Freight Forwardingin Tanzania

Tanzania, positioned at the eastern bend of Africa, plays a pivotal role in regional freight forwarding. It serves as a gateway for landlocked countries such as Uganda, Rwanda, and Zambia, enabling them to proficiently re-export their cargo across the Indian Ocean. This article will explore the purpose and significance of freight forwarding within the Tanzanian context, the challenges it faces, and the practical best practices thriving in the sector. Additionally, the recent investments in infrastructure and the persistent implementation of thoughtful policies have both increased the efficiency and boosted the throughput of Tanzania’s freight forwarding sector.

Within the last decade, freight forwarding has rapidly developed to become part of the country's economy, contributing about 10% to the Gross Domestic Product. This rose to a highly active trade frontier with key imports from China, India, and South Africa, while the highest value of exports heads to Switzerland, India, and the United Arab Emirates. The centre of this active trade frontier is at the port of Dar es Salaam, where the majority of the country's import and export deals are professionally handled.

The infrastructural problem faced by the freight forwarding industry in Tanzania is crucial, especially as regards road and rail networks. Bad roads and poor rail connections may delay transport and increase the cost, hence interfering with the efficiency and reliability of the freight operation.

In most instances, it is always a challenge for freight forwarding companies in Tanzania to clear customs; with complicated procedures added to bureaucratic delays, waiting is usually costly and for a long period. These challenges, therefore, underpin the need for streamlining processes and improving stakeholder coordination.

Another disturbing issue is the shortage of qualified personnel in freight forwarding, coupled with the complete absence of specialised courses and training that also impacted operation efficiency and poor service delivery. Firms must therefore continue to invest in training programs in an attempt to fill the gap in practical skills.

To navigate the challenges and succeed, freight forwarders in Tanzania should adopt several best practices:

In Tanzania, freight forwarders are meant to be licenced by BRELA; this involves the filing of necessary documents, which are not limited to business plans, company structures, and financial records.

Any intending freight forwarder shall obtain a licence from the TRA. This is quite important, as it enforces domestic laws and grants firms the right to organise customs clearance for their customers.

The freight forwarders must follow international set standards such as the IATA regulations. These are quite crucial for their observance because they differentiate their legitimacy of operation and actualise safe transportation practices.