MAJAN Round Table: Freight forwarders on the warpath with terminal operators over increase in rent charges

MAJAN Round Table: Freight forwarders on the warpath with terminal operators over increase in rent charges

·         Conclude plans to shut down ports

·         Knock Farinto and others for supporting the increment; accuse NSC of complicity

Unless urgent measures are taken to address the recent astronomical increase in rent charges by terminal operators, the nation’s economy may further suffer a major setback as the freight forwarders have concluded plans to shut down the ports in Lagos by embarking on massive protests beginning today, Monday, October 23, 2023.
The National Coordinator, National Association of Government Approved Freight Forwarders (NAGAFF) 100 Percent Compliance, Hon. Ibrahim Tanko, disclosed this at a Maritime Journalists Association of Nigeria (MAJAN) Roundtable on Friday in Lagos at the weekend.
Tanko, who expressed great concern for the suffering Nigerian masses, said: “I am speaking as a Nigerian, as a freight forwarder, and as a freedom fighter. No Nigerian will be happy with this overnight increment by the terminal operators. No single Nigerian will be happy with the way the terminal operators woke up one morning and increased rent charges by 650 percent without consultation with anyone.”
He noted that while the terminal operators reserve the right to increase charges, they should do so through the right procedures and not through the back door, adding, “If you want to increase your charges, nobody is against that. But you must do it in the proper way. You must have extensive consultations.

“We have the Nigerian Shippers’ Council (NSC), the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), the Nigerian Ports Authority (NPA), and the major associations. You should have met with the bodies and told them why you wanted to increase the charges. All of us will look into the matter and come up with an acceptable amount. But they didn’t follow that process, but rather they just woke up one morning and increased rent charges by over 650 percent.”
Continuing, he said, “Before now, we were paying N1,200, and from that amount to now over N96,000. It is killing and totally unacceptable to us,” he said.
He cautioned that if nothing was done to reverse the obnoxious increment, there is the possibility that the ports would be flooded with a lot of overtime containers, saying: “Just a few days ago, NPA was complaining about abandoned or overtime containers. They should be prepared to see more overtime containers.”
He lamented that, with their insensitive attitude, the terminal operators are stifling trade facilitation and making life difficult for the average Nigerian, insisting that the outrageous charges they incur from the terminal operators are enormous.

“For instance, if you spend only 10 days in the terminal, you are going to pay not less than N96,000.00 to N1 million. When you capture, and make declarations, you now go to the bank to make payments. After that, you come back again and book for the examination.

“The examination you are booking, for example at APMT, will take not less than three to four days for the container to be dropped either for scanning or physical examination.”
He said in addition to the terminal operators’ charges, the freight forwarders also have issues with the Nigeria Customs Service (NCS) on benchmarking of duty, which entails the payment of N7.5 million per container.
“After paying the N7.5 million, you will still get another alert for other payments. In that alert, you can be told anything. The meaning is that after examination, you still need to go back for one thing or the other, either for amendment or matters of disclosure. If care is not taken, you may spend an additional three to five days on examination alone,” he lamented.
He warned that the freight forwarders would resort to the last option of total blockade of the Lagos ports by Monday, October 23, 2023, if the terminal operators fail to reverse the increment

Tanko, who expressed disappointment with former Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, for allegedly supporting the increment, said: “This is the time for war. We will face anybody who supports the increment. We will see the person as a sellout.
“Farinto is one person I have great respect for, but I am totally disappointed with his input in this matter. For him to come out openly and tell us that the terminal operators have the right to increase charges by over 650 percent without consultation, I am not sure that Farinto is still in this industry.”
He also accused the Nigerian Shippers’ Council of complicity in the increment, demanding that the council clearly state its position in the matter as the economic regulator of the ports.
“If the Nigerian Shippers’ Council is not aware of the increment, they should come out and tell us. We want to know whether they are with us or not or are with the foreigners who want to kill us” he said.
Responding to the lifting of import restrictions on 43 trade items, Tanko commended President Bola Ahmed Tinubu for the timely action, adding: “The president has clearly identified our problems and noted that the impact of the policy would soon be seen in the economy.
On the implications the increase will have on export trade, Tanko said the issue of insecurity should be sorted out before talking about local production.

“Because of insecurity, farmers don’t go to their farms anymore. We need exports to grow the economy, but the necessary environment must be created,” he added.