Agents kick over 100% increase in cargo handling charges

There is uneasy calm in the cargo handling sub-sector of the aviation industry following the 100 per cent hike in handling charges by the two handling companies, the Nigerian Aviation Handling Company (NAHCO) and Skyway Aviation Handling Company (SAHCO).

The Association of Nigerian Licensed Customs Agents (ANLCA), the umbrella body of agents at the Murtala Muhammed International Airport, Ikeja, has rejected the increase, describing it as ill-timed and insensitive.

This was just as the agents withdrew from work over the weekend in protest against the action of the handling firms.

Daily Trust reports that the two handling companies commenced the new cargo handling regime with 100 per cent increase on April 24, 2023.

It was learnt that the ground handlers earlier sent a circular to the executive of ANLCA introducing an upward review of 300 per cent on handling and other charges before it was negotiated to 100 per cent.

Following the increase, general cargo/bank consignment charges per kilogramme rose from N63.30 to N130.6, the demurrage charge per kilogramme was increased from N13 to N26 while re-registration was pegged at N15,000 from N4,420 among others.

Speaking with newsmen at the airport over the weekend, the Vice Chairman of ANLCA MMIA, Davies Ben Chukwunenye, said the new increase would compound the suffering of the masses.

Daily Trust reports that the increase may add to the cost of goods as the agents may transfer it to clients who have one item or the other to clear at the airport.

Davies insisted that the 100 per cent increase was ill-timed, saying the last increment was less than three years ago.

The ANLCA vice chairman said the intervention of their executives led to the downward review of 100 per cent which he said was against trade policy all over the world to have a 100 percent increment.

Davies explained that the previous increase sent many agents out of business as they could not cope with the situation, lamenting that this will further add to the plights of agents.

He said the handling companies justified their action by saying there was galloping inflation in the country.

Davies further revealed that ANLCA members bore the brunt of customers’ damaged cargoes especially those affected by water as a result of the water-logged cargo shed of NAHCO.

He called on the government to come to their rescue and save the suffering masses, saying the association has written to the Nigerian Civil Aviation Authority (NCAA) to intervene as the industry’s regulator but there was no response yet from the regulator.

NAHCO, SAHCO defend rate hike

In a letter from the two ground handlers to the agents dated 27th April 2023, they declared that the final rates adjustment was effected in line with aviation standard as all relevant stakeholders recognised by law, including government agencies and the regulator were duly consulted.

The two companies said they have done due diligence and followed the laid down procedures in arriving at the increment, adding that SAHCO and NAHCO will no longer be liable for any loss/demurrage from the no-work action staged by some ANLCA members.

The letter, signed by Saheed Lasisi and Boma Ukwunna of NAHCO and SAHCO respectively on behalf of their managements, reads, “We have also complied with the relevant provisions of the International Civil Aviation Organization (ICAO)’s four main principles on increase in charges for airport and air navigation service providers as contained in ICAO Doc 9082, which are: cost recovery; transparency; consultation with users and non-discrimination.

“It is on record that the ground handlers have held several meetings with all critical stakeholders and various associations of freight forwarders and brokers in the industry.

“During the engagements and numerous conversations held with the stakeholders, it was collectively agreed that there is a need to ensure compensation for services rendered as a way of cost recovery for operations and as such must enhance safety, efficiency, and security of our collective operations and the airport environment.

“Consequently, it was suggested that the ground handlers should amongst other things come up with competitive rates that, to a large extent, match up with the integral cost of operations and that are commensurate with what obtains in other West African countries. This was intensively considered by all parties”

The companies explained that several meetings were held between them and agents on a shift in the commencement dates of implementing the said agreement which they acceded to despite the huge cost involved in having to adjust and readjust operating systems which occurred over three or four times.

“We consciously align in the spirit of progressive partnership, engagements, consultations and collaborations.