Freight Monitor

VIN strike: Nigeria- bound RORO vessels divert to Cotonou port

—-as PTML counts losses

Eyewitness reporter

The ongoing strike action by the agitating Customs brokers at the Lagos ports to protest the implementation of the controversial Vehicles identification Number (VIN) valuation policy of the Customs have started to have a heavy toll on the operations of the Roll-on -Roll-Off facilities at the ports.

The Port and Terminals Multiservices Limited (PTML), operators of the biggest RORO facilities at the Lagos ports, have incurred heavy financial losses to the strike.

Mr. Tunde Keshinro, the General Manager of the PTML, lamented that the terminal has so far lost charges accruals from over 6,000 vehicles which the terminal could have handled since the strike started but were prevented from coming to the facility for lack of space to discharge their cargo.

Speaking on Tuesday at the stakeholders’ meeting convened by the Nigeria Customs Service to resolve the VIN controversy, Keshinro revealed that RORO vessels destined for the terminal now divert and anchor at Cotonou Port, the Republic of Benin due to lack of space to discharge their cargo at the PTML terminals.

“The strike has created a disruption in our services.

“We handle a minimum of 800 vehicles per day at the terminal.

“But since the strike started, we have lost over 6, 000 units of vehicles which we could have handled but because of lack of space to discharge more units, the vessels destined for the terminal now anchor at Cotonou Port” the PTML manager lamented.

He appealed for quick resolution of the crisis between the Customs and their agents.

Keshinro further admonished the Customs authority to be more transparent in the implementation of the controversial valuation policy by making public the database used for generating the values on vehicles.

“There is no transparency in the implementation of the new valuation policy. Perhaps, that is the area of concern of the protesting agents.

” The Customs authority should make public the database used to arrive at the values on vehicles under the new system.” he declared.

The PTML manager asked the Customs authority to factor in the economic situation in the country and the effects of COVID-19 on businesses worldwide before they arrive at the values on goods.

He wondered why such pains should be visited on the agents in the maritime sector while other sectors of the economy such as aviation got a financial reprieve from the government.

“Even, governments of the advanced countries gave financial incentives to their citizens to reflate the economy” he noted.

Keshinro further stated that his terminal felt the impact of the strike because the valuation policy affects mostly used vehicles which form 85 percent of the category of vehicles the terminal handles with fewer new vehicles.

It could be recalled that since the strike commenced on 17th, February 2022, the protesting agents have refused to take delivery of vehicles at the RORO terminals, thus causing a glut of cargo which makes the terminal operators express concern over possible congestion and lack of space to accommodate additional cargo.

Though the agents have agreed to resume the clearing process for general goods after the intervention of the Nigerian Shippers’ Council, but have shunned taking delivery of vehicles until the whole controversy surrounding the VIN implementations is resolved.

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Freight Monitor

APFFLON: A clout chaser in maritime industry?

Funso OLOJO

The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has gradually turned itself into an “attack dog’ in the maritime industry.

Established about 10 years ago, the association has consistently turned itself into an “opposition party” to other registered associations recognized by the Council of Regulation of Freight Forwarding in Nigeria (CRFFN), working at cross purposes with the registered groups.

The CRFFN is the regulatory agency of government which regulates the activities and operations in the freight forwarding industry in Nigeria.

For individuals, corporate bodies and freight forwarding groups to operate legitimately in the industry, they must be registered with the CRFFN.

So any individual, corporate body and freight forwarding group which is not recognized and registered with the CRFFN is deemed to be operating illegally in the freight forwarding industry in Nigeria.

Enquiries made at the CRFFN showed that five freight forwarding Associations were fully recognized and registered by the industry’s regulatory body.

They include Association of Nigerian Licensed Customs Agents(ANLCA), National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), National Association of Government Approved Freight Forwarders (NAGAFF), National Association of Freight Forwarders and Consolidators(NAFFAC) and Association of Registered Freight Forwarders of Nigeria(AREFF).

APFFLON was conspicuously missing on the registration book of the CRFFN.

It was gathered that attempts by the association to get registered with CRFFN over the years have failed due to the yarning gaps discovered in the registration requirements presented by the association.

To put it bluntly and succinctly, APFFLON is not a registered freight forwarding group with the CRFFN but has continued to operate in breach of the statutory requirements of the regulatory agency.

This make its operations illegal and contrary to the provisions of the law establishing CRFFN.

Curiously, the unregistered body has been more vocal and hysterical about issues and events in the industry.

Sources claimed that the leadership of the group have become frustrated by their series of failed attempts to get registered with the CRFFN, hence the determination and resolve to oppose anything that other registered associations agreed on.

On several occasions, APFFLON has make it a duty to work at cross purposes with other registered associations in its bid to vent its frustration of not being registered and forcefully thrust itself into reckoning.

A case in point is the controversial tariff hike by the West African Containers Terminal(WACT), Onne.

Following the orchestrated opposition to the increment spearheaded by APFFLON, the Nigerian Shippers’ Council came out with an official reaction to the development.

According to the industry’s economic regulator, based on its interaction with the Onne terminal operator, all the relevant stakeholders, especially the freight forwarders through their associations, were adequately consulted and sensitised over the tariff increase.

Associations like ANLCA,NAGAFF, AREFF ,ARFFN and Council of Managing Directors of Licensed Customs Agents were all consulted.

Despite the status of APFFLON as non- registered association, the management of WACT still reached out to the group to get an introductory letter from CRFFN, as a regulatory agency, in order to be part of the engagement process.

However, APFFLON could not muster enough courage to approach CRFFN for such referral.

On what basis?

Rather than acknowledge its shortcomings and eat the humble pie, APFFLON went to town with wrong narratives to deceive the freight forwarding community and whip up public sentiments against the Shippers’ Council and WACT, saying the group was not invited to be part of the engagement process.

“According to WACT, prior to the implementation of the new tariff structure, WACT engaged extensively

with the leadership of registered clearing agents in Onne, including the Association of Nigerian Licensed Customs Agents (ANLCA), the National Association of Government Approved Freight Forwarders (NAGAFF), the
Association of Registered Freight Forwarders of Nigeria (ARFFN), and the National Council of Managing Directors of Licensed Customs Agents.”

“The discussions led to a mutual agreement that the implementation would be phased to ease the impact on port users” explained the NSC.

“According to WACT, APFFLON has, for two years,failed to obtain an introductory letter from the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), which is a prerequisite for recognition as an agent.

“As such, their inability to participate in the stakeholder engagement process was due to their own non-compliance with regulatory requirements and not an act of exclusion by WACT” the Council further disclosed.

Despite this clarification made by the Council, APFFLON continued with its propaganda to twist the narrative and distort facts surrounding the issue.

Like a bull in the China’s shop, APFFLON has continued to use the media to bully the NSC, further exposing its frustration for not being factored in by WACT in the negotiation and engagement process.

Rather that dissipate its lean resources on an inordinate campaign of calumny against the industry’s regulatory agency, APFFLON should focus its energy on how to perfect its flawed registration with the CRFFN so that its voice could be respected and action legal in the eye of the law.

Even though there is freedom of association as enshrined in the Nigerian constitution, the premise on which the group normally bases its instrusive activities, it however doesn’t distract from the fact that the association is acting in the breach of the industry law as enshrined in CRFFN provisions.

Before APFFLON perfects its registration with the regulatory agency in the freight forwarding industry, its action will continue to attract opprobrium

from deserning industry operators who regard its confrontational approach to issues as a sign of frustration and an act of clout- chasing to curry government recognition and patronage.

Freight Monitor

Ozo Chukwurah preaches peace in ANLCA

— praises efforts of Emenike, Farinto, Ipariola, Abdullaziz, Oforbike , Obiora,Okafor in keeping ANLCA together.

— crowns Wale Cole the new ‘governor’ of Tin Can chapter

Funso OLOJO

In what appears to the a new dawn of peace in the Association of Nigerian Licensed Customs Agents(ANLCA), the erswhile Vice- Chairman of the Board of Trustees of the Association, Prince Ozo Chukwurah, have praised the current sanity in the hitherto polarized freight forwarders union.

Prince Chukwurah, in an exclusive interview with our reporter, eulogized the efforts of certain individuals for their efforts , commitment and sacrifice that have resulted to the present peace in the ANLCA.

Specifically, he singled out the National President of the association, Mr Nwokeji Emenike for his exemplary leadership,acumen and political sagacity in bringing back the ANLCA from the precipice.

The former Chairman of the Western Zone of the association also praised the sacrifices of Kayode Farinto,the former Acting National President of ANLCA, Alhaji Mukaila Abdullaziz, the former Secretary and later Sole Administrator of the Association, Mr Eniola Ipariola (Anyman), John Oforbike and Obiora Elochukwu which he said has helped to heal the wound inflicted by the years of intractable crisis which rocked the ANLCA to its foundation.

He also shared a kind word for Mr Dennis Oka for(Akataka).

” I want to congratulate Emenike Nwokeji, the National President for keeping the ANLCA together.

” He met a disunited and divided association from the BOT to all the members.

” He was able to stand and weathered the storm and restore peace and harmony to the association.

” I salute his courage and leadership qualities.

” My special recognition to some individuals for their roles in making ANLCA great again.

” In our BOT election, some of these people were humiliated, disenfranchised, yet they stayed in the association.

” People like Kayode Farinto, Eniola Ipariola (Anyman), Mukaila Abdullaziz.

Despite the treatment meted out to them, they still remain in the association,

I salute their sacrifice.

” I must not fail to mention the role of John Oforbike for being strong and steadfast in his love and commitment to ANLCA

” I will also like to recognize an independent mind, a strong but highly underrated individual in the person of Obiora Elochukwu, the present of Chairman of the Association Electorial Commission(ASECO).

” He surprised and exceeded the expectations of everyone in his handling of the chapter elections.

” He should be allowed to conclude the Apapa chapter elections.”

” My greatest and highest recognition goes to Prince Wale Cole, the elected chairman of the Tin Can Island chapter.

” I hereby relinquishes my title” the Governor ” and given it to Prince Wale Cole.

” Henceforth, he is to be known and referred to as the ” Governor” of Tin Can Island chapter of ANLCA.

” He is the new Sheriff in town.

On the conduct of the chapter elections and his expectations, Prince Ozo Chukwura said;

” Am appealing to the Board of Trustees (BOT) and all ANLCA members to allow and support Obiora Elochukwu ( ASECO Chairman) to finish his work.

“Because further crisis in ANLCA will never help anybody. But, most sincerely, I will also congratulate my big brothers, Chief Henry Njoku and Sir Ernest Elochukwu, while appealing to them to put their differences aside , so that ANLCA will rise more than it is now. Congratulations to all those who love ANLCA.”

On why he has decided to congratulate all this people and the conduct of the election having being a leader from the other faction, he said,

” From the time of Kamba, we have been having divided interests, even in your family, but that doesn’t remove you from the family.

“Interest will never die, but human beings will come and go. Some names are no more heard in ANLCA today, but those who are in the association today will fight to make same ANLCA remain one”.

Ozo also spoke on why he decided to hand over his title as ” Governor ” of Tin Can after over 20 years since he left office in 1999 and his expectations from Wale Cole as the new ” Governor” of Tin Can Chapter.

” I won the first election at Tin Can Island Chapter in 1999, people came together and gave me the title the “Governor of Tin Can”.

“I did not give it to myself , they gave it to me as a nickname, they felt then that I have the capacity to govern that big port of Tin Can.

“When Tin Can, Brawal, SCOA, SIFAX , PTML, all of them were under Tin Can”.

Why he decided to hand over the title to Wale Cole, after many Chairmen have come and gone- Ozo Chukwura said:

“They all came in their own different ways and styles. Dr Kayode Farinto came, a highly educated individual in ANLCA.

“Oyinola came with his own style, but this young man , Wale Cole , came like a Tsunami, that nobody could resist.

“Wale Cole came with a Tsunami that nobody could win him in Tin Can.

” That was how Prince Ozo Chukwura came in 1998, won the election with Tsunami, which I relinquished it to Olatunde, who later supported me to win again in 1999.

” It was the way and manner I collected the key to Tin Can that Prince Taiye Oyeniyi was holding and Oye supported me, that is when they gave me the title ” Governor of Tin Can”.

” Now that Wale Cole came with too much strength, he did not collect the key from me , because am no longer in office, he bulldozed his way and won the chapter election at Tin Can, he is now the new “Governor ” of Tin Can Island Chapter of ANLCA.

On his expectations from Wale Cole, haven’t regarded him as his political godson, Ozo declared

” He should always maintain peace and unity in ANLCA, not to see himself as a tin god , but to be humble.

“So long God has given me a second chance to be alive , I will continue to advice him. I have absolute confidence in him.”

Finally, Ozo Chukwura message to stakeholders to support Wale Cole and ANLCA to succeed, he said

” Many things happens in government. The way it is now is not they way it was then. I will advise him to work , more especially collaboration with NAGAFF people and give due respect to all the executives of NAGAFF, while I will beg them to reciprocate.

” Though, no organize competition, but there are individuals interests ” Prince Ozo Chukwurah concluded.

The ANLCA has been embroiled in an intractable crisis for over five years which the present NECOM inherited.

The crises rocked the association to its very foundation and threatened its existence.

But the recent happenings invite association suggest that peace and sanity is gradually creeping into the association being touted as the oldest and largest freight forwarders association in the country.

Freight Monitor

Freight forwarding business under threat as Customs Agents lament high cost of goods clearance at ports

— We are diversifying into other businesses to stay afloat– ANLCA Chieftain cries out.

Funso OLOJO

This is not the best of times for freight forwarders who ply their trade at the Nigerian ports.

This is because their cherished trade is under threat due to the astronomical increase in the cost of clearance of goods at the ports.

Due to the plethoral of charges slammed on importers/ Shippers at the Port, most of them could not afford to bring in as many containers as before while others have outrightly stopped the importation business.

This development, our reporter gathered, has therefore put the freight forwarding business on the brink of collapse due to lack of patronage.

According to the cost analysis of cargo clearance procedures at the Port, an average importer, using the Nigerian ports, pays more than six different exorbitant charges apart from customs duties.

For instance, before an importer could exit his goods from the ports, he pays the following charges.

a. N500,000 NAFDA Certification

b. N500,000 SON Certification

c.45 per cent( up from 30 per cent) terminal operators and shipping companies service fees/ charges

d. N 150,000 to N200,000 NESREA/ other Environmental Agencies charges

e. N45,000 per day demurrage on 20- footer container

f.N68,500 per day demurrage on 40- footer container

g.20 million Customs duty on 20- footer container

h.26 million Customs duty on 40- footer container.

In addition to these charges, the Nigerian Ports Authority (NPA) has recently increased its tariff by 15 percent.

It could also be recalled that the Nigeria Customs Service only recently put on hold the 4 per cent Free on Board (FOB) charge on imports due to the outcry of freight forwarders .

However, the FOB charge would eventually be reinstated later after sufficient consultations and sensitization are carried out by the customs.

Alhaji Mukaila Abdullaziz, the former Sole Administrator of the Association of Nigerian Licensed Customs Agents(ANLCA) said the listed bills are more than that.

“What you have just listed was an average cost, they are more than that” he declared with a hint of bitterness in his voice, when asked to confirm the cost analysis as the foremost freight forwarder in the industry.

” The Customs’ Federal Operations Unit(FOU) is still there.

“Their officers will lay siege on the road for a container that have already paid the exorbitant fees you have mentioned.

“They too will slam their panthom charges on the already exited container and if you don’t pay, they will impound it and take it to their office” the ANLCA Chieftain declared.

When asked how freight forwarders break even in the face of these multiple charges, Abdullaziz retorted;

” We are not breaking even .No agent is breaking even except the dare- devil ones who are ready to do anything to break even.

“But for some of us who are old hands on the job and have names to protect, we are not breaking even because we are not ready to compromise the system”

“That is why most of us have diversified into other businesses to stay afloat”.

“The freight forwarding industry is dead” he said with a hint of regret in his emotion – laden voice.

Our reporter could confirm that most of the old hands in the freight forwarding business have diversified into hospitality business as they are owners of choice hotels spread across Lagos and other commercial cities in Nigeria.