Shippers’ Council, ANLCA move against CMA/CGM Shipping company - declare congestion surcharge illegal

Abiola Seun |

The stage is seemed to be set for a major confrontation between the Nigerian Shippers Council, Association of Nigerian Licensed Customs Agents (ANLCA ) on one hand and CMA/CGM Shipping company on the other over the controversial decision of the latter to slam N144,000 congestion surcharge on Nigeria-bound cargo beginning from October 15th, 2018.

While shippers council has declared the move as illegal, null and void, the high command of ANLCA has mobilised its members for confrontation with the shipping company.

It was also learnt that the management of the shipping company has decided not to shift ground in the face of the constellation of opposition against its decision, thus setting a stage for what likely to be a battle royale.

In a chat with journalists yesterday, the Executive Secretary of the council, Barr. Hassan Bello bemoaned the planned introduction of the congestion surcharge without the input of the council.

He said until the council gives a go ahead, the surcharge remained illegal.

Bello said, “There is no such charge, there is nothing like that and if there is an intention to do that, it is null and void until they have negotiated with the Nigerian Shippers Council and until Nigerian shippers’ council gives them the go ahead it will be illegal.”

However, the Association of Nigeria Licensed Customs Agents (ANLCA) has described the introduction of the congestion surcharge as an illegality and a criminal offense.

In a press statement to newsmen by the Vice president of ANLCA, Kayode Farinto, the association advised all Nigerian importers to stop shipping their cargoes through the company.

He argued that already, shipping companies collect N60,000 administrative charges on all forty foot container, despite the contract of affreitment entered into by the importer and the shipping lines abroad and payment of freight.

He said “We have carefully looked at the proposed congestion surcharge being planned on Nigerian bound cargo by CMA CGM, which will commence by 15th of October and we want to say that, we don’t know why it is being proposed because we don’t have congestion at our ports, there are questions that need to be asked when you talk about placing surcharge on a cargo”

“The first one is contract of affreightment which has been entered into by the importer and the shipping lines, if you now slam a charge on them called congestion surcharge, the question is do we have congestion at our ports? The answer is No”

“Even if there are operational challenges in the port that attracts additional cost, does this warrant slamming congestion surcharge on Nigerian bound cargo? But because they have been doing it and nobody has challenged them, this time around we are challenging them and we are saying that it is illegal, it negates the federal government policy on ease of doing business, and we are advising importers not to ship their cargoes through CMA CGM from 15th of October, they should look for any other shipping line that is not collecting such money and put your cargo.”

Farinto said the new charge by CMA CGM equals N144,000 and it is like milking Nigerians dry, he said this cannot happen in advance countries.

Speaking further he said “This is obtaining money under false pretence which is a criminal offence, and if CMA CGM goes ahead to collect this charge, would arrest the MD of CMA CGM and drag ourselves to EFCC, whatever is collected from Nigerian importers would be paid back to them”

He said that shipping companies are the main reason why cargoes are not being moved out of the port as expected because they lack a holding bay that can hold the number of containers they ship into Nigeria.

“Already, there is the N60,000 administrative charge being collected by every shipping company on forty foot containers, what is this charge for haven paid for freight abroad? They look at Nigeria as a fertile land where you can make illegitimate money”

In a circular issued on Friday, CMA CGM said: “Port congestion at Lagos ports, Nigeria, is currently increasing our operational costs and generating severe service disruption for several weeks”.

The circular added: “CMA CGM will therefore implement the following Emergency Congestion Surcharge on Lagos import cargo:
Effective October 15th, 2018 (B/L date) for non-FMC trades and November 5th, 2018 (B/L date) for FMC trades:
From worldwide to Apapa and Tincan, Nigeria
All cargo dry, reefer, OOG and breakbulk
Prepaid and paid in addition to the ocean freight
USD 400 / EUR 350 per 20′ Dry and Reefer
USD 400 / EUR 350 per 40′ Dry and Reefer