Even as the federal government is said to be determined to reduce the
cost of doing business at Nigerian seaports and to move ahead in its
current global ranking on ease of doing business index, findings have
shown that some shipping companies operating in the country are taking
advantage of the limited free demurrage days to fleece importers of
billions of naira on a daily basis.
EYES OF LAGOS investigations show that importers are losing billions of
naira to demurrage charges by shipping companies operating in the
nation’s seaports.
This was because Nigeria demurrage-free days are the lowest among its
peers in neighboring West and Central Africa. According to investigation
if not addressed would affect Nigeria ranking in the next global index
of ease of doing business.
Demurrage is the charge levied by the shipping line on the consignee if
the container is not cleared and returned to the nominated empty depot
within the specified free days offered by the line. Demurrage is divided
into three periods -First, second and third -that is also far more
expensive than others in the sub-region
Investigations have shown that no shippers or importers can clear it’s
consignments out of the ports within the stipulated three days free
period.
According to document sighted by EYES OF LAGOS, shipping companies’
demurrage fees are as follows: First period N4,500 as against N1, 512
collected in Ghana, second period N7,500 as against N1,890 collected by
Ghana and , third period 12,500 as against N1,890 in Ghana.
And with 1,396,057 TEU of containers received at the Lagos Ports in
2013; 1,551,540 in 2014 and another 1,317,212 in 2015, importers and
Shippers have lost over N100billion to Shipping companies in demurrage
charges.
Data from the Nigeria Shippers Council (NSC) indicate that Nigeria has
five demurrage free days, which is low compared to neighbouring Benin
Republic, which has ten demurrage-free days. Ghana, on the other hand,
has eight demurrage-free days.
Meanwhile cargo dwell time (time to clear cargo) takes between 20 and 28
days in Nigerian ports, while in Benin Republic, it takes between10 and
15 days. For Ghana, it is between 12 and 14 days and Togo eight and 12
days.
It was gathered that importers who clear their goods from Nigerian
ports, pay about 14 charges, while those that clear from off-dock
terminals have 20 charges to pay before taking delivery of their
consignments.
Confirming this, a recent World Bank report attributed long dwell time
of cargo and high cost of doing business at Nigerian ports to
rent-seeking on the part of operators especially shipping companies
rather than fast tracking cargo clearance.
Maritime experts have argued that the cost of doing business in Nigerian
ports started increasing after the concession exercise, which was
initially aimed at reducing the cost at maximum efficiency.
Speaking to us, the former Public Relations Officer of Save
Nigeria Freight Forwarders Importers Exporters Coalition (SNFFIEC),
David Pius confirmed that it was difficult to clear consignments within
the stipulated free period provided by shipping companies in Nigeria.
Though, he also attributed dishonest declaration by importers as part of
what delay consignments at Seaports and fuel high demurrage.
He said, “There is first, second and third period but as an importer, if
you escape the first period, you can’t escape the second period and the
third is the highest, N12,500 depending on the terminal. “After that
12,500 they can add any amount depending on how many days the
consignments used at the terminal.
Another shipping expert, Tony Anakebe, blamed operators for the delays,
saying that when clearing agents’ book for examination, it takes between
five to seven days to drop the container for either scanning or
examination.
“The service providers are making money from importers. Take for
instance, almost 30 percent of the container deposits collected by
shipping companies are not refunded and this generates billions of
naira”, he added.
