Post by Trade Coach on Aug 20, 2018 20:23:17 GMT 1
APAPA PORTS NATIONAL MENACE: FG SHOULD GRANT 100% WAIVER ON MASSIVE DEMURRAGE
That the movements to and from Apapa ports have become nightmares to many business owners, especially importers and exporters of goods is no longer news.
But the fresh news is the call by the umbrella body of Organised Private Sector (OPS), the Nigeria Employers’ Consultative Association (NECA) on Federal Government to prevail on Nigeria Customs to halt the massive demurrage being placed on vehicles who for not fault of theirs are being delayed more than necessary in the ports following the traffic headache.
In a reaction, concerned port ushers has expressed concern at the adverse effect of the national menace of port congestion and perpetual blockage of roads leading to the Apapa Ports on Organised Businesses.
Also expressing worries, many port business owners lamented the colossal loss incurred by companies involved in the importation of sensitive raw materials and finished products, including pharmaceuticals materials. According to the customs clearing agents, “clearing these goods from the ports has become a herculean task. Where these goods and raw materials are finally retrieved, they may have to be destroyed due to quality challenges related to temperature issues, having overstayed beyond safe period in the ports”.
To compound the already bad situation, there is the heavy demurrage that is being incurred as a result of the congestion and delays, which is neither the fault of the companies nor within their control. For instance, demurrage on 20 feet and 40 feet containers are N60, 000 and N90, 000 per day respectively. Where the container stays from June and only released in mid-August, it would have accrued a demurrage of N6.84m in one 40 feet container alone. This is apart from the increased freight costs from transporters due to the significant downtime of haulage trucks caused by the congestion. This accounts for the rising cases of abandoned containers and imports at the ports.
While commending the on-going efforts by Government to clear the Apapa ports of congestions, government is urged that urgent steps be taken to stem the dire economic hardships that companies are going through in using the ports.
Federal Government should direct the Customs Service to exercise 100 per cent waiver of the massive demurrage incurred by Companies due to the congestion and delays. This will put action to Government’s avowed commitment to improving ease of doing business in the country.