By Innocent Orok
A frontline maritime consultant and Customs Broker who is also a former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, has decried the arbitrary charges imposed by Cargo Consolidators ( Groupage Goods) handlers to exploit importers and Agents in Nigeria.
Farinto said the latest trend deployed by the Cargo Consolidators has been going on without any approval , even as they claimed the Nigerian Shippers’ Council (NSC) is aware of the latest charges.
Addressing journalists in Lagos on Wednesday, Farinto highlighted the exploitative practices of the Cargo consolidators, particularly Associated Port and Marine Development Company (APMDC), and their adverse impact on the industry.
He explained that cargo consolidation, commonly referred to as groupage goods , involves combining goods from multiple consignees into one container. While the practice is essential for cost-effective shipping, he noted that some consolidators impose exorbitant and unregulated charges on cargo owners, which he described as extortionate and detrimental to the Nigerian economy.
Using a consignment of an elevator meant for a church project as a case study, Farinto detailed his experience with APMDC. The elevator, occupying 10.6 cubic meters (CBM) in a 20-foot container, incurred consolidation charges amounting to ₦3,117,368. He explained that APMDC charged ₦270,172 per CBM for consolidation, along with additional documentation and VAT charges. Further, the company issued a separate debit note of ₦438,223 for terminal-related fees, bringing the total charges for the consignment to over ₦3.5 million according to documents sighted by our correspondent
Farinto lamented “These charges are outrageous. For a 20-foot container, even in a standard terminal, you cannot pay more than ₦1 million for all charges, including terminal fees and shipping costs”.
He further criticized the lack of transparency in determining these charges, stating that there should be a standard operating procedure in line with the concession agreement. “Where do these consolidators get their charges from? Who regulates them? The Nigerian Shippers’ Council ( NSC) is aware of these exploitative practices, yet no concrete action has been taken,” he added.
He also cited a similar case involving Sharafa Shipping, where the company charged ₦165,220 per CBM for a consolidated consignment, along with separate terminal charges. He emphasized that these arbitrary charges inflate the overhead costs of imports, which are ultimately passed on to Nigerian consumers.
The ANLCA chieftain who is also the CEO of Wealthy Honey Investment Limited called on the Nigerian Shippers’ Council, as the economic regulator, to protect Nigerian shippers by addressing the issue of arbitrary charges. He demanded sanctions against APMDC for alleged exploitation of shippers and failing to communicate effectively with clients during a prolonged closure of its terminal by the Nigerian Customs Service over alleged infractions.
Shedding more light into the issue, Farinto explained that “when the consignment was allocated to the terminal, we learnt that the terminal was closed down by the Nigeria Customs Service over an infraction. We wrote to them , after sometime, they move the container to Bollore terminal. The closure of the terminal affected numerous cargoes, including the elevator meant for a church project, which could not be installed on time due to the delay. Yet, APMDC did not apologise or offer explanations to its clients. Instead, they continued to impose illegal charges,” Farinto lamented.
Dr Farinto also warned shippers and importers to be cautious when engaging cargo consolidators, urging them to verify the credibility of terminal operators and shipping companies.
He further highlighted the importance of addressing these issues to ensure the success of the African Continental Free Trade Agreement (AfCFTA), where the role of Cargo consolidators will be critical.
Farinto concluded by urging the Ministry of Marine and Blue Economy and the Nigerian Shippers’ Council ( NCS) to intervene and prevent these exploitative practices from becoming a systemic menace in Nigeria’s maritime sector.
“We must act now to protect importers and ensure that cargo consolidation serves its intended purpose of reducing costs rather than becoming a tool for exploitation,” he stated.
