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Shortage of ships subjects traders to wanton losses

Friday October 01 2021
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The scarcity of shipping vessels bringing goods via the Dar es salaam port is exposing Rwandan importers and manufacturers to losses. PHOTO | CYRIL NDEGEYA

By MOSES K. GAHIGI

The shortage of shipping vessels bringing goods through the Dar Es Salaam port is exposing many Rwandan importers and manufacturers to losses.

Covid-19 restrictions globally have disrupted the flow of goods, leading to delays and scarcity.

Local importers say delays are hurting sales as some have limited access to raw materials.

For instance, Vishal Shah’s company Rwacom group manufacturers plastics, mostly Jerry cans, they import raw materials which they use to make plastic products to serve their customers who normally pay in advance.

But for months now they can’t meet orders because the raw materials they ordered have been delayed. “We ordered a container of raw materials in June and up to now we have yet got the goods, normally it would take one month, the turn over time has changed, this has affected our trading cycles and left us in losses.” “There are not enough vessels coming to Dar Es Salaam because they are overbooked, shipping companies reduced ships to mitigate coronavirus infections causing this problem,” said Vishal.

He said in the last four months alone they have lost up to $300,000 in revenues because of these glitches. “These delays have made it hard to predict the prices in the market, by the time you order the next container you have already made losses on the one that is on the way without knowing because a lot has changed within that time” “Some clients have taken back their money, now we have to take loans to pay this money even with interest” he noted.

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The same pains are felt by importers of a wide range of goods, from clothing, irrigation equipment and packaging materials.

Shipping charges, as well as prices of goods from countries of origin, have shot up, which has been passed onto the final consumers.

One meter of cushions for making sofas which were sold at Rwf2800 before the pandemic now goes for Rwf4200, while a TV set that went for Rwf350,000 now goes for Rwf500,000, while there are some goods or brands that have completely disappeared from the market.

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