Shippers Council Describes Surcharges by Shipping Lines as Economic Sabotage, Writes Shippers Association
*Freight forwarders plan protest
The Executive Secretary, Nigeria Shippers Council (NSC), Mr Hassan Bello, has described as economic sabotage the surcharges being imposed on Nigerian shippers by some shipping lines.
One of the shipping lines, Hapag-Lloyd, had recently introduced Peak Season Surcharge (PSS) on all containers coming through Apapa and Tin Can Island ports.
Freight forwarders said the surcharge is $1025 for 20 and 40ft containers coming from the United States, China, Taiwan and Hong Kong and $1025 or EUR 930 for containers coming from other countries.
However, Bello in reaction to the surcharges told newsmen that the Council will protest against it.
He described the surcharges as insensitive and discriminatory since such surcharges are not imposed on shippers in other neighbouring countries of Ghana, Togo and Benin Republic.
Bello added that it was wrong to have introduced such surcharges at a time the economy is just trying to recover from the effect of the coronavirus pandemic.
He said that already the Council has written a letter to the Shipping Lines Association in Nigeria to protest against the surcharges.
As at the time of filing this report, notable freight forwarders associations were planning on how to mobilize members to protest the surcharges by the shipping lines.
The NSC had last year identified about eight surcharges being imposed on shippers in Nigeria and other neighbouring countries with negative impact on the economies.
The surcharges include peak season surcharge (PSS); extra risk insurance (ERI)/carrier security fee (CSF) surcharge; congestion surcharge (CS); freight tax surcharge (FTS); operations cost recovery (OCR); low sulphur surcharge (LSS); B.A.F (bunker adjustment surcharge) and C.A.F. (currency adjustment surcharge).
Participants from 16 countries who attended the conference of the summit organised by the Council in collaboration with the Union of African Shippers Council Councils and Global Shippers Forum (GSF) in August last year at Abuja had condemned the surcharges and high local shipping charges by international shipping lines.
The 16-member countries who attended the conference said they cannot afford to fold their hands while foreign shipowners and their agents continue to rip-off shippers through arbitrary charges.
Part of the consensus agreement was to take up the matter with foreign shipowners at a meeting of GSF which held London in September.
In the words of Hassan Bello, who was the Chairman of the Standing Committee 1 on Trade and Transport during the meeting, African countries must check the excesses of the shipowners and their agents.
Speaking on the arbitrary increase in charges and introduction of new nomenclatures by shipping lines, Bello said member states should insist that shippers must be consulted before new charges are imposed on them.
He also said shippers must take time to study and ask questions on the component of the charges being presented to them and agree on their justification before payment is made.
He enjoined shippers councils in the sub-region to resort to legislation as suggested by the Secretary General of GSF , Mr James Hookham, if the foreign ship owners continue to impose such charges without negotiation.
The Executive Secretary, Nigeria Shippers Council (NSC), Mr Hassan Bello, has described as economic sabotage the surcharges being imposed on Nigerian shippers by some shipping lines.
One of the shipping lines, Hapag-Lloyd, had recently introduced Peak Season Surcharge (PSS) on all containers coming through Apapa and Tin Can Island ports.
Freight forwarders said the surcharge is $1025 for 20 and 40ft containers coming from the United States, China, Taiwan and Hong Kong and $1025 or EUR 930 for containers coming from other countries.
However, Bello in reaction to the surcharges told newsmen that the Council will protest against it.
He described the surcharges as insensitive and discriminatory since such surcharges are not imposed on shippers in other neighbouring countries of Ghana, Togo and Benin Republic.
Bello added that it was wrong to have introduced such surcharges at a time the economy is just trying to recover from the effect of the coronavirus pandemic.
He said that already the Council has written a letter to the Shipping Lines Association in Nigeria to protest against the surcharges.
As at the time of filing this report, notable freight forwarders associations were planning on how to mobilize members to protest the surcharges by the shipping lines.
The NSC had last year identified about eight surcharges being imposed on shippers in Nigeria and other neighbouring countries with negative impact on the economies.
The surcharges include peak season surcharge (PSS); extra risk insurance (ERI)/carrier security fee (CSF) surcharge; congestion surcharge (CS); freight tax surcharge (FTS); operations cost recovery (OCR); low sulphur surcharge (LSS); B.A.F (bunker adjustment surcharge) and C.A.F. (currency adjustment surcharge).
Participants from 16 countries who attended the conference of the summit organised by the Council in collaboration with the Union of African Shippers Council Councils and Global Shippers Forum (GSF) in August last year at Abuja had condemned the surcharges and high local shipping charges by international shipping lines.
The 16-member countries who attended the conference said they cannot afford to fold their hands while foreign shipowners and their agents continue to rip-off shippers through arbitrary charges.
Part of the consensus agreement was to take up the matter with foreign shipowners at a meeting of GSF which held London in September.
In the words of Hassan Bello, who was the Chairman of the Standing Committee 1 on Trade and Transport during the meeting, African countries must check the excesses of the shipowners and their agents.
Speaking on the arbitrary increase in charges and introduction of new nomenclatures by shipping lines, Bello said member states should insist that shippers must be consulted before new charges are imposed on them.
He also said shippers must take time to study and ask questions on the component of the charges being presented to them and agree on their justification before payment is made.
He enjoined shippers councils in the sub-region to resort to legislation as suggested by the Secretary General of GSF , Mr James Hookham, if the foreign ship owners continue to impose such charges without negotiation.
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