ANCLA remains indignant over 100% increment in cargo handling rates

ANCLA remains indignant over 100% increment in cargo handling rates

…Calls on NCAA to intervene 

The Association of Nigerian Licensed Customs Agents (ANLCA), Murtala Muhammed International Airport, Lagos, has expressed its indignation over the recent 100 per cent  increase in cargo handling rates by the Skyway Aviation Handling Company (SAHCO) and the Nigerian Aviation Handling Company (NAHCO).

Recall that the two handling companies had, on the 24th of April, 2023, increased their handling rates by 100 per cent, citing high inflation rates in the country.

This, however, did not go down well with ANLCA members who decided to down tools for over four days in protest of the increase. 

The increment showed that general cargo /bank consignment charges per kilogram rose from N63. 30 to N130. 6, the demurrage charge per kilogram also went up from N13 to N26 while re-registration was pegged at N15, 000 from N4, 420 among others. 

Addressing journalists over their plights, the Vice Chairman of ANLCA MMIA, Davies Ben Chukwunenye, who spoke on behalf of all agents across the country, condemned the actions of the handling companies describing it as insensitive and an attempt to add to the sufferings of the masses.

Davies explained that in the second week of February 2023, the ground handlers sent a circular to the executives of ANLCA, introducing an upward review of 300 per cent on their handling and other charges.

According to Davies, the increment was highly insensitive, considering the current harsh economic situation in the country.

He said all attempts to make the handlers understand that it was ill timed to effect an increase were not considered, adding that the last increment was less than three years.

The ANLCA Vice Chairman said the intervention of their executives led to a downward review of charges from 300 to 100 per cent, which he said was still against trade disputes all over the world to have a100 percent increment.

Davies explained that the previous increment has 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 informed them that there was galloping inflation in the country, which triggered the increase in handling rates.

He, however, argued that the poor facilities provided by the management of NAHCO do not commensurate with the charges being paid by ANLCA members.

Davies further revealed that ANLCA members bear 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 that the Association has written to the Nigerian Civil Aviation Authority to intervene as the industry’s regulator but no response from the regulator. 

Insider findings, however, reveal that the increment was justifiable as the handling companies consulted the Nigerian Civil Aviation Authority (NCAA) and other stakeholders before effecting the new rates.

In a letter dated 27th April 2023, and signed by Boma Ukwunna and Saheed Lasisi of SAHCO and NAHCO respectively, the handling companies said they had complied with the relevant provisions of the International Civil Aviation Organization’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.

They explained further: “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 agreed that there were meetings 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 aligned in the spirit of progressive partnership, engagements, consultations, and collaborations.

On the 17th of April 2023 we had a meeting with all the relevant stakeholders, consequent upon which an agreement was jointly executed on the 19th of April 2023 where it was collectively agreed that the ultimate effective date for the implementation of the 100% increase is Monday 24th of April 2023.

“We were therefore shocked and taken aback that having achieved the above mileage based on thorough justifications regarding the current economic realities, your members still went ahead, staging a protest for a matter that has already been concluded/resolved,” they added.

With this ground-shifting letter, the two handling companies insist that 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.

Tersoo Agber

Journalist, Travel enthusiast, PR consultant, Content manager/editor, Online publisher.