Shippers Council, OPS Kick Against Liners PSS Hike

Apparently worried about the cost of doing business in the nation’s seaports, the Nigeria Shippers’ Council (NSC) on Wednesday in collaboration with the Organised Private sector (OPS) kicked against the hike in the Peak Season Surcharge (PSS), introduced by Liners, describing it as “unjustified charge”.

Carriers charge a Peak Season Surcharge (PSS) levy when they are at near or full capacity. The growing demand leads to lack of space on vessels and increasing costs for supplying sufficient equipment. Carriers can implement this surcharge any time and at any level until further notice.

The Council in a meeting with the stakeholders frowned at the proposed spike of over 100% increase freight rates of importing goods from Europe and other parts of the world to Nigeria during the period.

The Executive Secretary and Chief Executive Officer (ES/CEO) of NSC, Barr. Hassan Bello who led the private sector drivers said such surcharge would have adverse effect on the economy of the country.

The council boss advocated for the immediate withdrawal of the unethical charges before further negotiation because according to him, its not transparent for shipping competition.

Bello explained that the surcharge was unjustifiable, astronomical, unbearable and that it would worsen the poverty level of the country adding that it would also worsen the unemployment rate of the country.

He noted that the council cannot do it alone but with the support from the private sector and other maritime agencies saying that “doing business in Nigeria is a nightmare”

He lamented that, :”Surcharge that we are not party to, surcharge that is not transparent surcharge that is unjustifiable, astronomical, unbearable, we can accept such surcharge because it goes to the root of our economy.

“We are doing this together with relevant stakeholders. Manufacturers Association of Nigeria, Traders, Freight Forwarders, Shippers’, everybody should come on board because if this is left and it is collected, there will be a serious negative impact on the economy.

“It will go to worsening poverty situation after the little recovery we have made from Covid-19 and it will worsen unemployment and inflationary trend in the consumers.

He added that no reason was adduced to the increment, “If I know the reason, I would have been happy but just a matter of demand and supply that we have to pay more for goods coming from Europe. It is against international trade practices

Speaking further, the NSC boss suggested an alternative way of paying the container deposit charged by shipping lines saying it would be better to pay for insurance instead of outright deposit by Shippers’ and their agents.

Bello said, “The container deposit is not for stopping but for ease of doing business. We are looking for other options.

“What we said was that the container deposit regime has been draining administratively, financially and it will add to issue of doing business.

“If we replace container deposit with certain insurance arrangements, that will be beautiful just like it is done in other countries,” he submitted.

The meeting had in attendance players from Manufacturers Association of Nigeria (MAN) NACCIMA , LCCI, ANLCA, NAGAFF and Shipper Association of Lagos State (SALS).

Others include representatives from Dangote Groups, Promassidor Group, UNILEVER .

The stakeholders assured to work closely with the Council in a bid to kick against the alleged global conspiracy.

 

By Roland Ekama