BAYO AKOMOLAFE 
The Nigerian Shippers’ Council (NSC) has urged the Union of African Shippers’ Councils (UASC) to take a united stand against arbitrary shipping surcharges and unfair freight practices that have continued to undermine trade competitiveness across West and Central Africa, BAYO AKOMOLAFE reports
For more than a decade, stakeholders have said that arbitrary surcharges by shipping lines on Nigerian seaports have crippled industries, claimed jobs, and shrunk revenue accruable to the Federal Government.
Some of these surcharges are Basic Service Rate Additional (BSRA), Bunker Adjustment Factor (BAF), Currency Adjustment Factor (CAF) IMO, ISPS or SEC – security charges, Terminal Handling Charge (THC), Full Container Load shipments, Heavy Weight Charge (HWC), Overweight Surcharge (OWS) Port Congestion Surcharge, Peak Season Surcharge (PSS) and Winter Surcharge (WS).
Specifically, they listed shipping companies that have been fond of arbitrary charges to include, Cosco, Maersk, MSC, CMA CGM, Hapag Lloyd, and Evergreen shipping among others. Worried by this, Nigerian Shippers’ Council (NSC) stressed the need to address the imposition of peak season surcharges and other arbitrary fees by shipping lines, saying that it was threatening trade competitiveness across Africa.
For instance, the Executive Secretary, Dr. Pius Akutah, called for fair competition, transparent freight practices, and efficient movement of goods across borders.
Akutah explained at a two-day sub-regional seminar and meeting of the Standing Committee No. 1 on Trade and Transport forum of Union of African Shippers’ Councils (UASC) comprising 19 member countries in Lagos that shippers councils in Africa have a critical role to play in addressing the arbitrary surcharges in advancing West and Central Africa’s readiness for the African Continental Free Trade Area (AfCFTA).
Speaking on the theme: “The readiness of countries of West and Central Africa in the implementation of the agreement establishing the AfCFTA—The Role of Shippers’ Councils,” Akutah explained that the gathering aims to strengthen regional cooperation to harness a combined market exceeding 1.4 billion people and a GDP over $3 trillion.
He noted: “We are equally concerned about the recent issue of peak season surcharges and other arbitrary charges imposed by shipping lines. These surcharges have serious implications for trade competitiveness in West and Central Africa.
I believe that through constructive engagement at this forum, we can develop a unified regional position that promotes fairness, transparency, and sustainability in shipping practices. “This is where the shippers’ councils have a critical role to play.
Across our sub-region, we are expected to serve not only as advocates for shippers but also as regulators ensuring fair competition, transparent freight practices, and efficient movement of goods across borders.
“For us in Nigeria, the Shippers’ Council as the port economic regulator continues to implement policies aimed at improving port efficiency, promoting multimodal transport, and facilitating the development of Inland Dry Ports and logistics hubs.”
Transparency
Moreover, the Minister of Marine and Blue Economy, Adegboyega Oyetola, who was represented by the Permanent Secretary of the ministry, Mr Olufemi Oloruntola, stressed the urgent need to address persistent challenges in port
There is need by African shippers councils to cooperate, reduce trade costs and encourage competitiveness of African exports in global markets
logistics, trade facilitation, and shipping cost regulation to fully harness the benefits of AfCFTA. Oyetola emphasised that national shippers’ councils across the sub-region must rise to their responsibility as economic regulators and advocates for shippers’ interests.
By ensuring transparent shipping practices and fair freight rates, the minister said, shippers’ councils could help reduce trade costs and enhance the competitiveness of African exports in global markets.
The minister described the AfCFTA as a game-changing opportunity for Africa’s economic transformation, offering access to a single market of over 1.4 billion people and a combined GDP exceeding $3 trillion, warning that without addressing logistics inefficiencies and unfair shipping practices, many African economies risk being left behind.
Advocacy
Moreover, the Secretary General of UASC, Abdurahman Abba Kafougou commended the Nigerian Shippers’ Council for hosting the event. The secretary general affirmed that the initiatives reflect the dynamism of the Nigerian Shippers’ Council, which seeks to provide better assistance to shippers and members of the UASC.
He advocated for harnessing the opportunities of the AfCFTA for the benefit of shippers; with a view to proper use of Incoterms 2020; and to reducing the cost and time of cargo delivery to enhance trade facilitation.
According to him, establishing reliable information tools for shippers through unified platforms or border-based information centers was key while canvassing for the admission of new members to strengthen the UASC.
He explained: “These issues are crucial to reducing trade bottlenecks and improving competitiveness across our sub-region. I encourage all experts present to engage in in-depth discussions that will lead to actionable recommendations for adoption by the UASC Executive Committee.”
Last line
There is need by African shippers councils to cooperate, reduce trade costs and encourage competitiveness of African exports in global markets.
