Freight Forwarders Beg FG to Waive Demurrage Charges

March 27, 2020
nigerian Freight Forwarders

By Adedapo Adesanya

Due to the current outbreak of COVID-19, the National Association of Government Approved Freight Forwarders (NAGAFF), on Friday urged the federal government to declare a 21-day force majeure to ensure waiver on charges in the seaports.

The force majeure grants the removal of liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations, in this case the coronavirus.

This call was made by the association in a statement signed by its Secretary General of NAGAFF, Mr Dipo Olayoku, in Lagos on Friday.

“In times of emergency like this, the interest of freight forwarders should be strictly protected.

“This is why we want government to make a categorical statement that will allay the fears of freight forwarders, that they will not bear the brunt of the likely effect of delay in cargo clearance which is bound to occur in this time of national emergency.

“The transport ministry should declare a ‘force majeure’ for at least 21 days during which demurrages will be waived,” he said.

Mr Olayoku urged the federal government and the Nigeria Shippers’ Council to ensure that shipping lines and terminal operators not exploit freight forwarders through arbitrary charges and demurrage.

Mr Olayoku then also used the opportunity to advise freight forwarders to observe all the precautionary measures announced by the government and agencies tackling the COVID–19 and curtail its spread.

“Freight forwarders are reminded of their strategic position in international trade and revenue generation for the government which forbids them from shutting down completely.

“However, at the same time, their health safety should be paramount if they must continue to function effectively and efficiently even after the scourge must have gone.

“For this reason, the NAGAFF management is urging freight forwarders to, apart from observing all the safety measures mentioned above, endeavour to be indoors and transact their freight forwarding businesses online, where possible.

“They should come out only when it is absolutely necessary to transact their businesses at the ports,” he said.

He then added that in light of current events,  shipping companies, terminal operators, and government agencies involved in port activities should upgrade their systems such that interactions with them could be done online to reduce human contacts in their operations.

He added that in fulfillment of its obligations to freight forwarders and observing social distancing policy of government, NAGAFF’s national headquarters would remain open, but with only few workers.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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