CMA CGM Joins Maerskline, Drops Peak Season Surcharge
One of the multinational shipping lines, the French Container Transportation and Shipping Company CMA CGM, has joined Mediterranean Shipping Company (MSC) in suspending the controversial peak season surcharge being imposed on Nigerian shippers.
The shipping line has announced that with effect from October 1, it will no longer demand any surcharge on shippers who have goods on board ships calling at Nigerian ports.
The suspension of the peak season surcharge was contained in a letter sent to the Executive Secretary/CEO of the Nigerian Shippers’ Council. NSC, Mr Hassan Bello, Tuesday from the Head Office of CMA CGM in Marseilles France.
The latest development was contained in a statement issued by the Head of Public Relations, NSC, Mrs Rakiya Zubairu.
It would be recalled that the Maersk Line had earlier suspended application of the surcharge from 1st September 2020 as a result of protests by Shippers’ Council and Stakeholders.
The decision by the shipping companies to suspend the surcharge followed protests by the ports economic regulator which recently convened a meeting of the Organized Private Sector to deliberate on the astronomical peak season surcharge imposed by shipping lines calling in Nigeria.
At a summit hosted by the Council, stakeholders made up of members of the Manufacturers Association of Nigeria, Lagos Chamber of Commerce and Industry (LCCI), Nigerian Association of Chamber of Commerce, Industry , Mines and Agriculture (NACCIMA), importers and freight forwarders said it was time to check the multinational shipping lines and their local agents against such illegal charges.
Among the shipping lines fingered in the surcharge who are expected to drop the charges include Cosco, Hapag Lloyd and Evergreen shipping lines.
Hapag-Lloyd was reported to have recently introduced 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.
At the summit hosted by the Council, Executive Secretary, Mr Hassan Bello described the new shipping charge which was about 400 percent increment from $200 as scary and without explanation or justification.
Bello had disclosed that his agency had written a protest letter to the shipping firms and expects their response.
According to him “if a Nigeria bound container is charged as much as 1000 dollars then the national economy is in trouble.
“It means job losses and many shippers will be out of business. These charges are astronomic, unjustified, not notified and discriminatory. This is against fair trade facilitation rules.
“We have also written to the Ministry of Transportation to escalate it to Ministry of Trade and Ministry of Foreign Affairs and the Federal Government will protest will protest the charges.
“We have been having surcharge in the range of $200 to $400, but not 400 percent increase and there was no time limit. It is already going to nine months and this is not what any economy can cope with. This can cripple the economy”.
The Managing Director of NPA, Ms Hadiza Usman, who was represented on the occasion by the General Manager, Tariff and Billings, Abubakar Garban Umar also condemned the high shipping charges.
Usman said, “If the importers are charged so high and they abandoned the goods at the ports, NPA will lose revenue and it would reduce efficiency and turnaround of ships at Nigerian ports”.
Director General of LCCI, Dr Muda Yusuf said the new charges were not in the interest of the economy and businesses in Nigeria.
Yusuf said the charges would be resisted because of the negative effect and impact it will; inflict on Nigerians.
The representative of MAN, Mr. Olufemi Immanuel equally condemned the new charges, adding that perhaps unknown to the shipping companies, the charges came when manufacturers have laid off some workers as a result of no raw materials and low profit.
He said if allowed to hold, the charges will push up prices of goods in the market to an unbearable situation.
The shipping line has announced that with effect from October 1, it will no longer demand any surcharge on shippers who have goods on board ships calling at Nigerian ports.
The suspension of the peak season surcharge was contained in a letter sent to the Executive Secretary/CEO of the Nigerian Shippers’ Council. NSC, Mr Hassan Bello, Tuesday from the Head Office of CMA CGM in Marseilles France.
The latest development was contained in a statement issued by the Head of Public Relations, NSC, Mrs Rakiya Zubairu.
It would be recalled that the Maersk Line had earlier suspended application of the surcharge from 1st September 2020 as a result of protests by Shippers’ Council and Stakeholders.
The decision by the shipping companies to suspend the surcharge followed protests by the ports economic regulator which recently convened a meeting of the Organized Private Sector to deliberate on the astronomical peak season surcharge imposed by shipping lines calling in Nigeria.
At a summit hosted by the Council, stakeholders made up of members of the Manufacturers Association of Nigeria, Lagos Chamber of Commerce and Industry (LCCI), Nigerian Association of Chamber of Commerce, Industry , Mines and Agriculture (NACCIMA), importers and freight forwarders said it was time to check the multinational shipping lines and their local agents against such illegal charges.
Among the shipping lines fingered in the surcharge who are expected to drop the charges include Cosco, Hapag Lloyd and Evergreen shipping lines.
Hapag-Lloyd was reported to have recently introduced 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.
At the summit hosted by the Council, Executive Secretary, Mr Hassan Bello described the new shipping charge which was about 400 percent increment from $200 as scary and without explanation or justification.
Bello had disclosed that his agency had written a protest letter to the shipping firms and expects their response.
According to him “if a Nigeria bound container is charged as much as 1000 dollars then the national economy is in trouble.
“It means job losses and many shippers will be out of business. These charges are astronomic, unjustified, not notified and discriminatory. This is against fair trade facilitation rules.
“We have also written to the Ministry of Transportation to escalate it to Ministry of Trade and Ministry of Foreign Affairs and the Federal Government will protest will protest the charges.
“We have been having surcharge in the range of $200 to $400, but not 400 percent increase and there was no time limit. It is already going to nine months and this is not what any economy can cope with. This can cripple the economy”.
The Managing Director of NPA, Ms Hadiza Usman, who was represented on the occasion by the General Manager, Tariff and Billings, Abubakar Garban Umar also condemned the high shipping charges.
Usman said, “If the importers are charged so high and they abandoned the goods at the ports, NPA will lose revenue and it would reduce efficiency and turnaround of ships at Nigerian ports”.
Director General of LCCI, Dr Muda Yusuf said the new charges were not in the interest of the economy and businesses in Nigeria.
Yusuf said the charges would be resisted because of the negative effect and impact it will; inflict on Nigerians.
The representative of MAN, Mr. Olufemi Immanuel equally condemned the new charges, adding that perhaps unknown to the shipping companies, the charges came when manufacturers have laid off some workers as a result of no raw materials and low profit.
He said if allowed to hold, the charges will push up prices of goods in the market to an unbearable situation.