ABSTRACT

Shipping agencies are very important agents for international trade they book space from local shippers, undertake sales and marketing activities to increase customer base and provides other services like container tracking, documentation, vessel operations, haulage and crew transfers. Therefore, shippers or exporters do outsource their shipping activities to shipping line, shipping agents and freight forwarders. Shipping agencies performs all the activities and operations needed to ensure smooth flow of consignments from country of origin to country of destination. This study aimed at identifying the financial, managerial and environmental constraints faced by shipping agencies.it used a quantitative research design and primary data was collected through questionnaires, the result show that shipping agencies faced with lack of finances, internal conflicts and congestion challenges in the port area.

 Key words: shipping, shipping agent

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

In the world  today , maritime transport has been of the most commonly used mode of transport for the transportation of cargo and persons. Statistics show that , maritime transport account for about 12 billions tons of cargo transported by over 50,000 ships sailing through the ocean and remain an indispensable means of transportation of goods and contribute hugely to the vitality of international trade and economic growth across the world ( UNCTAD 2018). Furthermore, 90% of world wide trade is carried by ships and Shipping activities are the heart of global economy. without  the existence  of shipping agencies or brokers ,there will be no transport of goods globally (kaindoa, 2020).

Ports exist as a fundamental part of trade and transport (Branch, 1986), the latter being a derived demand, which does not exist for its own sake, but rather to serve other economic and social activities (OECD, 2008). All social economic activities related to the arrival of cargo and ships constitute a port cluster, with cargo handling, transport, logistics, manufacturing and trade as core activities (De Langen, 2004).

Shipping as one of the world’s most international industries makes seaborne trade act as a vehicle for the transfer of knowledge and technology. As business has become more international, and newly industrialized countries have taken their place alongside the Organization for Economic Corporation and Development (OECD) countries, the maritime industry has provided the vehicle for an extraordinary growth of trade. This has also led to the progression from a world of isolated communities to an integrated global community (Stopford, 2003).

Shipping agencies are members of the liner (container) transportation or distribution channels. The distribution channel may hire only shipping agencies for long-standing relationships with customers, detainment of existing customers as well as attracting new ones. These duties are deemed highly important due to the fact that they generate the shipping agencies income (Deveci and Çetin, 2013; Cerit and Önce, 1998).

Shipping agencies book space from local shippers, undertake sales and marketing activities to increase customer base and provides other services like container tracking, documentation, vessel operations, haulage and crew transfers. Therefore, shippers or exporters do outsource their shipping activities to shipping line, shipping agents and freight forwarders. Shipping agencies performs all the activities and operations needed to ensure smooth flow of consignments from country of origin to country of destination.

The promotion and regulation of shipping agencies in Africa  has been considered very important in achieving the state’s  economic objectives at sea. In  Tanzania, the Tanzania Shipping Agencies Corporation (TASAC) became self-regulating body in 2017 after enactment of Tanzania Shipping Agency Act 2017 (Kasanda et al, 2018). Lately, Tanzania shipping industry experienced a rapid growth of shipping agencies (Kaindao, 2020). The development of shipping industry in Tanzania and other African countries have motivated the increase of shipping agencies operating within a the continent.

In Cameroon , shipping agency activities can be traced back during colonial rule where shipping agencies were established with the arm of transacting business on behalf of sheep owners .It was so because it was not possible for ships owners and charterers to he present at every point their ships berth at , or observe over every agreement secured for employment because their time was limited if they wanted to expand their business.Therefor the middle ground came informed of shipping agent. Shipping agency could be an individual or a company which transact all business on behalf and under the shipping owner or charterer .

As part ofnthe recommendations of the ministerial conference of West and Central African States  (WECWAS), the Cameroon government resolutely opted for the promotion and control of maritime transport by creating in 1974 the National Shipping Lines CAMSHIPLINES by law 74/19 of 5 December 1974 and in 1984, the National Transport and Freight forwarders Company CAMTAINER (Mintransport.net). In 1975, the Cameroon National Shippers Council  (CNSC) was created with task to negotiate freight rates with liner conferences and other companies serving Cameroon and equally to promote the maritime sector (Mintransport.net ).

1.2 Delimitation

This study is limited to the operations of shipping agencies in the port of Douala and their constraints . The scope of this study  does not take in to consideration other stakeholders at seaport . it is restricted in studying the constraints faced by shipping agencies and how these contraints affect the growth of the shipping agencies. Within this study, thought some stakeholders of the seaport are mentioned, they will not be considered in any analytical purpose . the study was carried out between January 2022 and june 2022.

1.3 Statement of the problem

For many years shipping agencies have been playing an important role in contributing to the national economy , ensuring smooth trading between business people as well as providing employment  opportunities. Despite the importance of shipping agencies in facilitating trade which has an effect on  National economy and society at large, shipping agencies  are plagued by several constraints which affect their smooth functioning. From constraints linked to national and international economic situations, which affect their functioning there are also plagued by challenges linked to the quality of labour available for their operations.

Many shipping agencies in Cameroon find it difficult in growing or, achieve growth at w very slow pace. From the look of things,  these difficulties are as a result of constraints faced as they carry-on their activities. There is therefore need to investigate the main constraints faced by these shipping agencies in Cameroon.

1.4 RESEARCH QUESTION

1.4.1 Main Research Question

What are the constraints  faced by shipping agencies  in Cameroon?

1.4.2 Specific Research Questions

What are the managerial constraints faced by shipping agencies in Cameroon ?

What are the financial constraints faced by shipping agencies in Cameroon?

What are the environmental constraints faced by shipping agencies in Cameroon? 

1.5 RESEARCH OBJECTIVES

1.5.1 Main objective

To Identify the contraints faced by shipping agencies in Cameroon.

1.5.2 Specific  Objectives

To identify the managerial constraints faced by shipping agencies in Cameroon.

To identify the financial constraints faced by shipping agencies in Cameroon.

To identify the environmental constraints faced by shipping agencies in Cameroon.