UASC Calls For Immediate Suspension Of Peak Season Surcharge

Reactions have continued to condemn the recent 400% hike charges by multinationals , as the Union of African Shippers’ Councils (UASC) has called for the immediate suspension of Peak Season Surcharges (PSS) imposed by Shipping Lines serving the West African Trade Route.

According to a statement signed by Rakiya Zubairu , Head of Public Relations of the council on Friday, the condemnation was in line with Nigerian Shippers’ Council’s position.

Nigerian Shippers’ Council had in an August 16, 2020 letter addressed to the European Community Ship Owners Association (ECSA) and copied to the UASC among others, complained about the outrageous increase in surcharges with particular reference to Peak Season Surcharge (PSS), levied on Nigeria bound cargo.

In a letter signed by the Secretary-General Ogoula Giscard Lilian, the UASC strongly condemned the “unilateral and offensive action by ECSA carriers in blatant disrespect of previous agreement and expectations,” stating that the action destabilizes the business operations of its members “through the increasing of transport costs and weakening of the economies of UASC member-states especially during this outbreak of Coronavirus pandemic which has kept commercial activity at its lowest in terms of activity and prosperity.”

The letter to ECSA further stated that “the implementation of this unilateral decision on your part is in violation of previous UASC/ECSA agreements requiring prior, mutual and reasonable notification of UASC and PMAWCA by individual shipping companies before any such imposition of new tariffs, surcharge or increase in transport cost. The letter referred ECSA to the Report of the UASC/ECSA meeting held on 16 July 2010; Joint Declaration between UASC and ECSA signed in Brussels on 12 April 2012.”

While responding to support the council’s position to dismiss the surcharge the UASC called on ECSA to kindly take the following measures which include respect previous agreements and recommendations on this matter; and suspend the application of the Peak Season Surcharge until discussions on the new surcharges take place.

Other measures include: take necessary measures to improve on the general transparency and facilitation of trade relation with UASC’s members.

It may be recalled that two days ago, Nigerian Shippers’ Council convened a meeting of stakeholders and the organised private sector to discuss the astronomical increase in Peak Season Surcharge. The meeting roundly condemned the surcharge.

Chief Cajetan Agu, Nigerian Shippers’ Council Director of Consumer Affairs Department said a joint platform made up of UASC, Shippers’ Council and other relevant stakeholders will be created to facilitate discussions with ECSA.