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Home » Shippers Kick Against Maersk Line’s Unilateral $300 Peak Season Surcharge On Nigeria, Others

Shippers Kick Against Maersk Line’s Unilateral $300 Peak Season Surcharge On Nigeria, Others

By Joshua Yousouph

by Joshua
January 17, 2024
in Featured, News

Importers under the aegis of Shippers Association Lagos State (SALS) have appealed for clarification and intervention regarding Maersk Line’s unilateral imposition of a $300 Peak Season Surcharge (PSS) on Asian-Nigerian cargo routes.

 

In a letter signed by the President of SALS, Mr. Leo Ezeani Ogamba and which was made available to our correspondent, it noted that members of the association recently read from a newspaper about an unsettling news of Maersk Line’s decision to levy a $300 Peak Season Surcharge  on cargoes destined for Nigeria.

 

Expressing deep concern, the President lamented that the surcharge is a deliberate disregard for Nigerian laws and a potential breach of due process, calling for immediate attention to rectify these issues.

 

Highlighting Maersk’s recurrent practice of imposing charges with the intent to negotiate post-payment, Ogamba firmly asserted their refusal to be coerced into funding what they perceive as Maersk Line’s “choke points” in ocean routes. According to him, some shippers in response are rerouting vessels around South Africa, inadvertently causing stress on Maersk’s network.

 

The SALS President challenged Maersk’s claim that the $300 PSS is justified during peak seasons. Citing data from the National Bureau of Statistics (NBS) in Nigeria, which indicates a trade surplus of N3.5 trillion in the third quarter of 2023, SALS questions the legitimacy of the surcharge and demands clarification.

 

Speaking further, Ogamba questioned the reversal of established principles within the contract of afreightment. He stressed that standard industry norms dictate that freight rates to a destination port with available cargoes for a return voyage should be lower, adding that yet Maersk Line’s case seems to defy this logic.

 

He also emphasized that even if the $300 PSS were deemed reasonable, the lack of due process in its implementation renders it non-payable.

 

“This has been Maersk’s perennial practice with intent to negotiate thereafter, even when shippers have started paying. This is no longer acceptable on the ground that my members will not be coerced to pay for Maersk line’s “choke points” in ocean routes which triggers disruptions coming from its reduced number of transits and in the circumstances decided to reroute their vessels around south Africa which in turn is also putting stress on its network” the letter read.

 

Beyond the surcharge issue, SALS President raised concerns about the exclusion of cargo owners in Lagos from pivotal discussions on shipping companies and terminal charges. He noted that this exclusion was evident during discussions on renomination fee increases and ongoing terminal charges increments.


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