Friday 20 March 2015

High Cost of Clearing Forces Importers to Abandon Goods at Seaports

Shippers in the country have attributed cost of clearing of consignments as the reason why importers abandon their goods at the nation’s seaports.

Often times, many importers abandon their cargoes at the nation’s seaports located in Lagos, Koko, Sapele, Calabar, Port Harcourt, Warri and Onne after such goods have accumulated demurrage running into several millions of naira.


Once the consignee, importer or agent fails to take the cargo out of the terminal at the stipulated time, the Nigeria Customs Service (NCS) may declare such cargo as abandoned cargo and eventually dispose it off as “overtime cargo”.

Giving reasons for this development, the Shippers Association of Lagos State (SALS) said importers had been abandoning their cargoes at Nigerian ports, due to high costs of clearing such cargoes.

The President of the association, Mr. Nicol Jonathan expressed dismay that the cost of cargo clearance has become “uncontrollable.”

As a way out, he called for a review of the nation’s import policy so that Nigerians can begin to reap the benefits in the maritime industry.

Jonathan said the sliding naira exchange rate had also slowed down business at the ports. According to him, clearing a 20 feet container is costing as much as N840, 000 while to clear a 40 feet container now cost N1.2 million. He said Customs, shipping and terminal charges, as well as local transportation charges had not changed in spite of the port reforms announced by the federal government.

While decrying the poor state of things in the shipping sector of the economy, he said: “Our tariff management has not changed. Rather it is getting more complicated with incessant queries on goods. Yes, we must comply with international best practices but importers do not have so much money to pay for un-receipted items.

“Diversion of cargo to other African ports has become the option for many importers. The purpose of doing business is to make some profit. The outlets of official and unofficial payments are unbearable. Very soon, car terminals will be empty”.

Meanwhile, congestion is beginning to gather momentum in the nation’s seaports as importers have abandoned their cargoes following the continuous slide of the naira against the United States dollar. (Thisday)

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