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Home » RECESSION: PTML Terminal Woos Vehicle Importers, Sister Firm Cuts Freight Rate  

RECESSION: PTML Terminal Woos Vehicle Importers, Sister Firm Cuts Freight Rate  

by Joshua
December 7, 2016
in Uncategorized

There are indications that port concessionaire; PTML Terminals through her shipping arm; Grimaldi Shipping may have cut down its freight rates on vehicle importation in order to attract more vehicle importers to the terminal.

Shipping Position Daily investigations last week has however revealed that despite efforts by the terminal, vehicle import through the terminal has continued to dwindle compared to previous years.
The freight charges before the economic recession and the forex policy of the government was US$1,400 per vehicle but now they are collecting US$900 per vehicle, from America to Nigeria.
Confirming to our correspondent at the terminal last week, Public Relations Officer of the PTML Command of Nigeria Customs Service, Mr. Steve Okonmah said that despite the slash in freight rates by Grimaldi shipping and PTML Terminal, nothing has changed. He said that the move has failed to translate into increased in cargo throughput.

Giving a breakdown in the vehicle activities at the terminal between year 2015 and 2016, Okonmah said that between January to November 2016, 125 vessels called at the terminal compared to 110 vessels recorded in the same period of 2016. The figure he reeled out showed a shortfall of 40 vessels.

According to him, 20 foot containers in 2015 was 15,352,000 containers came into the terminal while in 2016 it was 10, 928,000 with a shortfall of 4,414,000.

In the case of 40foot containers the figure stood at 10,000 in 2015 while in 2016 the figure was 8,000. According to the image maker, TEU in 2015 was 35,000 in 2015 while in 2016 we have 27,000. RORO was 10, 29 in 2015 while in 2016 it was 8, 71.

“The only area that increased was cars. In cars we had 22, 575 in 2015 and 26, 614 in 2016, these were cars not containerized. In the area of van, we had 35,000 in 2015 but in 2016 we had 22,000. Big vehicles was 3,406 in 2015 compared to 2,728 in 2016”

Confirming the reduction in the shipping rates, he said “Grimaldi lowered their shipping rates in order to support people to import more, but surprisingly it is not working, you cannot go and force people to import, where is the foreign exchange they are going to use? Despite the slash in freight rate, nothing has changed” he said

Also speaking with our correspondent, a clearing agent operating at the PTML Terminal, Elder Sunday Nnebeh described the year 2016 as the worst that has ever been witnessed in the history of Nigerian ports.

He said that government policies have affected so many importers so much that they could not clear their cargoes from the port. He said the cargoes seen at the port are those stuck on demurrage‎. ‎

"This December 2016 is the worst year ever that we have witnessed in terms of importation, the policy has affected all operators, even Abacha that we termed the worst was not like this"

"PTML today hardly get one ship in a week unless there is another shipping company bringing cargo to them, even though they reduced their freight charges there was no improvement"

"They used to charge US$1,400 per vehicle but now they are collecting US$900U, from America to Nigeria, yet people are not importing. It will also be a huge loss for them if people are not importing because they cannot bring in an empty vessel, they will pay heavily here in dollars" he said

Elder Nnebeh however said that the situation is not peculiar to Grimaldi shipping alone, it is also prevalent at Five Star Logistics Terminal and Ports and Cargo Terminal.

He told our correspondent that all the shipping companies were forced to reduce their freight charges because without importation, the bargaining power lies with the importer.

Also confirming the lull at the terminal, Chairman of National Association of Government Approved Freight Forwarders (NAGAFF) at PTMLL chapter, Mr. George Okafor told our correspondent that many of the vehicles seen inside the terminal are those that the owners were not having money to clear

On his part, former image maker of Association of Nigeria Licensed Customs Agents (ANLCA) Mr. Gani Adeola said that generally, there has been no improvement in vehicle importation despite the yuletide season.
According to him, the situation at Grimaldi and PTML Terminal is applicable at other terminals. He also noted that the rate of PTML staff has reduced drastically by 70percent. According him, presently at the account department, there are just 4 staff which formally they were more than 20.
"When you want to measure activities at a terminal or shipping line, you judge from the number of vessels that are coming in. In a month sometimes, Grimaldi does not have a single vessel; meanwhile they usually have two vessels in a week before now. Those coming in now are struggling, a vessel that is supposed to come in with 4,500 vehicles now come in with 50 cars and forty containers"

"Nothing has changed because the bottlenecks are still there, the forex policy, the auto policy and so on. We have not heard anything from this government about the maritime sector policy, nothing has changed, we are still expecting them to bring positive policies that would encourage investors" he said
 


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