Congestion: Storage, demurrage fees now over N1 million, importers lament

Some cargo owners have lamented that due to the lingering congestion crisis occasioned by prevalence of overtime cargoes at the ports, the huge bills being handed out to importers by shipping companies and terminal operators is discouraging efforts to clear cargoes. This is even as they (importers) lamented that currently, some terminal operators have slammed N500,000 as storage fees for some trapped cargoes while some shipping companies are already demanding in excess of N600,000 as demurrage fees on same set of cargoes.

Speaking with the Nigerian Tribune exclusively, an importer, Mr. Babajide Komolafe explained that some cargo owners are beginning to forget that they still have cargoes at the ports due to the huge cost of bills they have incurred as a result of the congestion at the ports.

According to Mr. Komolafe, “There is congestion at the ports due to too many uncleared cargoes. Between the Nigerian Ports Authority (NPA) and the Nigeria Customs Service (NCS), we don’t know who is statutorily empowered to decongest the ports of these overtime cargoes. The two agencies keep shifting the blame between each other, and this has caused a backlog of delay for other containers.

“As I speak to you, my 20 feet container which contains used auto spare parts equipment has incurred over N500,000 as storage charges and about N600,000 as demurrage charges. This is annoying when you realize that the whole customs duty for the same container is not more than N350,000. How do you expect me to go and clear such cargo?

“Yes, the container has overstayed in the ports because it got trapped in the congestion crisis which wasn’t a fault of mine. Now I want to clear the consignment, but I am being asked to go and pay N500,000 as storage charges and N600,000 as demurrage charges.

“Some of my friends had initially complained about similar experiences to me. They warned me not to bother going to the ports to make efforts to clear, that the bills that will be slammed on the cargo will be too outrageous for me to bear since it was trapped in the congestion crisis rocking the ports. I thought it was a joke.

“I don’t have N600,000 to pay as demurrage fees, neither do I have N500,000 to pay as storage fees, but the cargo is still there in the ports. I pray the operators grant a concession on such cargoes, because I don’t understand when storage and demurrage fees double what should be paid as customs duty?”

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