Business

August 20, 2020

Peak Period Charges: Maritime stakeholders rally for resistance

Badagry Deep Seaport

By Godfrey Bivbere

Stakeholders in the maritime and manufacturing industries, yesterday joined the Nigerian Shippers Council, NSC, in challenging the hike in ‘peak period charges’  by the international shipping lines.

The ‘peak period charges’  refers to special costs attached to cargo shipments during high traffic period of the year usually between September and December. Vanguard learnt the that the shipping firms plan to effect about 400 percent increase in the charges to about $1000 per container, up from $200.

The stakeholders, at a meeting in Lagos, yesterday  with the management of the Shippers Council noted that the new charges, if allowed, could cripple the productive sector of the nation’s economy with an astronomical rise in cost of production as well as imported finished goods, pressuring the nation’s inflation rate further.

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In his opening remark, the Executive Secretary of the NSC, Hassan Bello, said the proposed increase in charges is a recipe for losses in jobs, revenue and businesses which will adversely affect the economy.

Describing the charges as “astronomical and unfair” he said it was not made known to stakeholders and not negotiated.

“We are therefore vehemently opposing it and we have written to them, we are expecting their feedback in the next few days.”

He charged the stakeholders not to relent in challenging the development but should also write to their global bodies to make their opposition to the increase known.

Among the stakeholders present at the meeting were the Nigerian Ports Authority, NPA, the Dangote Group, the Manufacturers Association of Nigeria, MAN, Nigerian Chamber of Commerce and Industries, NACCIMA, Lagos State Chamber of Commerce and Industries, LCCI, Promasidor Nigeria, the Association of Nigeria Licensed Customs Agents, ANLCA, National Association of Government Approved Freight Forwarders, NAGAFF and many more.

Managing Director of NPA, Hadiza Bala Usman, who was represented by a General Manager, Abubakar Umar, expressed satisfaction that the Council had written to the shipping lines over the new charges.

Umar noted that the charges will result in the loss of revenue to NPA, as importers may be forced to abandon their consignments.

The chairman of the Shippers Association of Lagos State, SALS, Jonathan Nicol, called on the private sector to rally round the NSC to resist the imposition of the new charge.

Representative of MAN, Olufemi Emmanuel said the fight should have started earlier as most companies have reduced their staff strength. He said that the executive of the body was meeting to take official stand on the issue.