanzania Harbours Authority
(THA) and The Medicine and Medical devices Authority (TMDA).
Custom invoice, is the document that travel with a parcel and contained information about the items
inside that parcel.
Custom bounded warehouse, is the warehouse licensed by the commission of customs for the storage
of goods imported into the region pending the payment of duties. (Branch, A :1997).
Custom entry, is the declaration or document which is provided by logistic company or an authorized
person to a custom authority when goods are imported or exported overseas. (Branch, A:1997).
LEGAL AND INSTITUTION ORGANS FOR CLEARING AND FORWARDING IN
TANZANIA
Tanzania there are many legal and institution organs for clearing and forwarding, below are the 10 best
clearing agencies and forwarders for 2021
Clearing Agencies & Forwarders in Tanzania (Tanzania lists. Com, 2023)
 Marinair Freight Ltd.
Contacts of Clearing and Forwarding Companies in Tanzania
Madina Clearing & Forwarding Agencies Ltd
Address: 112 Kiungani Street Dar es Salaam TZ, 6121, Tanzania
 Em Clearing and Forwarding Co Ltd.
2
Address: 331/36, 2nd Floor, Exporters Building, Mkwepu Street, Dar es Salaam 76540, Tanzania
 Bravo Logistics Tanzania Limited
Address: Plot 62 Kurasini, Mandela Road, Dar es Salaam 38387, Tanzania
 MFL Clearing and Forwarding Company
Address: Rita tower, Simu St, Dar es Salaam, Tanzania
 Forwardair Ltd
Address: Dar es Salaam, Tanzania
 Network Consul Logistics Company Limited
Address: P.O Box 19089 Dar es Salaam, Dar es Salaam, Tanzania
 Simba Clearing & Freight Forwarding
Address: Makunganya St, Dar es Salaam, Tanzania
 Huper Tanzania Limited
Address: Block 3 Plot 175, Jamhuri St, Dar es Salaam, Tanzania
 Al Sharqi Tanzania Ltd
Address: 4th Floor, Elite City Building 33504, Samora Ave, Dar es Salaam, Tanzania
 Dow Elef International
Address: Saba Saba Ground, Plot No.11A, Maonyesho Avenue, Kilwa Road, Temeke, Dar es
Salaam, Tanzania
 Arya Logistics Ltd
Address: Aggrey Street, P.O. Box 920, Dar es Salaam, Tanzania
 Walmax Freight Forwarders Co Ltd
Address: Sokoine Drive Pamba Road Dar es Salaam, 00000, Tanzania
CLEARING AND FORWARDING FUNCTION AND OPERATION
They are divided into two parts with accordance to service provided; (Pierre, A.D. (2013).) The
functions and processes of clearing and forwarding involve a range of activities that are essential for
the transportation of goods. These include:
 Customs clearance: This is the process of obtaining permission from a country's customs
authority to import or export goods. Clearing and forwarding agents are responsible for
preparing and submitting the necessary documents and paying any applicable duties or
taxes.
 Arranging for transportation: Once goods have been cleared through customs, clearing
and forwarding agents are responsible for arranging for transportation. This can include
3
coordinating with freight forwarders and other logistics providers to ensure that goods
are transported to their destination in a timely and cost-effective manner.
 Coordinating logistics: Clearing and forwarding agents are responsible for coordinating
the various logistical details involved in moving goods, including arranging for
inspections, obtaining licenses and permits, and preparing shipping documents such as
bills of lading and invoices.
 Compliance with regulations: Clearing and forwarding agents are responsible for
ensuring that goods are transported in compliance with all relevant regulations, including
customs laws, transportation laws, and health and safety regulations.
 Handling of documentation: Clearing and forwarding agents are responsible for handling
all the necessary documentation required to clear goods through customs and transport
them to their destination. This can include bills of lading, invoices, packing lists, and
other documents.
 Communication with clients: Clearing and forwarding agents maintain communication
with their clients throughout the process of clearing and forwarding, providing updates
on the status of the shipment and addressing any concerns that may arise.
 warehousing and storage: Clearing and forwarding agents may also be responsible for
storing goods in bonded warehouse before customs clearance and distribution
 Handling of freight charges: Clearing and forwarding agents also handle the calculation
and payments of freight charges, which includes arranging for payments, negotiation of
rates and tracking of payments
 Risk Management: Clearing and forwarding agents must also be aware of any risks that
may arise during the transportation of goods, such as theft or damage, and take steps to
mitigate those risks.
CLEARING AND FORWARDING AGENT
Clearing and Forwarding Agents (CFAs) are persons licensed by the Commissioner for
Customs and Excise Department to carry on the duty of processing documents and clearing goods from
customs control on behalf of the importers/exporter.
Clearing and forwarding agents are a link between the owners of goods and owners of means of
transport. They help the cargo owners in the efficient movement of goods to the buyers by completing
some procedural and documentary formalities. They are experts and knowledgeable in laws and
regulations governing shipment of goods through the customs authorities as well as in commercial
practices, especially the ones concerning transport. Since they are in constant touch with various
4
government officials, they keep themselves abreast with the developments in the field of their activity
factors of attaining national development
Clearing and forwarding agents are individuals or companies that are responsible for arranging
the transport of goods from one place to another. They handle the various logistical details involved in
moving goods, including customs clearance, arranging for transportation, and coordinating the various
logistical details involved in moving the goods. Clearing and forwarding agents provide a full range
of services to ensure that goods are transported efficiently and in compliance with all relevant
regulations.
Some of the key responsibilities of clearing and forwarding agents include:
 preparing and submitting the necessary documents for customs clearance
 arranging for inspections and obtaining licenses and permits
 coordinating with freight forwarders and other logistics providers to ensure that goods are
transported to their destination in a timely and cost-effective manner
 preparing shipping documents such as bills of lading and invoices
 ensuring that goods are transported in compliance with all relevant regulations
 communicating with clients to provide updates on the status of the shipment and addressing
any concerns that may arise
 handling freight charges, calculation, payments and tracking payments
ESTABLISHING A CLEARING AND FORWARDING IN TANZANIA
The general requirements for a person to be registered as Clearing and Forwarding Agent (CFA)
To apply for CFA a person must submit to the Commissioner for Customs and Excise Department the
following documents (Tanzania Revenue Authority (TRA), 2023);
 Taxpayer Identification Number (TIN) Certificate for the Company (for new applicants only)
 Taxpayer Identification Number (TIN) Certificate for each Director (for new applicants only)
 VAT Registration Certificate, if any (for new applicants only)
 Current Tax Clearance Certificate showing tax position for the current year
 Certified copy of Memorandum and Articles of Association of the Company (for new
applicants only)
 Certified copy of the Certificate of Incorporation and Business Name Registration Certificate,
where applicable (for new applicants only);
5
 A recent passport size photograph (not more than one megabyte) of directors and staff duly
certified by a Notary Public or an Advocate (for new applicants and for renewal only where
there are changes);
 A certified valid identification document for each of the persons referred to in (vii) above i.e.
National Identification Card issued by NIDA or Passport (for new applicants and for renewals
where there are changes)
 Letter(s) from guarantor(s) confirming renewal of bond securities (for renewals), or a relevant
Customs bond security (for new applicants prior to issuance of license)
 A certified copy of title deed or lease agreement for a suitable office for the company which
should be equipped with computing facilities capable of connecting to the Tanzania Customs
Integrated System (TANCIS) – to be subjected to verification prior to granting of license;
 Non-existence of any outstanding Customs matter i.e. Audit query, abandoned TANSADs,
outstanding transit transactions or any other unresolved Customs issue (for renewals)
 A letter from the Business Registration and Licensing Agency (BRELA) stating the current
status of the company’s Directors and Shareholders; (for new applicants and for renewal where
there are changes);
 Other required conditions while applying for CFA:  Application for both NEW and RENEWAL of licenses will be received and processed online
through TANCIS.
 New Applicants:
 New applicants for Customs Agency Licenses will be required to comply with the following:  Obtain Company password which will be needed during the process of application.
PASSWORD APPLICATION FORMS number F-ITD-067-B is available on TRA Website i.e.
www.trao.tz.
 Payment of non-refundable application fee of fifty (50) US dollars. Training program to New
applicants will be conducted as will be specified in the advertisement
 Have at least two employees in charge of clearance with diploma, certificate in customs training
from a recognized institute or a minimum of five years’ experience in customs operations.
 Submit an introduction letter in duplicate affixed with passport size photograph of one
competent staff who will represent the Company in the Interview containing email address and
telephone contact
 Submit two copies of introduction letter affixed with passport size photographs of a competent
staff that will represent in the interview. The letter should also contain e-mail address and
telephone contact
6
CLEARANCE OF IMPORTED GOODS IN TANZANIA
Clearance process, includes accepting and checking the goods declaration against the
documents produced (invoice, bill of lading, and certificate of origin, permits and others),
examination of goods if necessary and the assessment and collection of duty and VAT. Customs
may require additional information and also request samples. Clearing of imported goods in
Tanzania involves different stages or procedures either online or offline.
Import procedures must be followed to clear goods as per the East African Community
Customs Management Act (EACCMA) 2004. Imports to Tanzania are subjected to different
stages whereby the importer is advised to make declaration through his Clearing and
Forwarding Agent by lodging documents at least 7 days before arrival of the vessel, the
importer is required to appoint a Licensed Clearing and Forwarding Agent (CFA) to clear
goods. Documentation process is done online through Tanzania Customs Integrated System
(TANCIS) for imports and exports and can be completed before arrival of the goods, Customs
agents lodge the documents in the clearance system, i.e. Tanzania Customs Integrated System
Mainland and Zanzibar, attaching all other relevant import supporting documents. The Agents
are urged to lodge such documents at least 7 days before arrival of the goods. Clearing of
imported goods in Tanzania involves different stages or procedures either online or offline. As
follows
1.Lodge custom documents, the importers or agents are required to lodge their documents at
least seven (7) days before the arrival of the goods through Tanzania Customs Integrated
System (TANCIS), also the clearance system automatically rejects the incomplete declaration
or declaration having insufficient descriptions.
Requirements
 Clearing agent's authorization letter for customs (original)
 It should be in the letter head of the company, allowing the authorized representative to act on
behalf of the trader.
 Tax Identification Number certificate
 For companies or registered business names
 Certificate of origin
 Commercial invoice
 Packing list
 Bill of lading
7
 Import procedures must be followed to clear goods as per the East African Community
Customs Management Act (EACCMA) 2004. Imports to Tanzania are subjected to different
stages whereby the importer is advised to make declaration through his Clearing and
Forwarding Agent by lodging documents at least 7 days before arrival of the vessel.
 The importer is required to appoint a Licensed Clearing and Forwarding Agent (CFA) to clear
goods
 Documentation process is done online through Tanzania Customs Integrated System
(TANCIS) for imports and exports and can be completed before arrival of the goods
 Customs agents lodge the documents in the clearance system, i.e. Tanzania Customs Integrated
System Mainland and Zanzibar, attaching all other relevant import supporting documents. The
Agents are urged to lodge such documents at least 7 days before arrival of the goods.
2.Pay custom levy
This duty is charged on specific goods and services manufactured locally or imported on varying
rate .it is charged in both specific example winne, spirits, beer, soft drink and ad volorem rates
.example electronic communication, money transfer services, pay to view television services,
aircraft.
3. Request for consignment inspection
The agent request for the inspection of the consignments that has been imported
4.Cargo inspection and obtain release order
This is the stage where inspection of consignments is conducted with the respective authority, the
verification officer will witness the stuffing (loading) of the container. Upon successful verification, a
customs seal is used to lock the container and the verification officer will give the consignment an
online
5.Lodge cargo documents
In this stage the agent loge cargo documents to the respective authority (TPA)
 Requirements;
 Bill of landing
 Delivery order from the shipping line
 Release order
6.Pay port charges
The import goods are subjected to storage charges seven days after the arrival of the cargo at Dar es
Salaam port.
Requirements;
 TPA revenue invoice (original)
8
 Expected result; stamped bank deposit slip
 Legal justification; Tariff Book of Port Dues and Charges (TPA)
7.Create truck or driver announcement
The agent provides the details about the company or person who will be responsible in transporting
consignments.
Requirements;
 Truck details (registration and chassis number)
 Driver details (name and license number)
 Expectation; information
 Legal justification; The Tanzania Harbors Regulations, 1991.
8.taint gate in ticket
This is where the agent gets the permission for the announced truck to enter in the harbors
Requirements;
 Release order
 Delivery order
 Bill of landing
 Stamped bank deposit slip
 Truck registration card
 Driving license
 Physical presence of a driver
 Empty truck
 Expectation results; Gate in ticket
 Legal justification; The Port Act, 2004
9.Cargo collection and security verification
Once the clearance and forwarding agent enter TPA should have TPA authorization letter. Security will
verify the driver against identity. Driver will sign register book to the security officer
Requirements;




Release order
Delivery order
Bill of lading
Gate in ticket
9


TPA clearing and forwarding agent valid ID
Expected results; Loading permission and Gate pass ‘A’
10.Check point and gate out pass
 This is the last stage in which the consignments move out of the port
Requirements;
 Release order
 Delivery order
 Bill of landing
 Gate in ticket
 Loading permission
 Gate pass ‘A’
 TPA receipt
Expected results; Gate out pass
IMPORT DOCUMENTS INCLUDE;
Import Declaration Form
Commonly refers to as IDF, the Import Declaration Form is a commercial form that is obtained from
Revenue Authority and which is applied for and filled by the importer or consignee in consultation
with appointed Forwarder who will engage the port system.
The IDF is the primary document that starts of the Customs clearance procedure for domestic import
cargo, it contains;
 Value of the cargo (to enable Tax caution)
 Quantity of the cargo (hacked up by the Pre-shipment Inspection report)
 Quality of the cargo (backed up by the re-shipment inspection report)
 Cargo classification, harmonized system (HS Code).
Bill of Lading
A Bill of lading specifies the name of the master, the port and destination of the ship, the goods, the
consignee and the rate of applicable freight. It is a document of title and is essential in cargo declaration
and clearance as it serves as a proof of shipment, especially where pre-arrival clearance is being done.
It contains amongst other information:
 Name of the vessel
 Voyage number of the vessel
 Cargo description
10
 Cargo marks and numbers
 Actual number of packages
 Name and Full address of actual Sender
 Name and Full address of actual receiver
 Place of delivery
The basic functions of the Bill of Lading
The Bill of Lading has three basic functions:
 Evidence of the contract of carriage: an evidence of the contract of carriage that is(contract
Between the carrier and the shipper for the transportation of the goods)
 Receipt: a receipt issued by the carrier to a shipper for goods received for transportation, (that
is proof of delivery of the goods on board the vessel and most importantly).
 Evidence of title: evidence of title to the goods (the bill of lading, representing the physical
cargo, proof ownership of the goods in case of dispute and when transferring rights to the goods
in transit by the transfer of the paper document to another party)
The basic functions of the Bill of Lading
The Bill of Lading has three basic functions:
 Evidence of the contract of carriage: an evidence of the contract of carriage that is(contract
Between the carrier and the shipper for the transportation of the goods)
 Receipt: a receipt issued by the carrier to a shipper for goods received for transportation, (that
is proof of delivery of the goods on board the vessel and most importantly).
 Evidence of title: evidence of title to the goods (the bill of lading, representing the physical
cargo, proof ownership of the goods in case of dispute and when transferring rights to the goods
in transit by the transfer of the paper document to another party)
The Delivery Order
Is a document issued by a liner company’s agent authorizing the party named in it to take delivery of
specific cargo from a ship. It is normally issued in exchange for an Original bill of lading.
The Delivery Order commonly abbreviated as DO is also issued electronically by the respective ship
agent to the port authority, confirming that no amounts are owed by the importer and authorizing for
the indicated cargo to be delivered to the named consignee.Without the Delivery Order, the port
authority will not deliver the pertinent cargo.
Customs Entry
A Custom Entry also known as the Single Administrative Document (SAD-under the East Africa
Community Customs Management Act and Customs administration), is a Customs document where
11
declaration of information on imported or exported goods, prepared by a Customs Broker or Forwarder
on a prescribed form called an Entry Form and submitted to the customs.
It states the customs classification number, country of origin, description, quantity, and value of the
goods, and the estimated amount of duty to be paid. If upon examination by a customs officer the entry
is verified as a correct, the goods in question are released (on payment of duty and other charges, if
any) to the importer, or are allowed to be exported.
Certificate of Conformity (applicable to certain goods)
The Certificate of Conformity is a primary document used by Tanzania Bureau of Standards to
ascertain that the product conforms to the standards of Tanzania and to authorize import cargo into the
domestic market. The Certificate of Conformity is required on certain goods such as;
 Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh
Chilled or frozen.
 M6eet of sheep or goats, fresh, chilled or frozen
Packing List
A Packing List is a list issued by the seller or sender of goods and which provides the description of
goods including the package number, description, weight in metric ton, length in meter, width in meter,
height in meter and cubic measurement of all packages. The information provided on the packing list
must match with the details mentioned on the Bill of Lading and the Commercial Invoice.
The Packing List is critical in the Customs clearance process.
Commercial Invoice.
A Commercial Invoice is issued by the sender or seller of goods to the importer or buyer. The
Commercial Invoice provides details (as per pertaining packing list) and indicates the total CIF value
of the consignment. It will provide the exact details as shown on the packing list such as items cost,
freight charges and insurance amount which is duly broken down on each Commercial Invoice.
The Commercial Invoice is also critical in the Customs clearance process for import cargo.
Exemption letter (if applicable)
An exemption letter is a letter given by the Ministry of Finance to a qualified applicant, exempting
payment of import customs duty and or VAT. Charities and governmental organizations, diplomatic
missions, returning residents and others, can apply for exemption of duties and or VAT. This is done
by the receiver writing to the Treasurer. If accepted, the Treasurer instructs the customs not to collect
the waived portion on the particular Consignment.
Exemption letters are usually granted for specific consignments which have to be exactly described
in the application.
Inspection
12
Cargo inspection is very critical in as far as ascertaining the value of the imported goods is concerned
for purposes of determining applicable duty by Customs and for purposes of determining conformity
to domestic standards by Tanzania Bureau of Standards.
The initial inspection of import goods is done at the point of cargo origin where an internationally
reputed and designated inspection company will conduct inspection of the cargo and is an inspection
report.
HARMONIZATION OF TARIFF CODES FOR EAST AFRICA
Harmonized system (HS) is the system of classifying goods in international trade developed by the
World Custom Organization (WCO). It’s used by customs authorities around the worlds to identify
products when assessing duties and taxes and for gathering statistics. The HS continuities to the
harmonization of customs and trade procedures, and the non-documentary trade data interchange in
connection with procedures, thus reducing the costs related to international trade
In EAC the countries have agreed to have the common external tariff in which they generally classify
goods basing on Harmonized commodity description and coding system (version 2012). The system
classified goods in 21 categories (East African Community, 2017);
 Live animals; animal products like meat and edible meat offal, fish and crustaceans, mollusks
and other aquatic vertebrates
 Vegetable products like coffee, tea, mate and spices
 Animal or vegetable fats and oils and their cleavage products like animal or vegetable waxes
 Prepared food staffs; beverages, spirits and vinegars; tobacco and manufactured tobacco
substitutes
 Mineral products like salt, earths and stone, plastering materials, lime and cement
 Products of the chemical or allied industries like inorganic chemical, organic chemical and
pharmaceutical products
 Plastic and articles thereof; rubber and articles thereof
 Low hides and skins, leather, fur skins, articles thereof; saddler and harness; travel goods,
handbag and similar containers; articles of animal guts
 Wood and articles of woods; wood charcoal; cork and articles of cork; manufactures of straw,
of separator and other plaiting materials; basket wear and wickerwork
 Pulp of wood or of other fibrous cellulosic materials; recovered (waste and scrap) paper or
paperboard; paper and paperboard and article thereof
 Textiles and textiles articles like silk, cotton and wool
13
 Footwear, headgear, umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops
and parts thereof prepared feathers and articles made therewith; article flowers; article human
hair
 Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass
and glass wear
 Natural or cultured pearls, precious or semi-precious stone, precious metals clad with precious
metal and articles thereof; coin
 Base metals and articles of base metal like iron and steal
 Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and
reproducers and parts and accessories of such articles
 Vehicles, aircraft, vessels and associated transport equipment like ships, boats and floating
structures
 Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical
instruments and apparatus; clocks and watches; musical instruments; parts and accessories
thereof
 Arms and ammunition; parts and accessories thereof
 Works of arts, collectors’ pieces and antiques
CHALLENGES FACING CLEARING AND FORWARDING IN TANZANIA
Forwarding and clearing are affected by different challenges, this includes (Butler, J:1994):
 Economic Challenges
Apart from the financial challenges, the freight forwarding industry also has economic challenges that
affect its operation.
 Staff Shortage & Retention
Because of the uncertainty surrounding the whole industry, there is a serious issue of hiring and
retention. Due to the seasonal changes, a lot of smaller ships remain docked and only work in seasons
when the sea is not so rough. Because of these reasons, people are afraid to get into this industry,
resulting in a shortage of staff.

Government Regulations
There are continuous regulations that are being imposed on the carriers by the federal, state, and local
authorities. These regulations are stringent, and non-compliance can cost the carriers a lot of
environmental Issues, in addition to the challenges mentioned above, there are also environmental
14
issues to face. Due to pollution and global warming, authorities have created various environmental
regulations that a company must comply with. These regulations sometimes increase the cost so much
that it exceeds the benefits.
 Transport Infrastructure Issues
Even if all the above challenges are under control, there is a huge problem with the transport
infrastructure. Not all the roads and networks used by the transport service are in optimal condition.
Even though most forwarders communicate and share the relevant information regarding the
conditions of the roads and sections, there is still the need to keep the roads in optimal shape. This is
so that the delivery can be on time, and there are no issues like breaking down of the vehicle or the
increase in maintenance cost.
 Ocean Volatility
A lot of the goods are transported through ocean shipping. It is highly unstable because there are
increasing amounts of elements that directly impact the cost. The rates and contracts are always
changing, which results in forwarders not being able to understand their cost structure. This makes it
hard for them to provide their clients with reliable quotes. There are also the climactic changes that
they have to face. The huge tides and waves make it almost impossible to conduct a freight operation.
There are chances of being stuck in the middle of the ocean, or of sinking. Moreover, the threat of
piracy is rampant in some areas and triggers considerable losses to businesses.
 Commoditization
A lot of shippers view transportation as a commodity. They do not give importance to the service but
are just concerned about the prices. This makes it hard for forwarders to differentiate between
themselves and other providers.
 Cost of Forwarding
The common currency that is used for international trading is the US dollar. Daily, the exchange rates
of the US dollar fluctuate. It affects the freight rates as they might change at any time. Not only the
prices of the freight forwarding services are impacted, but it also affects the customers as the price of
goods increases. Also, when expensive payment methods are used like bank transfers, they involve
hefty fees that are added
15
16
REFERENCE
Branch, A. (1997). International Purchasing and Management, Singapore, Thomson Learning,
Butler, J. (1994): Importer’s Handbooks, CIPS Bookshop Services.
Pierre, A.D. (2013). International Logistics: The Management of International Trade Operations 4th
Ed, Cicero Books LLC
Rostom, A.and Walker, S. (2007). International Logistics and Supply chain outsourcing. London,
The Chartered Institute of Logistics and Transport.
Tanzania Revenue Authority (2023)
https://www.tra.go.tz/index.php/clearing-forwading-agents
Tanzanialist.com
https://tanzanialists.com/clearing-forwarding-companies-in-tanzania/
17
18
19