Malawi hauliers ground trucks over fuel transport dispute
Local transporters protest the return of a court-outlawed Delivery Duty Unpaid system favouring foreign firms.
Local fuel transporters in Malawi have parked their tankers nationwide to protest the reintroduction of the Delivery Duty Unpaid (DDU) procurement system. The Transporters Association of Malawi (TAM) argues this arrangement allows fuel suppliers to select transporters, effectively shutting out domestic companies. This dispute revives a conflict over fuel transport contracts that a 2024 High Court ruling had previously addressed.
TAM spokesperson Frank Banda stated that Malawian operators are being disadvantaged while foreign transporters continue to handle the business. Truck Drivers Association of Malawi president Francis Mkandawire questioned the use of scarce foreign currency to pay foreign firms for transport services. An economics lecturer noted that these forex expenditures could be redirected to essential imports like fuel and medicine.
The DDU system, which began in 2017, contrasts with the previous ex-tank arrangement where local importers managed transit risks. Under DDU, suppliers bear delivery risks to local depots, with local importers taking charge only after delivery. TAM maintains that local transporters are capable and ready to resume services if engaged by the government.
Why it mattersMalawian transporters are directly affected by losing contracts and income due to the DDU system, while the country's foreign exchange reserves are strained by payments to foreign hauliers.