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NPA to sanction APM Terminals for ‘flouting directive’ on demurrage fees

The Nigerian Ports Authority (NPA) says it will sanction APM Terminals Nigeria Limited for issuing charges to port users despite the waiver granted by the federal government.

In March, NPA had directed terminal operators to suspend all applicable terminal storage fees, known as demurrage, on consignments for port users due to the impact of coronavirus on businesses.

However, in a letter addressed to APM Terminals, Ugo Madubuike, general manager, monitoring and regulatory services of NPA, said the port authority had received several complaints (with documents attached) from freight-forwarding groups alleging the flouting the directive.

“You will recall that following the outbreak of the COVID – 19 pandemic, the Nigerian Ports Authority issued directives vide letters HQ/GUI/MRS/OP/L.1/vol.11/339, HQ/GM/IRS/OP/L.1/vol.11/372 and HQ/GM/MRS/OP/L.1/vol.11/379 dated 2nd, 8th and 15th April, 2020 respectively for the suspension of rental charges on consignments from 23rd March, 2020 for an initial 21days and from 13th April, 2020 for an additional 14 days,” the letter read.

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“This was done in recognition of the challenges being experienced by consignees in clearing their goods due to the various levels of movement restrictions imposed by the federal and state governments.

“You will also recall that to relieve you of the associated loss of revenue from the implementation of these directives, the authority undertook to refund you the waivers granted to consignees during this period, through the issuance of credit notes for the amount waived, in line with the approved and published rates.

“We have however received various complaints from freight-forwarding groups attaching documentation alleging the flouting of these directives by your terminal.”

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The port authority added that if the allegations are found to be true, it “will not hesitate to apply appropriate sanctions”.

It gave APM Terminals until May 5, 2020 to respond to the allegations.

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