Businesses, including manufacturers, importers and exporters that do business in Onne and Rivers Ports, both in Rivers State, would be compelled to pay huge sums as demurrage and storage charges to shipping companies and terminal operators for not taking delivery of their consignments as and when due.
This is due to the shutting down of port operations in the state following the imposition of a total lockdown of Rivers State last week Thursday as well as the arrest of port workers by the state COVID-19 taskforce on the orders of the state government.
BusinessDay findings show that contrary to the Federal Government’s directive that ports should remain open for business during lockdown to aid the movement of essential supplies, the Rivers state government has refused to place port workers under essential services that allowed to operate during lockdown.
Tony Anakebe, a port analyst, who frowned at the closure of ports in Rivers, stated that the development would further put pressure on the terminal yard occupancy rate that has been battling with congestion since the mid-2019, due to existence of long-standing goods at ports.
Anakebe noted that now is no time to put port business on hold, saying that the situation would impose serious cost on importers, who would lose millions of naira to high cost of doing business associated with payment of demurrage and storage charges to shipping companies and terminal operators.
Confirming this, Daniel Kalu, managing director of Africa Atlantic International Agencies, told TheCable that the vessel transporting his consignment of 4,500 metric tons of frozen mackerel fish worth millions of euros have been unable to berth at the Rivers Port for close to two weeks, a situation which he said could make his company lose the entire consignment.
According to him, the delay in berthing the vessel with such perishable food items, would pile up demurrage that the company must pay to shipping company for not taking delivery of the consignment, adding that businesses pay demurrage of about USD7,800 per day.
He further expressed worry that the fish would lose quality and standard if later discharged.
It should be recalled that the Maritime Workers Union of Nigeria (MWUN) had, early at the weekend, issued a 48-hour ultimatum, which started from Monday May 11 to Governor Nyesom Wike of Rivers State, demanding the release of the 20 dockworkers that were arrested by the government or, risk the union withdrawing all of its members from Nigerian ports in a nationwide strike.
The 20 dockworkers were arrested for allegedly violating the lockdown directive in Rivers State alongside the union’s bus that was impounded by the government.
Adewale Adeyanju, president general of MWUN, said in a statement that dockworkers as providers of essential services to the nation must be given unfettered access to the ports.
He argued that the withdrawal of service by the union would have a lasting impact on the nation’s economy as all ports, jetties and oil platforms would be shut down completely.
“The affected dockworkers were returning from essential service operations to BUA/PTOL terminal in Port Harcourt and were forcefully arrested, and detained by Rivers State Taskforce enforcing COVID-19 lockdown,” Adeyanju stated.
According to him, “all explanations made by our members including presenting duly signed ‘Essential Duty Port Pass’ issued by the Nigerian Port Authority (NPA) to the taskforce team, were ignored.
“Consequently, shipping companies, terminal operators and port users in Port Harcourt Port have closed down their operations till further notice, leading to loss of jobs by dockworkers. If the ports are not operational, it will definitely affect operations of oil platforms and other maritime related operations and consequently induce job losses,” he added.
