(A representative from the Kenya Shippers Council [extreme left], Omar Kassim, Second Left [Uganda National Chamber of Commerce and Industry], Jad Johnsons Tabule [UCIFA Secretary General] and Lino Criel Icila [UCIFA Member] listen attentively to John O. the Commercial Shipping Manager of KMA)
On Thursday 21st and Friday 22nd August 2008, ISCOS, Kenya Maritime Authority (For Safety and Reliability), and Kenya Shippers Council facilitated an Incoterms 2000 Awareness Workshop at the Ministry of Transport and Works Training School, Kyambogo. Distinguished institutions and companies represented were Uganda Clearing and Forwarding Association (UCIFA), Uganda Revenue Authority (URA), Mukwano Industries, Ministry of Works and Transport (MWT), Ministry of Tourism Trade and Industry (MTTI), Export Promotions Board (EPB), Uganda National Chamber of Commerce (UNCCI), Uganda Railways Corporation (URC) and the ISCOS Secretariat.
The ‘Introduction of Incoterms’ presentation was done by ISCOS while a representative from KMA presented the Benefits and Use of appropriate Incoterms 2000. The vision of Kenya Maritime Authority is “to have in place a dedicated and specialized regional organization to cater for an internationally competitive, safe, secure, economical and environmentally sound regional maritime transport practices”. Its Mission is to Facilitate and Complement efforts of the Member States to: Achieve competitive maritime freight rates; Safe and secure shipping services; Create a conducive environment for Private Sector investment in shipping; Endeavour to implement harmonized shipping policies; Coordinate maritime pollution issues; Encourage the Development of indigenous MTOs; Promote Gender Equality and Coordinate efforts to fight HIV – AIDS and other pandemics. “Incoterms” stands for “International Commercial Terms” devised by the International Chamber of Commerce (ICC). ICC was formed in 1919 to serve world business by promoting trade and investment, open markets for goods and services and the free flow of capital. Organisation has its headquarters in Paris, France. Initially, ICC represented private sector in Belgium, Britain, France, Italy and the United States. The membership has expanded over the years to represent worldwide business organizations in around 130 countries. There are 13 commonly used incoterms – rules of trade logistics that describe the responsibility of the buyers and sellers in delivery of physical goods. In essence, they are definitions and guidelines for sales contracts. They essentially address fundamental issues of cost and risk allocation in total logistics.
For more on the ‘Importance of Incoterms 2000’, contact John Mwanza, ISCOS Secretariat Director of Shipping and Liaison, Telephone: +254 41 470644, +254 722 207940, +254 20 2352936; Fax: +254 41 470643, or Email: iscos@ikenya.com. His personal contacts are Telephone: +254 722 502718, +254 736 758893 or Email: johnmwanza2008@yahoo.com. The ISCOS Secretariat Mail Box is 89112 (80100) Mombasa, Kenya.
“You will have a lead time if you take charge of the logistics …” –Mr. John O., Commercial Shipping Manager KMA gave the presentation.
Incoterms erase misunderstandings between the buyers and sellers. Incoterms focus on responsibilities. They deal with insurance of risks between buyers and sellers.
After KMA’s presentation, Omar Kassim – UNCCI - filled the gaps by remarking, “… Yesterday, I was having an argument and need to concur that ICD means Inland Cargo Depot and not only a container depot because we find trucks and cargo in there … We need to know more about the Marine Clauses to help traders. They are very protective of the cargo carrier but not the buyer. Insurance should apply its role (in tackling the small risks on the high seas not only on land) … Terminologies such as ‘Inland Haulage’ and ‘On Carriage’ should be featured out.”
The Commercial Shipping Manager KMA responded to Omar’s inquiry by narrating how rules came about, “The Hague Vispy was spearheaded by ship owners. They always look for ways to protect themselves. They picked on terms where cargo owners could not be helped … Then came a different board. The cargo owners sat in Hamburg to discuss rules countries could adopt. They felt they did not need to sit down and pray in situations of natural disasters at sea hence the Hamburg Rules (favourable to cargo owners)
After lunch, comments were made by the Kenya Shippers Council before plenary discussions and a look at the way forward for shipping.
