Nigerian shippers have protested Maersk’s $300 peak season surcharge (PSS) on containers from Asian nations headed for Nigeria.
The resentful shippers claim that a court order now in effect prohibits the shipping companies from raising rates without following the proper procedures.
They claimed that the governing body, the Nigerian Shippers’ Council (NSC), was unaware of the activity and had not provided advice on such an increase.Because no proper procedure was followed prior to the increase, the shippers declared they would not pay the fee.
Maersk announced Monday in a statement that containers destined for Nigeria from China, Japan, Taiwan, and other Asian nations would now be subject to $300 PSS on 1×40-foot units and $150 on 1×20-foot units.
The rise alludes to higher importation costs. China accounts for more than 20% of all imports into Nigeria. Containers coming from Brunei, Hong Kong, Vietnam, Indonesia, Cambodia, South Korea, Laos, Myanmar, Malaysia, Philippines, Singapore, Thailand, and East Timor are also covered by the Nigeria PSS, which went into effect on January 8, 2024.
In the meanwhile, on January 18th, the fee from Vietnam to Nigeria and other West African nations will take effect, and on February 2nd, the surcharge from Taiwan to Nigeria and other West African nations will.
Maersk claims that the premium on cargo headed for Nigeria is one of several new PSSs the shipping giant is implementing for different nations.
Nigerian shippers voiced their worries, pointing out that there is only one peak season per year, which occurs in July, August, September, October, and, at worst, November. They claimed it is unjust to establish a peak season in January, which is a difficult time when people are recovering.
According to Jonathan Nicol, Vice Chairman of the Business Action Against Corruption (BAAC) Integrity Alliance in Lagos, the shipping line is inadvertently adding two peak seasons km annually, which results in an increase in freight costs.
“They are releasing it in January, but the peak period is anticipated to be July, August, September, October, and at worst, November. How much time will it take then? What about March and April if you take January and February into account?”
He explained, “Because if it lasts for three months, that means we are always into another peak season, and shippers pay twice as much for peak seasons in a year.”
Nicol, a shipper herself, noted that shipping companies raise freight rates every peak season. She said that this is because the lines want to make up for the lower volume of cargo they had during the hard times, which is why they are currently carrying so much more.
“They use larger containers to bring in more containers during the peak season in order to make up for their shortfall because they have more cargoes during that time.”
“Thus, January marks the commencement of the peak season. How much time will it last? July, August, September, and October are under consideration. You now have January, February, March, and April, which is four months. After then, June is the last month we have left until the next peak season begins. Will a single year have two distinct peak seasons? “Is this peak season period or do you want to transition into two peak seasons in 2024, which is another peak season period?” he asked.
“We are requesting that the Ministry of Marine and Blue Economy look into this matter, take action, and halt all of these increases as this surcharge will drive up freight costs and cause importers to make inaccurate projections.”
“Your clearing plan is affected when freight charges totaling $3,000 are suddenly reduced to $4,000. Shippers have difficult times ahead of them,” he stated.
