Nigerian importers protest surcharge on cargoes by foreign shipping firms

Importers in Nigeria are lamenting the huge surcharge levied on them by international shipping firms for cargoes imported from around the world.

According to them, the surcharge is increasing the high cost of doing business at Nigerian ports and adding to the challenges of infrastructure deficit and difficult shipping process.

One of the foreign shipping firms, Hapag-Lloyd, has in the past nine months reportedly imposed a revised Peak Season Surcharge (PSS) on Tin Can Island and Apapa ports in Lagos. Hapag-Lloyd levied the PSS on all container types from across the world to Tin Can Island and Apapa ports.

Documents obtained showed that about $1025 surcharge is slammed on 20 feet (ft) and 40ft containers on cargoes from United States and US territories, China, Taiwan, Hong Kong, and Macau.

Charges from cargoes from the rest of the world are also pegged at $1025 or EUR 930 accordingly.

The charges differ from the ocean tariff rates and bunker-related charges, security-related surcharges, terminal-related surcharges among others that make up the cost of shipping in the country.

Hapag Lloyd, which started the charges in 2019, will continue it till further notice, it was learnt.

Hassan Bello, Executive Secretary and Chief Executive Officer of Nigerian Shippers Council, called the move an economic sabotage.

“We are protesting against it vehemently. There was no notice to us and the shippers that the charge was imminent. From our intelligence these charges are over $1,000. It is discriminatory. It is insensitive. Just when the Nigerian economy is recovering a little bit from the effect of COVID-19, it is insensitive for anybody to slam such charges of over $1,000 on Nigeria’s trade.

“It is discriminatory because it is not happening in Togo, Benin or Ghana, why should it be in Nigeria. We have written a strong letter to the shipping association of Nigeria and we also wrote to their principals overseas, because this is not a local charge.

“Why should Nigeria be the recovery ground for shipping companies? We have three lines of action on the internal level; we are going to call on the Union of Africa’s Shippers’ Council; Global Shippers’ Association and Global Shippers Forum.

“On the national level, we are rallying round the organized private sector, I am already in talk with Lagos Chamber of Commerce and Industry (LCCI), I will talk to Manufacturers Association of Nigeria, as well as big time shippers like Dangote and Nigerian Breweries among others.

“We should all come together and fight against this unnecessary charges. The charges are unilateral and arbitral and we are going to protest against it because it is economic sabotage. It goes deep into Nigeria’s economy recovery. It is against our resolve to recover from the effect of COVID-19,” he said.

Read also: CBN shuts out importers of goods with local substitutes from accessing forex

Chairman, Shippers Association Lagos State, Jonathan Nichol criticised the increased shipping costs, stating the group’s willingness to frustrate the move by resisting appropriate agencies.

He said the surcharge was attributable to congestion at Lagos ports but noted that it was unnecessary given the impact of the coronavirus pandemic.

“We will certainly induce discussions on this with the Shippers Council,” he said.

Ogunlade Olabisi, Managing Director of WellWaters Resources, enjoined the Federal Competition to step into the matter.

“I think there is need for the Federal Competition and Consumer Protection to take up legal action against the shipping firm. After all, it is their responsibility to protection consumers in the country,” he said.

Before now, CMA CGM and Maersk Shipping had earlier slammed surcharge on Nigerian bound cargoes.

Despite the coronavirus crisis, Hapag Lloyd closed the first half of 2020 with a group profit of $314 million relative to the $165 million posted in the same period of last year.

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