Karugaba explained that local marine cargo insurance could significantly reduce hidden costs often faced by traders, providing a more efficient compensation process in cases of loss or damage during shipping. Previously, small traders struggled to access compensation and often relied on consolidators to mediate claims. “With local marine insurance, small and medium traders can now address their losses locally and individually,” he stated.
The UCA, which represents 26 registered companies involved in importing and exporting consolidated cargo from countries such as China, Dubai, Turkey, and Vietnam, is actively engaging stakeholders to ensure a smooth rollout of the initiative. Training sessions have been conducted for members to prepare them for the changes ahead.
Karugaba also addressed the challenges posed by foreign marine insurance policies that often exclude direct participation from final importers. He pointed to the online Uganda Insurance Association (UIA) portal as a significant advancement, allowing consolidators to apply for marine insurance on behalf of individual traders.
As discussions continue around the implementation of local marine cargo insurance, stakeholders remain optimistic that this initiative will enhance efficiency and reduce costs for Ugandan traders, ultimately contributing to the growth of the country’s trade and logistics sector.