Covid-19: Shippers’ Council Directs Haulage Operators to Reduce Freight Rate at Seaports

Abiola Seun

The Nigerian Shippers Council (NSC), yesterday directed haulage operators to reduce the freight rates to decongest the nation’s seaports amid Covid-19 pandemic.

Speaking in a meeting with truck owners under the aegis of Council of Maritime Truck Union and Association (COMTUA), the executive secretary of the council, Barr. Hassan Bello said the truck owners must sacrifice and contribute to the sustainability of the nation’s economy during the crisis.

According to him, the nation doesn’t need astronomical or unrealistic freight rate as the ports need to be decongested to forestall congestion of the seaports.

He said, “We are here to discuss about the issue of cost, NSC has tried to bring out indicative freight rates for guidance though we are not directing you to obey that but what we are doing is what is obtainable anywhere in the world. We can’t continue to have price differentials at whims and caprices of the owners; there must be some guidelines on freight rates just like we are doing with shipping companies, terminal operators and consolidators.

“Everyone must have a price regime and we are not fixing the price; we are leaving that to demand and supply but we said there must be some limit because shippers abroad everyday make enquiries but we are at a loss because no standard indicative rate. We want you to help us to have a standard rate so that there will be competition.”

Bello said reason for the reduction in the cost is a form of sacrifice from the truck owners saying the agency will further engage the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA) on reduction of their charges.

“We want you to look at the cost because everyone is making a sacrifice, the terminal operators, shipping companies have made sacrifice and we are looking at NPA and NIMASA so that they will reduce their cost during this time as their contributions to the Nigerian economy. Please don’t allow Nigeria economy to be at stand still and after the Covid-19 we don’t want it to be written that it is owners of trucks that let the nation down.”

“We are stakeholder sensitive, we appeal to your patriotic sentiment to keep people in employment, operate at the port and let’s clear the cargoes. Right now, there are vessels lining up to come into the port to discharge but there is no space so, I know the usual strategy is taking empties and bring laden but we need to look at the need of the country and we need to make sacrifice. So, I appeal to you to look at the cost because we don’t need astronomical or unrealistic cost and these trucks must have easier access to come in and out in a very organised manner and give them access to take already available cargoes.”

Bello further stated that since the council and NPA have both secured storage and rent-free period for importers, the haulage operators should also ensure movement of the cargoes out of the port.

“We cannot over emphasize the important of hauliers to the economy especially now that we are having to face this pandemic. What we want is for the haulier to ensure port operation is done.

“Shippers Council have secured demurrage free period during the lockdown and NPA has also secured 21 days rent-free period from the terminal and this combination has given us relief and advantage to take as much as possible cargoes out of the port; but there are limitations in truck and that is why am appealing to you to help us find solution because I have been going through the terminal almost every day and the rate of occupancy is getting to 90 percent that there is no space for cargoes at the terminal anymore and this is because trucks are not coming to evacuate cargoes.

“Let us use this opportunity – rent and demurrage free period- and since the road is free there is no better time to deploy trucks and also try as much as you can, to galvanise your business plans and effort to ensure cargoes are brought out of the port.

Also speaking, the general coordinator, Council of Maritime Truck Unions and Association (COMTUA), Stephen Okafor agreed that the truck owners will lower the price to meet present realities.

He said the council must however call an expanded meeting after the Covid-19 pandemic to draw up uniform freight rates for all truck owners.

“On pricing, I agree, there are several times we have meeting on freight rate standardisation and Shippers council came up with rate but they were not enforced. We have so many unions in the industry so I think we need to call a larger meeting to come up with a uniform freight rate.

“Also, we are not against coming down on the pricing and I think I agree that is part of our own contribution,” Okafor stated.

Editing by ‘Biodun Soyele