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NSC flays attempt to truncate CTN implementation

By BusinessNews Staff on November 22, 2015

The Nigerian Shippers Council (NSC) has flayed the attempts to truncate the implementation of International Cargo Tracking Note (ICTN) in the country.
CTN was earlier introduced in the country and its execution was spearheaded by the Nigerian Ports Authority (NPA). It was, however, abandoned by the federal government for reasons not made to the public.

NSC, which is presently saddled with the responsibility of seeing to the successful implementation of the re-introduction of CTN in the country, said there was no iota of truth in the claims made by those opposed to the exercise.

The council, which has Mr. Hassan Bello as the Executive Secretary and Chief Executive Officer (CEO), flayed shipping line agencies in the country for allegedly distorting facts about CTN implementation.

It maintained that ICTN is at no cost to the shippers, but that the inherent costs are to be borne by‎ the international shipping lines and carriers.
It accused the international shipping lines and their agents in the country, the Shipping Association of Nigeria (SAN), of creating disaffection among the organised private sector in Nigeria by promoting falsehood that ICTN will add to the cost of business.

While explaining the cost element of the CTN, NSC Director of Commercial Shipping Services, Mrs. Dabney Shall-Holma said that the CTN cost does not come with additional cost to importers or exporters.

Shall-Holma explained that contrary to the falsehood that is being spread by agents of shipping lines in the country, the administrative cost is expected to be paid by the shipping lines, who according to her, are already charging Nigerians for it.

She disclosed that for many years, the shipping lines have been hiding such cost on the final bills given to Nigeria importers to pay.

“It comes out of payments that are already collected or payable per consignment. Whether the Shippers Council introduces cargo tracking note or not, shipping companies will continue to collect this taxation, the $25 per container and all the other listings are expected to come from the already existing freight taxation collected by the shipping lines on Nigerian freight. The shipping lines and agents are trying to fight off the implementation of CTN because they are aware that it will address wastages in the system and create choices for the shipper,” she said.

Shall-Holma explained that the charges released in the document published by the shippers council recently was meant to guide shipping lines and agencies in the preparation of their documents.

Continuing, she said: “They are trying to truncate the ICTN because they are the same shipping companies dealing with all the 18 countries in West and Central Africa implementing cargo tracking note, and in those countries they pay 65Euro per TEU, the lowest cost is 35Euros. But here we are charging $25 per TEU, which is less than a quarter of the 65Euros charged by other countries, but they are not worried about that because they know that Nigeria controls 75 percent of the cargoes.

“The issue of transparency is what is causing the problems here, they do not want you to know how much they are charging you‎ per unit, but we are insisting. They know that once Nigerian trade is made transparent they are in trouble because there too many padded costs and add-ons that are not made obvious. The CTN in Nigeria is different from those being implemented in West and Central Africa, ours is Advance Cargo Declaration that gives you a column where you must put the Bunker Adjustment Factor (BAF), Currency Adjustment Factor (CAF), you must tell us what the surcharge is – whether it is General Rate Increase (GRI) which shipping companies do from time to time and they hide it, when you go for a shipping invoice they will give you a lump sum. It does not tell you what the GRI or what the basic freight is. They pad it on because they are not giving you the information, the Shippers Council is just trying to identify what the charges are”.

According to her, henceforth shipping lines must break down the charges they are collecting from importers.

“If you are charging us for piracy, let us know if you are charging us for any deficiency in the port let us know by writing it down, so that the federal government can take remedial actions. CTN implementation will be too revealing, and this is why shipping lines are trying to play on the psyche of the readers of the documents issued by the council,” she said.

She revealed that they have already been informed that the CTN would come from the freight surcharges.

“They are aware but they are resisting it. They will not resist it to the Nigerian Shippers Council because we know where they are padding on, but they will say it to the Nigerian public and the organised private sector, so that they can create anxiety in the industry and generate the conflicts we are getting because people are already writing and calling”, she said.
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Shall-Holma encouraged Nigerians, especially the Manufacturers Association of Nigeria (MAN) and other relevant stakeholders not to be deceived or be used by the antics of the shipping lines.

According the NSC Director, they should not be afraid of cargo tracking note because it is extremely rigid and controlled so that maritime fraud will no longer be possible.CTN can now block leakages and wastages. The multinationals know what they are doing. Players in the industry know what they are doing and some of them are very smart at what they do.

[ThisDay]

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