Roll-on Roll-off (RORO) vehicle terminal at Tin Can Island Port, Five Star Logistics, has increased its storage charges, citing the economic downturn and an increase in the exchange rate of naira as reasons for the hike.
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The upward review in storage charges, according to the terminal, will affect all categories of cargoes effective October 15, 2023.

This is the second time in the year that Five Star Logistics Terminal has increased its charges without the intervention of the economic regulators despite the Memorandum of Understanding (MoU) signed by the Nigerian Shippers Council (NSC) and the Federal Competition and Consumer Protection Commission (FCCPC) to tackle arbitrary charges and trade practices at the nation’s ports.

The idea of the collaboration was to bring sanity in the conduct of shipping and ports business to ensure harmony, fair trade practices and efficiency in the sector, but no action has been taken to protect imports and exporters in the country.

In a circular sent to all agents and receivers by the terminal operator on Saturday, stated: “Due to the current economic situation of our country, our operational expenses have increased exponentially as a result of inflationary pressures and Naira devaluation.”

According to the circular, the first period now for imported vehicles has been increased from N2, 000 per day to N10, 000, while the container last period will now pay N105, 000 per day.

Apart from this, the new rates also showed that any container that stays an extra five days in the terminal will be made to pay N525, 000 as additional charges, compared to N70, 000 charged before.

The circular continues: “The need to drive for improved service delivery has necessitated an upward review in storage charges for all cargoes with effect from October 15, 2023, as per having obtained approval of relevant authorities.

“We greatly appreciate your cooperation and understanding. We are dedicated to bringing you the best services. The terminal has also gone ahead to provide its new rates as it concerns cargo storage.”

The National Public Relations Officer, the Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, expressed frustration and disappointment with the terminal for increasing their storage charges.

He said the company’s service is poor and does not justify the price increase, while also criticising the lack of improvements in customs processes and road infrastructure leading to the port.

Fatomilola expressed disappointment with the shippers’ council and its failure to address these issues effectively.

“It is pure madness. This is the second time this year Five Star Logistics has increased its charges. I have never seen it anywhere else. Where you want to increase your charges, you are not improving your service. The service of Five Star is the poorest of all terminals. The location of the vehicle, you can’t get it. I don’t know the essence of the prices they are increasing.

“The customs are not improving their network. You want to go and write your Terminal Delivery Orders (TDO) without customs at the gate. You can’t write your TDO. That means the rent will be piling up. What have they done to improve the network at the gate with customs? Did they put pressure on customs at the gate, which resumes duty around 1pm,” he said.

Fatomilola said freight forwarders and Customs brokers will kick against the increase and are ready to biker with the terminal operator.
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