The Union of African Shippers’ Councils has called for the immediate suspension of Peak Season Surcharges imposed by shipping lines serving the West African trade route.
The Nigerian Shippers’ Council, a frontline member of the union and regulator of the country’s seaports, said it was in support of the position.
The council had in an August 16, 2020 letter addressed to the European Community Ship Owners Association, complained about the increase in surcharges with particular reference to the PSS levied on Nigeria-bound cargoes.
In a letter signed by its Secretary General, Ogoula Giscard Lilian, the UASC condemned the “unilateral and offensive action by ECSA carriers in blatant disrespect of previous agreement and expectations,” stating that the action destabilises 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 added, “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.”
Further, 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.
UASC, therefore, called on ECSA to “suspend the application of the Peak Season Surcharge until discussions on the new surcharge take place and take necessary measures to improve on the general transparency and facilitation of trade relation with UASC’s members.”
With no national carriers, economies of the West African subregion continue to suffer in the hands of foreign shipping lines who impose different surcharges arbitrarily and at will. The shipping lines also place war surcharges on goods coming to West African ports even though there is no war in the region.
Nigerian importers pay heavy surcharges reaching N67bn in 2017.
The NSC held a meeting of stakeholders and the private sector in which the surcharge was condemned.
Cajetan Agu, NSC Director of Consumer Affairs Department, said a joint platform made up of UASC, the council and other relevant stakeholders would be created to facilitate discussions with ECSA.
