At least two shipping lines operating in Nigeria have increased their freight rate with the introduction of what they called ‘Peak Season Surcharge’ (PSS) on all cargoes originating from anywhere in the world to Tin Can, Apapa ports in Lagos and Onne port in Rivers State.
The surcharge was announced by both Hapag-Lloyd and CMA CGM via electronic mails last week.
German-based shipping firm; Hapag Lloyd in the mail indicated that, a 20-foot and 40-foot container from China, Taiwan, Hong Kong, and Macau , USA and U.S. territories would pay $700 each from March 15; and those coming from other parts of the world would pay €610 on each consignment.
It said the review is to enable it, “maintain a continued high level of service.”
In practice, Peak Season Surcharge functions like the General Rate Increase (GRI). It is usually announced as an additional fee on top of the base rate, although it may be cancelled or mitigated at a lower rate.
Hapag-Lloyd said the PSS would become effective from March 1, 2019, until further notice for all origins (excluding USA ).
Shipping Position Daily recalls that Maersk Line had also introduced PSS taking effect from February 15, but excluded Tin Can, Apapa and Onne Ports in Nigeria.
It stated: “Maersk is introducing the Peak Season Surcharge for all cargo from Pakistan to West Africa countries (excluding Tin Can Island Port, NG, Apapa, NG and Onne, NG) with effective from 15th February 2019.”
Recall also that, Hapag-Lloyd had in November last year introduced PSS for all container types to Nigeria at the rate of $505 and $450 each.
On its part, CMA CGM, which maintains regular voyages to Nigeria, in a memo dated February 22, 2019, indicated that the surcharge applies to cargoes destined for Apapa, Tin Can and Onne ports.
Specifically, it stated that effective March 7, 2019, the new rates of a uniform peak season surcharge of $750 will be imposed on all categories of cargoes; dry, reefer, OOG and Breakbulk
It listed origin of cargoes to be affected by the surcharge on Apapa, Tin Can and Onne ports as: Asia including China, South Korea, Taiwan, Japan, Southeast Asia and Bangladesh. Others are India Subcontinent and Middle East Gulf as well as North and South America, including cargoes coming from African countries.
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