Cargo Congestion Worsens At Seaports: Addressing Bad Governance.

Congestion is increasing at seaports due to the reluctance of agents and importers to take delivery of their consignments amidst fears of attacks by #Endbadgovernance protesters. This protest, which began nationwide on August 1, has resulted in reduced activities and capacity at the Lagos ports.

Although approximately 3,000 containers are slated to move out daily from the ports in Lagos, no significant activities have been observed since the protest started. Despite assurances from the Port Police Command, the Nigeria Customs Service (NCS), and the Nigerian Ports Authority (NPA) regarding port security, importers and clearing agents have refrained from showing up, aside from conducting online transactions and processing of documents.

Furthermore, the Nigerian Shippers Council (NSC), National Inland Waterways (NIWA), and Nigerian Maritime Administration and Safety Agency (NIMASA) are offering limited services as their staff’s presence in offices remains uncertain due to the ongoing protest.

Customs commands at Apapa Port, Tin Can Island Port, Port and Terminal Multiservices Limited (PTML), and Kirikiri Lighter Terminal (KLT) are also experiencing reduced activities, with officers waiting for importers and clearing agents who are hesitant to come in.

Eugene Nweke, former President of the National Association of Government Approved Freight Forwarders (NAGAFF), emphasized the importance of safeguarding cargo during strikes or protests, stating that freight logistics providers fall under the category of essential service providers. He questioned the wisdom of paying for imports that could potentially be vandalized or looted during the ongoing unrest.

Jayeola Ogamode, Managing Director of Sceptre Consult, highlighted the impact of the protest on port operations, including the presence of hoodlums and the inability of banks to open for import duty payments. However, Ogamode assured that port operations, vessel berthing, and cargo discharge are ongoing without major interruptions from terminal operators, Customs, and other agencies. Nonetheless, caution remains high among responsible agents who are avoiding taking delivery of consignments due to potential risks posed by the ongoing protest and criminal activities.

The protest’s implications include additional expenses for importers in the form of daily demurrage costs, ranging from N11,419 to N17,129 per container. The only way to avoid these costs is if the terminal operators grant storage waivers.

Despite previous assurances from the Nigeria Customs Service (NCS), Apapa command regarding officer presence to attend to port users’ needs, their capacity has also been significantly reduced, with only a few clearing agents conducting online business.