LICENSED customs agents warn that French shipping company CMA CGM’s proposed emergency fuel surcharge on containers, due to heightened tensions in the Strait of Hormuz, could disrupt trade and raise business costs.
CMA CGM is one of the leading shippers goods into Nigeria. The shipping company announced in a Reuters report last week that effective August 1, it would impose an emergency surcharge of between $65 and $165 per container due to the renewed tension in the Strait of Hormuz.
The report added that following escalated hostilities in the Strait of Hormuz, fuel prices have sharply increased, reversing recent easing trends.
“As a result, bunker costs have significantly increased across all regions and trades, impacting the overall cost of ocean transportation. The surcharge, which will range from $65 to $165 per container, will be in place until further notice. The notice was dated Tuesday but was sent in an email to reporters on Wednesday,” the report read in part.
Reacting to the development, Abayomi Duyile, Chairman of the Apapa Chapter of the National Council of Managing Directors of Licensed Customs Agents, expressed that customs practitioners are already overwhelmed by charges, stating that any further increase would be unacceptable.
“We went to shut down the place. It has to do with an increase in their services. And it took a while, after much discussion, that we agreed to a slight increase that she passed down to give them. For now, we won’t ask because nothing has been implemented.
“The way you read it, we have to ask questions. Because for now, the charges they are giving us are not much to talk of increasing it again. In case they do that, the cost will be too much now. Already they are under a serious burden. Because the shipping fee alone is huge.
“So by the time they come and do this again, it will be a problem for us on the ground. As far as we are concerned, it’s not acceptable to us. Any increase at this time is not acceptable to us. It’s going to kill an already bad system. It’s going to make it worse,” he said.
The Head of Planning and Strategy at the Association of Nigerian Licensed Customs Agents, Mr. Pius Ujubuonu, expressed concerns that a proposed surcharge would lead Nigerian customers to choose other shipping companies.
He emphasized that with the deregulation of the shipping industry, customers have alternatives.
Ujubuonu urged the Nigerian Shippers’ Council to intervene before the surcharge takes effect, warning that if not addressed, other shipping companies might follow suit, exacerbating inflation and negatively impacting the local economy.
He highlighted that the surcharge could significantly affect trade income and contribute to existing inflation levels in Nigeria.