Groupage operator claims unfair competition on Tanzanian route

THE DIFFERENCE be-tween the terms 'preferred operator' and 'sole operator' has become the centre of an industry dispute.
It has arisen as a result of an FTW article (May 22, 1998) in which it was announced that groupage exports to Tanzania now qualify for a reduced freight rate as a result of a three-party agreement between groupage operator Ecu Line, Durban-based Specialised International Freight (SIF) and the Tanzanian Central Freight Bureau (TCFB).
In terms of the agreement TCFB has appointed Ecu Line as the preferred groupage cargo operator for all cargo destined for Tanzania.
It's unfair competition, claims Jay Maharaj, Durban-based director of another leading groupage operator, Export Consolidated Services (ECS). He is backed by the company's Johannesburg-based director John Covey.
Maharaj states that one of their customers was advised by 'the appointed agent of TCFB' that if the preferred groupage operator was not utilised, then the freight statement would not be issued and would be subjected to penalties.
This is totally unacceptable and the matter is being legally addressed with the agent and the Tanzanian High Commissioner, he says. Shippers and clearing and forwarding agents should be at liberty to use the groupage agent of their choice.
The ECS attorneys have directed this complaint to SIF. In their letter they state:
Our client has heard that you have indicated that all future export groupages must be handled by Ecu Line and that you are to refrain from using other operators. This certainly does not accord with the agreement in terms of which Ecu Line is only reflected as a preferred operator.
Pointing out that the agency agreement has been in force since 1994, SIF director Roy Govender has defended his company's position, but has emphasised that the term preferred carrier does not necessarily imply a sole carrier, which would exclude other operators.
The TFCB through its agents monitors and controls all cargo entering Tanzania. The purpose for this is to ensure that freight rates are market related and competitive.
In terms of our agreement with TCFB, all cargo destined for the Tanzanian market must be booked through ourselves prior to loading, he says.
Should the cargo not be booked through ourselves or if it is shipped without our knowledge, we are not obliged to issue the freight certificate. We scrutinise the documents, and if we are satisfied that the Tanzanian importer is being charged a fair freight rate, we proceed with the issuing of the required Certificate of Ocean Freight.
The TCFB, as our principals, nominated Ecu Line as the preferred carrier as their rates are competitive and they have our own office in Dar es Salaam. But being a preferred carrier does not mean a sole carrier.
The freight rate must be competitive and all groupage operators (Thrutainers International, Atlantic Container Services, ECS and Ecu Line) consolidating cargo to Tanzania are well aware of this.
Govender has stated that any company requiring further informastion regarding the situation should contact Bernard Mbakileki, the Tanzania Central Freight Bureau director general in Dar es Salaam.