Nigeria and other members of the Union of African Shippers’ Councils (UASC) have expressed concern over the continuous imposition of peak season surcharges (PSS), high freight rates and other arbitrary fees by shipping lines, which significantly threaten trade competitiveness across Africa.
Global shipping giant, especially CMA CGM, has continued to impose PSS on cargoes routed to Nigeria, Côte d’Ivoire, the Republic of Congo, Benin Republic, Ghana and other West African nations until further notice.
The concerns were raised yesterday, at the opening of a two-day Sub-Regional Seminar and Meeting of Standing Committee No. 1 on Trade and Transport of the Union of African Shippers’ Councils, held in Lagos.
The event, themed: “The Readiness of Countries of West and Central Africa in the Implementation of the Agreement Establishing the AfCFTA-The Role of Shippers’ Councils,” was organised by the Nigerian Shippers’ Council (NSC) and UASC under the auspices of the Federal Ministry of Marine and Blue Economy.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, stressed that the effect of the peak season surcharge recently introduced by shipping lines on the economies of West and Central Africa has been the major issue for discussion by the Standing Committee No.1.
Oyetola, who was represented by the Permanent Secretary of the ministry, Mr Oloruntola Olufemi, noted that PSS, arbitrary surcharges and high freight rates are recurring challenges in the sub-region that continue to erode trade competitiveness, placing undue burdens on importers and exporters.
“It is, therefore, imperative that member States, through UASC, engage constructively with shipping lines and international partners to ensure transparency, fairness, and equity in the determination of surcharges and freight rates. Our goal must be to establish mutually beneficial frameworks that safeguard shippers’ interests while ensuring the sustainability of shipping services,” he said.
He urged African nations to confront persistent constraints in transport logistics, trade facilitation, port efficiency, and shipping costs to unlock trade opportunities.
Oyetola said these are areas where National Shippers’ Councils of countries must play a decisive and proactive role, aligning their interventions with the objectives of the African Union and the implementation roadmap of the African Continental Free Trade Area (AfCFTA).
According to him, across the sub-region, shippers’ councils occupy a strategic position as advocates of shippers’ interests and regulators of port economic activities.
He said that by promoting fair freight rates, transparent shipping practices, and efficient cargo movement, national shippers’ councils help reduce the cost of trade and enhance the competitiveness of African exports.
Also speaking, the Executive Secretary/Chief Executive Officer of the Nigerian Shippers’ Council, Dr Pius Akutah, lamented that the peak season surcharges and other arbitrary charges imposed by shipping lines have serious implications for trade competitiveness in West and Central Africa.
He said the theme of the seminar underscores the need for the sub-region to position itself effectively in the emerging continental trade architecture.
In his remarks earlier, the Secretary-General of the Union of African Shippers’ Councils (UASC), Abdurahman Abba Kafougou, urged the 19 member states to intensify efforts toward harnessing the opportunities offered by the AfCFTA for the benefit of African shippers.