Shippers’ Council Suspends CMA CGM Controversial $400 Port Congestion Surcharge on Lagos Cargoes

ABIOLA Seun, Zion Olalekan |

The Nigerian Shippers’ Council (NSC) has directed Singaporean shipping giant, CMA/CGM to suspend its planned collection of $400 port congestion surcharge imposed on cargoes berthing at Lagos ports of Tin Can and Apapa.

CMA CGM had recently announced that cargoes from any part of the world on any of its ships will attract extra “USD 400 / EUR 850 per 20′ Dry and Reefer and USD 400 / EUR 350 per 40′ Dry and Reefer.

The surcharge was to have taken off on Monday; October 15th, 2018.

Following notification of the surcharge, the Shippers’ Council intervened and declared it illegal, null and void and fixed a meeting for Monday with the various shipping lines operating in Nigeria.

But, Executive Secretary of the Council, Mr Hassan Bello yesterday confirmed that the decision to suspend collection of the surcharge was taken after a closed door meeting with stakeholders in Lagos.

He confirmed that: “We had a meeting yesterday with the shipping companies that introduced the charges. We are still meeting again but what we said was that whether they are surcharges or local charges, it must be cleared with the council.”

“The procedure was not followed, so the shipping companies will go back to their principal to convey the outcome to the carriers.

“They cannot just charge arbitrarily, first of all NSC opposed the charges especially because of the economy; secondly, the procedure is wrong, you can’t just slam charges without telling us.”

He added that, “we told them to suspend or stop the charges and consult their principal before the next meeting,’’ said the NSC boss.

He said that another meeting would be held to conclude on the matter.

Recall that the Association of Nigeria Licensed Customs Agents (ANLCA) threatened to drag the managing director of CMA CGM Shipping company, Mr. Todd Rives to the Economic and Financial Crimes Commission (EFCC) should the company goes ahead to introduce the proposed congestion surcharge on Nigerian bound cargoes.

Speaking on the surcharge last week, the association Vice President, Kayode Farinto equally described the charge as an illegality and a criminal offense.

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.

Farinto said the association was issuing a global trade alert on CMA CGM, even as he advised all Nigerian importers to stop shipping their cargoes through the company.

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 affreitment 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 Nigeria 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”.