A don in the Lagos Business School (LBS), Dr Frank Ojadi has warned that importers will bear the cost implication of the recent ban placed on four shipping companies by the Nigerian Ports Authority (NPA).
Speaking to Nigerian Tribune in an exclusive chat, Dr Frank Ojadi stated that Nigerians will also suffer the cost implication of the holding bay directive of the NPA. According to Dr Ojadi, “The truth of the matter is that Maersk Line and other shipping lines that were banned for 10 days will simply transfer the cost of either delaying their vessel call or sending their vessels back due to the NPA suspension on the importers of the cargoes the ship are carrying.
“It is Nigerians that lost, not the shipping company. I am sure the suspension included not allowing any ships belonging to this shipping line to discharge cargoes at any Nigerian ports. If the sanction included that, then importers will bear the cost of the delay because in such scenario, the ships of such shipping companies will have longer dwell time.
“Under the 10 days ban, some of the vessels of these shipping companies could have anchored on the high sea, waiting for the 10 days ban to be over. What this means is that the waiting vessel will miss its earlier scheduled time to berth. Each extra day the cargoes on board that vessel spend on the high sea at anchorage, such cargoes will incur demurrage.
“If the vessel had planned to spend three days, and ends up spending extra days due to the NPA ban, those extra days will come at a cost, and what the shipping line will just do is to share those extra cost on all the cargoes it is carrying. So at the end of the day, importers will pay the cost of the ban. The ships won’t discharge their contents until the importers pay.
“For the shipping companies that were banned, they will only suffer loss in the disorganisation of their call schedule for their vessels. Ships carrying cargoes sometimes visit up to three or four countries to discharge thier content. So the ban will affect the call time of the vessels of the banned shipping companies, forcing many of the shipping lines to reschedule their vessel call time.”
On the holding bay directive of the NPA, Dr Ojadi explained that Nigerian importers will bear the cost of moving the containers from the bays to the ports.
It will be recalled that four shipping companies, Maersk Line, Cosco Shipping, APS and Lansal were suspended by the NPA for their inability to upgrade their holding bays capacities. The suspension lasted for 10 days before the NPA lifted the suspension.