In 2022 and 2023, international trade in goods was expected to grow faster than in the past ten years. We realized an above-average positive development in in Africa and other Parts of the world. However, the recent crises in the world such as the Covid-19 pandemic and the Ukrainian war have shaken the world greatly. Such crises mean a lot to world trade since they have come with stranded business deals, ever hiking fuel prices across the world, to mention but a few.
What is the future of trade and freight forwarding in Africa?
With African countries directing their efforts towards improving agriculture and industrialization, the future of trade in Africa looks to be greener than in the past years. But with the global economy increasingly shaped by geopolitical and climate imperatives, how can the continent best advance its development goals? This implies that the world trade Organization is at a point where it needs to take a closer look in the current economic trends and answer the questions that deal with global economies, evaluate their current status and their future prospects in what can be termed as vision 2040. To do so will require looking beyond the traditional mandate of the World Trade Organization to drive trade liberalization as the highest priority. While discussion has increased around climate, consensus even on first steps like reducing tariff barriers for green products–has remained elusive.
A few years ago, African countries concluded, adopted, and ratified the African Continental Free Trade Agreement (AfCFTA). AfCFTA represents a remarkable achievement in that it seeks to make trade policy a key tool for economic transformation in the continent and shows impressive diplomatic coordination and political cooperation across the continent. With such movements, what effect does it have on the Freight and forwarding industry across Africa and the whole World? It means that there will be high traffic in transportation of goods across borders and seas. This will be as a result of mass production of goods especially agricultural products.
What is the future of World trade in Regards to Covid-19 and the Ukrainian war?
According to the DHL World Trade Atlas Research across many countries indicates that much as the world has been hit but such crises that is the Ukrainian war and Covid-19 pandemic, things are not the way we expected them to be when it comes to world trade. Things seems to be the direct opposite due to increase in E-commerce and other many additional factors. The post Covid-19 world trade predictions have been defied in one way or the other. This is what the DHL World Trade Atlas has got to say, “Each economic crisis seems to cause people to question the resilience of globalization and trade. Covid-19 and the war in Ukraine have triggered renewed uncertainty. But the data tells a different story. The Atlas shows us that trade in goods has surged to as high as 10% above pre-pandemic levels. And it highlights the power of commerce to accelerate growth, lower prices, and diversify sources of critical imports. With inflation at multi-decade highs and economies slowing down, global trade is now more crucial than ever.
Analysts have downgraded trade growth forecasts in the wake of the war in Ukraine, but the most recent projections call for trade to grow slightly faster in 2022 and 2023 than over the preceding decade. They also expect it to modestly outpace GDP growth, which underscores the role of international trade in the world economy. In addition, the robust cross-border ecommerce growth we have seen in recent years should continue, which means more players will gain access to international markets.”
What is the impact of globalization on Word trade?
As the world continues to become a global village due to advancement in technology, trends in world trade continue to shift as well. For instance back in the days, trade was had to be done while the seller and the buyer are in physical contact. The distance had to be close. Unlike these days when social media platforms such as Facebook, twitter, Instagram, LinkedIn, WhatsApp, Skype, to mention but a few have made trade easier and easier. The world has come closer meaning trade can be done in a blink of an eye. This implies that trans-border trade will continue to advance in both developed and developing countries in the coming years. Recent statistics indicate that in the past years trade in Sub-Saharan countries has grown at a faster rate than the previous years.
What does this mean to Freight and forwarding Industry?
Globalization which has increased trans-border trade is a call for Freight and forwarding companies to tighten their belts. This is because as the people draw near to each other, a lot of business transactions happen and this includes freight goods. The challenge is that there is likely to be an increased demand on the side of freight companies which may require a lot of speed and flexibility in the day to day operations of the business. Being a sensitive industry, Freight and forwarding companies may need to revise their strategies, ways of doing work, methods of transportation and improve on customer / public relations. This is because in such a business atmosphere there are limited or no room for errors at all. Any mistake you make, you are will be singing songs of “Had I known.”
CONCLUSION
In conclusion, therefore Love Uganda Logistics (LUL) continues to emphasize that Freight and forwarding industry has a duty to look beyond trade and evaluate the emerging economies as they continue to race forward, especially in connectivity and innovation. There is need to realize that countries are becoming increasingly successful in exporting of sophisticated capital, intermediate, and consumer goods. These countries have also significantly increased on the rate at which they import raw materials. The present power of globalization, innovation and technological advancement is changing trade of goods from just quantity into quality goods meaning that Freight and forwarding companies have got to be more sensitive in their day to day operations in order to ensure smooth running of the business.
Overview
The freight forwarding process simply refers to the flow of shipment and goods from two destinations carried out by a freight forwarder such as Love Uganda Logistics (LUL). It is important for businesses and other organizations to know what really happens during the trans-border transportation of goods from one destination to another. Shipping items in and out might is usually an opportunity for businesses to grow and expand both locally and internationally, however, it can become very complex easily. It is this nature of the logistics’ complexity that calls for freight forwarders to come and intervene.
Who are freight forwarders?
The best word that can describe freight forwarders is “Middlemen” during cargo shipping whether on land, air or water. They are the ones responsible for shipping much as they do not do the shipping themselves. This is why freight forwarders should have the knowledge of the forwarding process because any mistake may see the entire company down. It’s important that they understand international trade, the regulations of trade and how to ship on behalf of a company that requires shipment throughout the world.
The primary objective of freight forwarders is ensuring that clients’ goods are transported and delivered on the specified date. It is them that face all the expenses and challenges between the time of pickup and the time of delivery. These may include documentation, taxes, packaging, sorting, to mention but a few.
Why is it Important to use freight forwarders to transport my goods?
Transporting your goods using freight forwarding companies may seem costly yet it is one of the cheap ways of doing so. This is because it takes away the burden of undertaking the transportation process by yourself. The process involves quite a number of stages each with unique activities such as documentation, packaging, etc. These process are time consuming and may not be of help especially to businesses. Failure to use freight and forwarding companies means that you will do the job yourself. Having a transportation agency (freight forwarder) gives you more time to concentrate on your business. Because of their rapport with government and other service agencies, they are able to get work done smoothly, besides getting favorable rates, schedules, etc. They also ensure movement of goods from one point to another in the most cost-effective way.
What are the major stages of the freight and forwarding process?
Different countries have different laws governing entry and exit of goods. However, some of these rules and regulations / guidelines cut across.
Generally, freight forwarding process is made of 6 major stages and these include;
- Export Haulage
- Items checkpoint
- Export Customs Clearance
- Import customs clearance
- Destination Arrival And Handling
- Import Haulage
Stage one: Export Haulage
This is the beginning stage in the freight forwarding process. It involves movement of goods from a shipper’s location to the freight forwarders’ warehouse. Depending on the distance, the nature of the goods and the geographical location, goods can be transported using a truck or train. This stage does not have a specific length of time it takes. It can range from a few hours to few weeks depending on the nature of goods and their location. At this stage, the major parties involved are the forwarder and the owner of the goods (Client or business owners).
Stage two: Items Checkpoint
This stage follows export haulage stage and it involves the freight forwarder checking thoroughly to confirm whether all goods were transported without incident. It also depends on the nature of goods. Forwarders confirm if goods are in the right shape, color or size. Counting also takes place. The major party involved here is the freight forwarder.
Stage three: Export Customs Clearance
After the foods have been counted and confirmed as have been transported in stage two, the next thing to do is clearing with the relevant bodies at the Export Custom Clearance department in the country of their origin. This happens before goods are shipped off. Customs brokers are the ones who usually do this activity. The process involves a lot of documentation specifying the nature of the cargo and their destination. It is a very sensitive process. It is at this stage that an agreement between the shipper and consignee is reached. If a freight forwarding company does not offer this service, it is required to find a third-party Customer broker service. From this stage, goods are now good to go whether by land, air or water.
Stage Four: Import Customs Clearance
This is more like stage three but the difference is that goods are now imports in another country. The stage involves relevant documentation and confirmation that goods have arrived in a new country. Goods can be cleared even before their arrival depending on the speed of the forwarder. This is where dealing with professional forwarders such as Love Uganda Logistics makes a difference. They help your goods through these stages as in the shortest time possible since they have agents all over their areas of operation.
Stage Five: Destination Arrival and Handling
Upon arrival of the goods, they undergo quite a number of other sub-stages or processes. At this point, freight forwarders will receive all documents for the cargo, including outstanding documentation, carrier bills and more. The major party involved here is the Freight forwarder.
Stage Six: Import Haulage
This is the last and final stage during cargo or freight forwarding process. The stage is almost similar to stage one but the difference is that in the first stage the parties involved were the sender and the forwarder whereas here, it is the receiver and the forwarder who are involved. The stage involves the forwarder transferring goods from the warehouse to the receiver’s destination. The forwarder may choose to deliver them at the receiver’s doorstep or the receiver can pick them from the warehouse. The goods are now no longer in the hands of the forwarder.
Conclusion
The above stages involve an outline of how goods are transported from one destination to another using freight forwarding companies such as Love Uganda Logistics. The forwarder is responsible for advising the consignee about which way to go, which routes to take for example air, land or water. This depends on the nature of goods and their destination.
Why worry about freight forwarding in Uganda?
Looking for the best clearing and forwarding companies in Uganda, look no further. By the time you read to the bottom of the page, you will have had a clear picture of what clearing and forwarding in Uganda is like.
On a daily basis, billions of goods are transported into and outside Uganda. Where there is a human being, there is logistics. We do not move with our companies but we move with goods produced by the companies. All this is made possible by the outstanding power of logistics. In developing countries like Uganda, freight forwarding and cargo transportation is not yet a well-developed business sector.
However, with the advancement in technology, increase in population and the world becoming a global village, the logistics business is no longer a question of if but when. With the emergency of logistics companies such as Love Uganda Logistics, there is a need for everyone to understand what clearing and forwarding is like in Uganda. This is why we have taken the time to elaborate more about clearing and forwarding in Uganda. It is high time you learned about what being a clearing and forwarding agent means. You will know the reason why business exporters use clearing and forwarding agents. Additionally, we’ll let you know more about the functions of clearing and forwarding agents. And this is to mention but just a few. Let’s take you there.
What is clearing and forwarding in Uganda like?
Clearing and forwarding simply means the process of loading goods or cargo and transporting the goods or cargo from one location to another. It involves the loading and offloading of goods. The work is done by clearing and forwarding agents such as Love Uganda Logistics.
Who is a clearing and forwarding agent?
A clearing and forwarding agent is an expert (usually a company) that deals with clearing goods from the time they are picked up from the sender, goes through the legalities related to their transportation, coordinates with the carrier, does the shipping, and then delivers the goods to their destination.
Not everyone can go through the hustle and bustle of shipping goods from one destination to another. The activity is hectic in a way that it contains a lot of documentation, carrying the goods – remember some of the goods are perishables while others are dangerous ones. This is where the clearing and forwarding agent’s expertise comes into play.
What is the function of a clearing and forwarding agent? What are the duties of a clearing agent?
- Preparing needed documents.
- Ensure quick clearance and safe delivery of goods.
- Experienced customs team.
- Air and Sea Clearance.
- Ground handling at the airports/seaports / borders.
- Special customs procedures such as temporary entry and re-exporting.
- Arranging necessary documentation relevant to customs facilities.
- Bonded storage
- Container loading/off-loading
- Cargo handling
- Packaging / Wrapping
- Non-bonded storage
- Cold storage
- Commercial documentation services and legal consultancy
- Following releasing procedures up to delivery.
Are clearing and forwarding agents private entities?
Yes, clearing and forwarding agents are usually private entities and registered companies. However, governments can also have clearing and forwarding agents across the world. They can even be joint ventures or groups of companies.
Can I register a clearing and forwarding company in Uganda?
How do I register as a clearing agent?
Yes, like any other company, you can have a clearing and forwarding company registered with the Uganda Registration Service Bureau (URSB). A good example is Love Uganda Logistics Limited. The company can be part of registered associations in Uganda. All you need is to meet the company registration requirements as guided by the Uganda Registration Services Bureau (URSB).
For more information about company registration in Uganda, Click here.
What is the process of clearing and forwarding?
Stage one: Export Haulage
This is the beginning stage in the freight forwarding process. It involves the movement of goods from a shipper’s location to the freight forwarders’ warehouse. Depending on the distance, the nature of the goods, and the geographical location, goods can be transported using a truck or train. This stage does not have a specific length of time it takes. It can range from a few hours to a few weeks depending on the nature of goods and their location. At this stage, the major parties involved are the forwarder and the owner of the goods (Client or business owners).
Stage two: Items Checkpoint
This stage follows the export haulage stage and it involves the freight forwarder checking thoroughly to confirm whether all goods were transported without incident. It also depends on the nature of the goods. Forwarders confirm if goods are in the right shape, color, or size. Counting also takes place. The major party involved here is the freight forwarder.
Stage three: Export Customs Clearance
After the foods have been counted and confirmed as having been transported in stage two, the next thing to do is clear with the relevant bodies at the Export Customs Clearance department in the country of their origin. This happens before goods are shipped off. Customs brokers are the ones who usually do this activity. The process involves a lot of documentation specifying the nature of the cargo and its destination. It is a very sensitive process. It is at this stage that an agreement between the shipper and consignee is reached. If a freight forwarding company does not offer this service, it is required to find a third-party Customer broker service. From this stage, goods are now good to go whether by land, air, or water.
Stage Four: Import Customs Clearance
This is more like stage three but the difference is that goods are now imported from another country. The stage involves relevant documentation and confirmation that goods have arrived in a new country. Goods can be cleared even before their arrival depending on the speed of the forwarder. This is where dealing with professional forwarders such as Love Uganda Logistics makes a difference. They help your goods through these stages in the shortest time possible since they have agents all over their areas of operation.
Stage Five: Destination Arrival and Handling
Upon arrival of the goods, they undergo quite a number of other sub-stages or processes. At this point, freight forwarders will receive all documents for the cargo, including outstanding documentation, carrier bills, and more. The major party involved here is the Freight forwarder.
Stage Six: Import Haulage
This is the last and final stage during the cargo or freight forwarding process. The stage is almost similar to stage one but the difference is that in the first stage the parties involved were the sender and the forwarder whereas here, it is the receiver and the forwarder who are involved. The stage involves the forwarder transferring goods from the warehouse to the receiver’s destination. The forwarder may choose to deliver them to the receiver’s doorstep or the receiver can pick them up from the warehouse. The goods are now no longer in the hands of the forwarder.
How can I become a clearing and forwarding agent in Africa?
Becoming a clearing and forwarding agent in Africa requires commitment, discipline, and investment in terms of finance. Africa is an area that is growing economically. This implies that the moment you join the business when you are not fully prepared, it might be a nightmare for you. It is important that you do enough research and have a talk with experts in the logistics business for better and more reliable advice.
What kind of job is clearing and forwarding?
A clearing and forwarding job is a rewarding job that gives you an opportunity to connect with businessmen and businesswomen from different parts of the world. Much us the job looks like something too sensitive, but it is one job that has a lot of chances for networking.
How much does a clearing and forwarding agent earn?
The question of earnings depends on the size of the company and how much operations it does in a given period of time. Like any other business clearing and forwarding agents depend on the amount of successful deals for them to be able to earn.
Who can be a clearing agent?
Becoming a clearing and forwarding agent is not rocket science, it is rather a business like any other. As long as you have the requirements such as capital, documentation, etc. you can be a clearing agent like Love Uganda Logistics Limited.
Is clearing and forwarding a good career?
Yes, Choosing clearing and forwarding as a career is a good decision since the field is an engaging one. It is a challenging career that presents better opportunities for growth. The career involves international business, diversity, and interaction with people from all corners of the world. It is generally a platform for networking worth undertaking.
What is the difference between a clearing agent and a forwarding agent?
The forwarding agent has an obligation to see that the cargo/goods are forwarded according to the instructions of the exporter. Whereas, a clearing agent arranges to pass the concerned documents at customs.
Why do exporters need the services of clearing and forwarding agents?
While cargo transportation can be done individually, doing it when you have got large quantities of exports might be challenging. This is the reason why exporters opt for clearing and forwarding agents. The agents are given the responsibility of going through the hustle of clearance which includes documentation, tax payments, loading and offloading, and shipping, to mention but a few.
The beauty of using clearing and forwarding agents for exporting goods is that they take the burden off your shoulders.
How to choose a clearing and forwarding agent in Uganda?
Easy steps to choose a logistics company.
Even when you decide to transport your cargo through freight and forwarding agents, getting the right agent might be challenging. But worry not, below are some of the things that you should look out for before deciding which logistics company you are to use.
Registration status
It is important that you confirm whether the clearing and forwarding company is fully registered with the government and other international bodies. You do not want your cargo to fall into the wrong hands. Check whether the agent has operational licenses, permits, and certificates that are not out of date
An active website
In the present world, a website is the starting point for one to prove the authenticity of the business. It is on the website that you will get detailed information regarding the clearing and forwarding agent. On the website you can get the right contact details such as email address, and phone number, to point out but a few.
Active social media platforms
With the world becoming a global village, social media platforms have taken the limelight and emerged as one of the major marketing platforms across the world. An authentic clearing and forwarding agent should have an active social media presence. The most common platforms are Facebook, Instagram, Twitter, LinkedIn, Pinterest, and WhatsApp, to point out but a few.
Check for the services offered
Not every clearing and forwarding agent does it all. It is better you transport your cargo knowing that it will be delivered to its destination when you want it. It is therefore important that you be sure whether the agent does all the activities. Remember some agents act as brokers.
Check for references and previous reviews
No one does not want to work with a reputable company. You should look out for what the previous customers have got to say about the forwarding agent you intend to use. The reviews do not have to be a lot but a company with 3 stars is good to go. Ensure to check the age of the company – the longer the time the company has been in existence, the more the number of reviews should be available.
Check for the company’s broker bond
Freight and forwarding companies are required to have broker bonds. It is important that you know about it before doing any business with such a company. You do not want to get nightmares while transporting goods overseas.
Check for insurance
A reliable freight forwarding company ought to have an insurance policy in its dealings. When you get on the road, the probability of getting an accident is always half. This implies that your cargo has to be insured otherwise you will incur a loss.
Conclusion
There is no business that wishes to do business and incur losses in the logistics. All this comes as a result of making poor choices when dealing with how to transfer your cargo from one location to another. Love Uganda Logistics is here to solve all your clearing and forwarding problems in Uganda and Africa as a whole. Whether it is overland, overseas, or air freight, we are here for you. We can’t wait to do business with you.
