Two shipping lines operating in Nigeria have introduced a new surcharge called ‘Peak Season Surcharge’ (PSS) on all cargoes originating from anywhere in the world to Tin-Can, Apapa ports in Lagos and Onne Port in Rivers State.
The surcharge, announced by both Hapag-Lloyd and CMA CGM via electronic mails last week, has automatically increased the freight rate payable by any Nigerian importer bringing his or her consignment using the above mentioned shipping lines.
Hapag-Lloyd, a German-based firm, the fifth largest shipping company in the world, in a memo seen by BusinessDay, stated that 20-foot and 40-foot containers from China, Taiwan, Hong Kong, and Macau would pay $700 PSS each.
It also said containers from the US and US territories would pay $700 each from March 15, and those coming from the rest of the world like Europe would pay €610 on the consignment.
According to the company, the review will enable it maintain a continued high level of service. The growing demand leads to lack of space on vessels and increasing costs for supplying sufficient equipment. Carriers can implement this surcharge any time and at any level until further notice.
It said in practice, PSS functions like the General Rate Increase (GRI). It is usually announced as an additional fee on top of the base rate, although it may be cancelled or mitigated at a lower rate.
Hapag-Lloyd said the PSS would become effective from March 1, 2019, until further notice for all origins (excluding USA). It added that consignments from the US would also pay PSS from March 15, 2019, until further notice.
Meanwhile, the leading shipping firm, Maersk also introduced PSS taking effect from February 15. “Maersk is introducing the PSS for all cargo from Pakistan to West Africa countries (excluding Tin-Can Island Port, Apapa, and Onne) with effective from 15th February 2019.”
Recall that Hapag-Lloyd had in November last year introduced PSS for all container types to Nigeria at the rate of $505 and $450 each.
It has a fleet of 222 modern container ships and a total transport capacity of 1.6 million TEUs (Twenty Foot Equivalent Unit).
Also, CMA CGM stated in a memo dated February 22, 2019, that its new surcharge applies to cargoes destined for Tin-Can, Apapa and Onne ports.
According to the shipping line, effective March 7, 2019, the new rates of a uniform PSS of $750 will be imposed on all categories of consignments including dry, break bulk and reefer cargoes.
It stated that cargoes originating from China, South Korea, Taiwan, Japan, Southeast Asia and Bangladesh including Middle East Gulf as well as North and South America would be affected.
