Shippers’ Council Orders Shipping Lines To Suspend New Tariffs

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The Nigerian Shippers’ Council (NSC) has directed shipping lines operating on Nigeria’s waterways to suspend the implementation of a new tariff regime by them with a view to ensuring cost-friendly operations in the nation’s maritime industry.

The NSC’ Head of Public Relations, Rebecca Adamu, in a statement on the tariff directive, indicated that the Council ordered the shipping lines, shipping agents and terminals to suspend and refrain from implementing any review or upward adjustment of charges until full engagement with stakeholders.

She maintained that the earlier directive by the Council to the operators was in accordance with the Council’s statutory mandate as an economic regulator, adding that tariff reviews are carried out in a transparent, structured and well defined regulatory process.

The NCS’ spokesperson clarified that the processes of the approval included detailed technical and consultative engagement with affected service providers, in a bid to examine the cost drivers, operational realities, investment obligations, and regulatory compliance.

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However, the Council stressed the engagements did not constitute automatic approvals, observing, however, that these informed a broader evaluative process.

The statement reads: “Final determinations were reached only after rigorous internal, technical, and financial assessments guided by empirical evidence, regulatory benchmarks, and prevailing economic conditions.

“Notwithstanding, shipping companies, agents, and terminal operators are hereby directed to suspend any intended review of charges until they have duly consulted and engaged their stakeholders. As the Port Economic Regulator, the Nigerian Shippers’ Council will wield the big stick against any port service providers disrupting port operations.

“The Council emphasised that transparency, fairness, and stakeholder participation are fundamental principles underpinning port economic regulation in Nigeria”, Adamu added.

She quoted the Executive Secretary of the Council, Dr. Pius Akutah, as warning that as the ports economic regulator, the Council has the power to apply appropriate sanctions, including enforcement measures covered under relevant regulatory frameworks, against defaulting operators.

The Executive Secretary encouraged constructive engagement, dialogue, and compliance, adding that any service provider that proceeds with charge reviews without stakeholders’ engagement should be prepared to face decisive regulatory action.

Akutah restated the Council’s commitment to protecting the interests of port users, promoting fair competition, and ensuring a balanced and predictable business environment within the Nigerian maritime industry.

The decision to suspend the implementation of the tariff regime is not unconnected with recent protests by freight forwarders of the shipping companies.

The freight forwarders, including members of the Association of Nigerian Licensed Customs Agents (ANLCA) had on Monday staged a protest at the premises of one of the affected shipping lines, MSC, to express their opposition to the tariff hike.

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