25 February 2019

Nigeria: Shipping Firm Slams Fresh Surcharge On Nigerian Importers

A shipping company that operates in Nigeria, Hapag-Lloyd, has increased its freight rate with the review of its Peak Season Surcharge (PSS) on all container types originating from anywhere in the world to Tin Can Island, and Apapa ports in Lagos, Nigeria.

The German-based firm, which is also the fifth largest shipping company in the world, in a memo obtained by LEADERSHIP, a 20-foot and 40-foot containers from China, Taiwan, Hong Kong, and Macau would pay $700 PSS each.

It also said those from USA and U.S. territories would pay $700 each from March 15; and those coming from the rest of the world would pay €610 on the consignment.

The review it said is to enable it, "maintain a continued high level of service." Accordingly, the company excluded the consignment from the United States of America in the rate review.

The growing demand leads to lack of space on vessels and increasing costs for supplying sufficient equipment. Carriers can implement this surcharge any time and at any level until further notice.

In practice, PSS functions like the General Rate Increase (GRI). It is usually announced as an additional fee on top of the base rate, although it may be cancelled or mitigated at a lower rate.

Hapag-Lloyd said the PSS would become effective from March 1, 2019, until further notice for all origins (excluding USA). It added that consignments from USA would also pay PSS from March 15, 2019 until further notice.

According to the company, a 20-foot and 40-foot containers from China, Taiwan, Hong Kong, and Macau would pay $700 PSS each; while those from USA and U.S. territories would pay $700 each from March 15; and those coming from the rest of the world would pay €610 on the consignment.

Meanwhile, the leading shipping firm, Maersk also introduced PSS taking effect from February 15, but excluded TinCan, Apapa and Onne Ports in Nigeria.

It stated: "Maersk is introducing the Peak Season Surcharge for all cargo from Pakistan to West Africa countries (excluding Tin Can Island Port, NG, Apapa, NG and Onne, NG) with effective from 15th February 2019."

Hapag-Lloyd had in November last year introduced PSS for all container types to Nigeria at the rate of $505 and $450 each. It has a fleet of 222 modern container ships and a total transport capacity of 1.6 million TEU (Twenty Foot Equivalent Unit).

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