Clearing agents, importers lose over N200 billion to labour strike

Clearing agents and importers have lamented the loss of over N200 billion in demurrage following the two-day closure of the ports in line with the industrial action by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

The labour unions, on June 3, embarked on an indefinite nationwide strike action that resulted in the temporary shutdown of the national grid, plunging the nation into darkness and crippling business and economic activities.

The Maritime Workers Union of Nigeria (MWUN) also joined the nationwide strike in solidarity with the NLC/TUC, leading to the shutdown of seaports.

Consequently, vessels, cargo airplanes and containers were stranded at the ports for two days, accruing demurrages.

The National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Frank Ogunojemite, called out the labour unions for not considering small business owners and Nigerians who are not on paid employment before taking drastic actions.

He stated that the industrial strike caused significant harm to businesses, especially at the ports, resulting in the loss of over N200 billion in demurrage due to trapped cargoes.

Ogunojemite noted that the MWUN joined the strike without considering its implications, and shipping companies and terminal operators did not offer waivers for the strike duration.

He said consequently, clearing agents and importers are left to pay these charges, adding a financial burden to importers already facing high Customs import duty exchange rates.

“Over N200 billion must have been accrued as demurrage for the two days it lasted. It’s time for freight forwarders and the leadership of all maritime associations to unite and resist the NLC and TUC’s incessant calls for industrial actions if we revere the profession. Freight forwarders should wake up and protect their livelihood; they should save their importers from incurring avoidable demurrage as a result of the strike action,” Ogunojemite stated.

The National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, lamented the N200 billion losses incurred on the trapped cargoes at the ports during the two days of strike action.

He explained that shipping lines have offered waivers for Terminal Delivery Orders (TDO) dated June 2 to June 5, but those outside these dates face significant financial penalties.

Fatomilola highlighted the crucial role of the maritime sector in generating revenue for the government, warning of the economic repercussions of disrupted port activities.

He noted that the fuel price hike and high Customs import duty exchange rate are severely impacting businesses and consumers, adding that the ongoing strike between the federal government and labour unions adds to the uncertainty.

“If we don’t trade, the government will not get revenue. The government gets the bulk of its revenue from the maritime sector; crippling business activities at the port is detrimental to the economy,” Fatomilola stated.

Fatomilola urged the government to reach an agreement with workers promptly to avoid further economic damage, emphasizing the potential for increased prices and inflation if the current issues are not resolved swiftly.

“If the federal government and labour do not reach an agreement within these five days that the strike has been suspended, the economy will cripple as the demurrage that will be accrued will be too much burden for the importers to bear.

“Whatever losses we make, we pass them on to the consumers, which is another inflation looming,” he stated.