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ISCOS Achievements |
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In pursuit of its mandated objectives, ISCOS has made several achievements some of them being beneficial to the Member States economies
and the rest specifically benefiting shippers (Exporters and Importers). The achievements so far made are summarized as follows:-
- Creation of a formal platform for undertaking consultations with stakeholders for the adoption of common position by contracting parties on maritime matters and/or in multilateral negotiations with third party countries or international and regional maritime organizations;
- Centre of excellence for Consultation/negotiations with shipping lines over general rate increases (GRI) contract freight rates for the carriage of mail cargo by sea, bunker and fuel adjustment factors (CAFs) Ports/terminal handling charges (THC's) Vessel Delay Surcharges (YDS) etc.) which has led to stabilization of the ocean freight rates;
- Reduction or removal of unfair and unsubstantiated pricing mechanisms often used by the liner shipping operators;
- Promoted various bodies, and activities which are likely to facilitate the development of the maritime and inland waterways sectors and in particular, getting early warnings on shipping matters, and provided with statistical and economic analysis of the maritime transport and inland waterways sectors;
- Sensitization Maritime stakeholders on appropriate use of International Commercial Terms (INCOTERMS) and best practice in maritime transport;
- Developed and strengthened national shipper associations in the member states;
- Participating in intra-regional cooperation for each category involved in maritime transport: shipping companies, ports and port operators, shippers, clearing and forwarding agents, cargo consolidators, etc through ISCOS as one stop centre;
- Enhanced cooperation between the national maritime administrations with a view to harmonizing and improving the operating conditions of the entire maritime transport system in the region;
- Defined and well advised contracting parties regarding sector based policies and common standards in the fields of shipping services, port operations and modalities of servicing landlocked countries;
- Well advised contracting parties regarding vessel inspection activities with the view to improving the safety of shipping and protection of the marine, rivers and lakes environment;
- Promoted, articulated and co-coordinated effective partnership between governments and private sector in enhancing investment in and management of deep-sea, coastal, multimodal, and inland waterways services;
- Well advised contracting parties on commercial implications of the maintenance of the safety and security of maritime transport services including matters relating to integrated coast guard services , port state control and joint search and rescue operations;
- Sensitized contracting parties on matters of development of human resources, gender matters in shipping and HIV Aids scourge and any other pandemics in the maritime sector;
- Assisted contracting parties in adopting/acceding to the relevant maritime conventions, particularly those concerning safety of life and property at sea, carriage of goods by sea, oil pollution, marine environment protection, ship and port facility security;
- Coordinated and facilitated shipper organizations in freight cost consultations/negotiations with terminal and transport operators;
- Coordinated and promoted the development of the maritime transport sector within the region and its integration into African region as a whole;
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Other achievements include: |
+ Fighting surcharges in Mombasa and Dar es Salaam ports(1978-2003)
Fighting Surcharges
Synopsis of ISCOS achievements in fighting surcharges in Mombasa and Dar es Salaam ports in the period 1978-2003
| Conference/Line |
Claim |
Amount Claimed |
Applied afterwards |
| South & East Africa/USA |
VDS in Dar es salaam |
15% since 1978 |
Suspended in 1981 |
| East Africa/Middle East |
VDS in Khoramshah |
15% since 1979 |
Withdrawn in 1979 |
| EA/Middle East |
VDS at Narsrah |
15% June 1979 |
Abolished in 1980 |
| EA/FEFC |
VDS in East African ports |
15% 1979 |
Removed 1979 |
| Shipping Corp. of India |
VDS |
20% 1979 |
Removed May 1979 |
| EACL |
VDS |
5% 1979 |
Withdrawn June 1979Removed May 1979 |
| Shipping Corp. of India |
VDS at Bombay |
25% wef 1980 |
Reduced to 7% Aug 84 |
| EACL |
THCs in East African ports |
Various in 1989 |
Banned in Tanzania ports in 1994 but still on in Kenya |
| EA/Pakistan lines container lines agreement |
Rate differential on the port of Dar es salaam |
US$ 100 @ TEU |
Withdrawn in 1994 |
| EACL |
Tanga port additional surcharge |
US$ 50 @ TEU |
Withdrawn in 1994 |
| EACL |
VDS on EA ports |
KPA US$110 THA US$ 90 @ TEU |
Withdrawn 1994 |
| CMB-T |
VDS on THA |
US$ 120 @ TEU |
Not applied |
| EA/FEFC |
VDS on Mombasa port |
US$ 120 @ TEU |
Suspended in 2000 |
| EACL |
VDS on Mombasa port |
US$ 70 @ TEU Wef 1.3.2004 |
Suspended in 1.4.2004 |
+ Monetary benefits from ISCOS work on freight costs in 2002
Benefits from ISCOS work on freight costs
Estimating monetary benefits from ISCOS work on freight costs in 2002
| Item |
Kenya |
Tanzania |
Uganda |
Zambia |
Remark |
Regional indices
Less:
Indices in ISCOS states |
12.4%
11.5% |
12.4%
11.7% |
20.7%
9.6% |
20.7%
13.3% |
UNCTAD estimates
UNCTAD estimates |
Differential CIF
Imports US$ (millions) |
0.9%
2053 |
0.7%
1707 |
11.1%
964 |
7.4%
1123 |
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| Savings US$(millions) |
18.7 |
11.95 |
107.0 |
83.1 |
Total 220.75 |
Source: Calculated from various Reports UNCTAD Review of Maritime Transport
+ Accrued benefits amongst ISCOS member states, 1998-2002
Analysis of accrued benefits amongst ISCOS Member States, 1998-2002
| Activity |
Kenya US$ |
Uganda US$ |
Tanzania US$ |
Zambia US$ |
Others US$ |
Total US$ |
| Removal of VDS on exports to far East, July 1999 |
324,700 |
119,426 |
99,550 |
Nil |
23,875 |
477,510 |
| Removal of VDS on imports from far East, June 2000 |
641,561 |
235,868 |
18,869 |
Nil |
47,173 |
943,473 |
| Suspension of VDS on Mombasa port by CMB-T in 1998 |
1,158,682 |
425,989 |
34,078 |
Nil |
85,197 |
1,703,945 |
| Suspension of VDS on Dar port by CMB-T January 1999 |
15,510 |
82,720 |
206,800 |
87,890 |
124,080 |
517,000 |
| None application of THCs in THA ports |
31,104 |
174,187 |
2,755,232 |
167,960 |
248,800 |
3,377,310 |
| Removal of VDS by EACL on Mombasa port, April 2004 |
10,010,000 |
661,500 |
Nil |
Nil |
283,500 |
19,460,000 |
| Savings on freight rates |
18,700,00 |
107,000,000 |
11,950,00. |
83,100,00. |
Nil |
220,750,000 |
| Total benefits derived US$ |
30,691,000 |
108,829,000 |
15,954,000 |
83,358,000 |
812,000 |
239,762,000 |
Source: Calculated from various Reports UNCTAD Review of Maritime Transport
+ Value added due to ISCOS's activities 2002
The monetary benefits from ISCOS work on freight costs in 2002 and accrued benefits amongst ISCOS Member States(1998-2002)
indicates the monetary benefits that accrued to the ISCOS Member States as well as the rest of the sub-region due to ISCOS?
activities for the year 2002. In that year, the gross total savings retained in the economies of the sub-region were US$ 239.7 million.
The benefits that accrued to the ISCOS member States were US$ 238.7 million, comprising of US$ 30.7 million, US$ 108.8 million, US$ 15.9 million
and US$ 83.4 million accruing to the economies of Kenya, Uganda, Tanzania and Zambia respectively.
In the same period under review, the budget estimates for running ISCOS?s activities was only US$ 70000 per
Member State or a total of US$ 280000 for the four Member States. Therefore, assuming that all Member States paid their contributions to ISCOS,
the value added for maintaining ISCOS?s activities was US$ 238.4 million. The savings are summarized in the table below.
Value Added due to ISCOS?s activities 2002
| Country |
Gross Savings US$ |
Budget 2002/3 US$ |
Net savings US$ |
| Kenya |
30,691,000 |
70,000 |
30,621,000 |
| Uganda |
108,829,000 |
70,000 |
108,759,000 |
| Tanzania |
15,954,000 |
70,000 |
15,884,000 |
| Zambia |
83,358,000 |
70,000 |
83,288,000 |
| Others |
812,000 |
Na |
812,000 |
| Total |
239,962,000 |
280,000 |
239,482,000 |
Source: Calculated from various Reports UNCTAD Review of Maritime Transport
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