Tuesday 2 September 2014

EBOLA: European Shipowners Increase Freight Rates On Nigerian-bound Cargoes


European ship owners have made good their threat to increase freight rates on cargoes and also impose surcharge on crew and vessels coming Nigeria and other countries that are currently battling to contain the deadly Ebola Virus Disease in the West African sub-region.
Shipping Position Daily had previously published reports of a likely freight rates hike on cargoes coming to Nigeria, Liberia, Sierra Leone, and Guinea at the onset of the speared 

The confirmation of the hike was discloses last weekend in Lagos by former chief executive officer of Nigerian Shippers Council  and Nigerian Ports Authourity and currently President of Nigerian Chamber of Shipping (NCS); Chief Adebayo Sarumi at a members evening programme.

Chief Sarumi, who acknowledged that Nigerian importers had expressed fear over a likely increase in the freight rate on cargoes to Nigeria as a result of the deadly virus, also confirmed that the fear has become a reality as the both the insurance rates and freight rates have been increased while surcharges have also been imposed.
Also confirming the increase, Director General of the Chamber; Mrs Ify Akerele said that the rates have been increased because Nigeria has become a high risk area, even as she pleaded that the government must do everything possible to bring the situation completely under control.
“It is a tight situation, we can only complain but there is nothing we can do, all hands must be on deck to contain the virus.
“The man that took the virus to Port Harcourt has further compounded the problem we were almost bringing to an end” she said.
The chamber’s boss however blamed the foreigners of wanting to take advantage of the situation by increasing rates adding that the same was done during the unrest in the Niger Delta region.
“She said “Despite the Niger Delat situation, there were still coming, now it Ebola virus and have increased freight rates again
She also disclosed that Chamber will initiate moves with relevant government authorities to negotiate the increase in freight rates with the foreigners.
“We will use the forthcoming African Maritime Summit coming up this month to discuss the issue of negotiation with the European ship owners”.
Also commenting on the increase freight rate, Executive Secretary of the Nigerian Shippers Council (NSC), Mr. Hassan  Bello said that increment was brought to Council’s notice a few days ago.
Hassan explained that these foreign ship owners have a penchant for increasing rates at the slightest opportunity adding that the recent increment in rates is unjustifiable.
He said the Council will use instruments of the International Maritime Organisation to trash the increment in rates. 
“It has just come to our notice but not officially, but I know that the penchant is for carriers to raise all sorts of premiums at any given opportunity.
“I remember the war risk clause which is slapped on cargo on the pretence that Nigeria is at war, these are unjustifiable surcharges.
“We are going to use the Global Shippers Forum to talk the issues”. Hassan added.
Speaking on implication of the increased rates on the economy, Mr. Lucky Amiwero, a logistics expert and President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) said that increment will result in the increased cost of goods and services as importers will transfer  the increased cost to the consumer.
Amiwero explained that the increment is not justifiable because most times the ship crew do not leave their vessels adding that freight can only be increased on the ground of congestion and poor port operation.
“Will the ship owners increase freight rates in the United States because  there is HIV\AIDS in America, so they cannot do not that on health ground”.http://shippingposition.com.ng/article/ebola-european-shipowners-increase-freight-rates-nigerian-bound-cargoes

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