A group of freight forwarding and transport practitioners under the aegis of the Association of Concerned Freight Forwarders and Transporters has raised an alarm over the approval allegedly granted the terminal operators and the shipping companies by the Nigerian Shippers’ Council, NSC to increase Storage and other charges at the nation’s seaport.
This is even as the association called on the National Assembly not to permit the renewal of the concession agreement between the federal government through the Nigerian Ports Authority (NPA) and the terminal operators arguing that they are not adding value to the Nigerian economy.
It would be recalled that in September 2023, Five Star Logistics Limited, one of the Terminal Operators in a Memo to all Agents and Receivers announced an increase in charges saying;
“Due to the current economic situation of our country, our operational expenses have increased exponentially as a result of inflationary pressure and naira devaluation.
“The need to drive for improved service delivery has necessitated an upward review in storage charges for all cargoes with effect from 15th October 2023 as per below having obtained approval of relevant authorities. We greatly appreciate your cooperation and understanding. We are dedicated to bringing you the best services” the memo stated.
While a three-day free period is granted upon arrival, Container Standard – Import Full, for instance, will start paying N5,670 for 20ft containers and N11,340 for 40ft containers from 4th to 8th day; N33,264 for 20ft containers and N66,528 for 40ft containers from 9th to 13th day while paying N53,550 for 20ft containers and N105,840 from the 14th day onwards.
Decrying the situation at a Roundtable Meeting with members of the Maritime Reporters’ Association of Nigeria, MARAN in Lagos recently, the Association of Concerned Freight Forwarders and Transporters frowned at the failure of the Terminal Operators to consult stakeholders, in this case, the freight forwarders and their principals, the importers before going ahead to announce this hike in storage charges.
The Vice Chairman of the association, Mr. Ndubuisi Uzoegbo who spoke at the roundtable faulted the attitude of the terminal operators whom he accused of not consulting and taking into account, the opinion of the stakeholders before effecting increment in their charges describing it as disrespectful.
Hear him; “They have not even tried to consult the practitioners, those that patronize them. All they do is go to bed, wake up and communicate with a particular group of people and they will come up with new charges without talking to people who patronize them. I have never seen a place where someone commonizes a customer, it can only happen here in Nigeria. The importers are not sought after, the agents who are the freight forwarders are also not consulted.
“We are all practitioners, I can tell you vividly that we have done a lot of feasibility studies, what happens in this industry is of paramount concern to us. What are they increasing for? Some of their staff are complaining, look at where we are conducting examination and so on, all the basic amenities we needed to work with have not been provided for us the customers. The customer is always a king in every business world.
“The harsh maltreatment given to us by the shipping companies and the terminal operators in Nigeria is becoming unbearable and it is no longer acceptable to us the practitioners. We are here to say no to them, in fact, we are calling for the government to revoke their licenses and let NPA take back their port from AP Moller and the TICT and all these concessionaires.
“They should leave Nigeria; they don’t add any economic value to Nigeria. They own no property in Nigeria and the money they are collecting from us, they will repatriate it back to their countries. If you can, show me their building, where have they invested in Nigeria?
Look at our roads, they cannot come out and say let us give back to society by making this road we are plying every day motorable rather they are waiting for the President of Nigeria to come and do it for them while they are making billions of Naira on daily basis.
“Let me use APMT for example, if they decide to make N3bn in two days, all they need to do is to create artificial congestion and for one week, you will not be able to load one container out of this port. Then, multiply it by the number of containers that are leaving the port on a daily basis, you will find out that these guys are rippers, they have been ripping us dry, they are the worst economic saboteurs in this country and the federal government must do something about them.”
Continuing, he called on the National Assembly not to permit the renewal of the concession agreement between the federal government through the Nigerian Ports Authority (NPA) and the terminal operators arguing that they are not adding value to the Nigerian economy.
“Let Nigeria take back her port so that things can go well here”, he said.
“Now they are proposing that on the 15th of this month, they are going to effect the increments. If Nigerians should pay that, in the next six months, nobody will be able to bring his or her container out of this port and if that happens, it is going to affect all of us, not only we the freight forwarders”, he added.
Also speaking, a member of the association and President, Association of Customs Brokers, Dr. Basil Nwolisa maintained that they had been engaging with the Nigerian Shippers’ Council (NSC) over this issue noting that the approval they allegedly granted the terminal operators for an upward review of the storage charges was given in error.
He said, “We will confront them with the laws of Nigeria on how to approve increments. Before the next 24 hours, we will be having a meeting with the leadership of the Nigerian Shippers’ Council and we will tell them to their face that this increment will not stand because it was not increased with the interest of Nigerians at heart and any increment you are making even if it is in rent or whatever, you have to carry the people along.
“So, it will not happen. Have you asked the Shippers’ Council if they invited the stakeholders to a meeting before they approve the increment? Because that is what the law says.”
On his part, the Secretary of the association, Sir Johnny Ubaka while insisting that some of the delays witnessed at the port were caused by the terminal operators in order to extort Nigerians said, “Sometimes, you will book for examination, they will not drop your containers for three days, who do we fight? You can even approach the white man and by the time you may not be able to clear your consignment in two weeks, you will be paying N105,000 a day. How much are you making per container per import?
“Why we are saying this is because we are not just crying foul for nothing. Once your container enters the third period, within five days, you are going to lose N500,000, as the case may be, you might even forfeit that consignment.
So, even if they have gotten approval, we are saying no to this because we are pained. We the Concerned Freight Forwarders are saying no to this, let them engage us and let us know the ratio at which they are increasing their storage, the same thing goes to the Customs.” The association which is an amalgamation of every freight-forwarding association in the country expressed worries that if the arbitrary increase is allowed to stand, it will have an effect on the cost of items in the country noting that it is the end
