Why Nigerian importers will pay more for cargoes from US, Canada

• A French shipping, CMA CGM, has announced a new Peak Season Surcharge on cargoes coming from the US and Canada to Nigeria
• The company slammed a $400 surcharge on containers carrying goods to African countries, including Nigeria
• The development comes amid the removal of import duties and VAT from imported food items by the Nigerian government

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

CMA CGM, a French liner, has announced a new Peak Season Surcharge (PSS) of $400 per container effective August 5, 2024, on cargoes originating from the US and Canada and destined for African countries, including Nigeria, Ghana, Cameroon, Togo, Benin, Angola, Gabon, Sierra Leone, Congo, DRC, Namibia, and Equatorial Guinea.

The surcharge comes barely two months after the shipping firm imposed $900 per twenty equivalent units (TEU) of containers as PSS on cargoes from China to Nigeria.

French shipping company imposes new charges on cargoes coming to Nigeria Credit: Karl Hendon
Source: Getty Images

The surcharge applies to other routes

The company also announced the implementation of a separate surcharge of 400 euros on cargo originating from North Europe, 300 pounds per container from the US, and $400 per container from the West Mediterranean, East Mediterranean, Adriatic, Morocco, North Africa, and the Black Sea destined to Western and other African countries.

According to reports, the surcharge is applicable to dry and reefer cargo.

The French firm also applied a surcharge of $200 per 20ft container on shipments from all Middle East, Gulf, and Pakistan ports to South Africa from July 20, 2024.

The company said the surcharge will apply until reviewed.

Nigeria removes duties on food imports

The development follows the Nigerian government's removal of taxes, duties, and levies on imported food items.

The government said the move would crash the cost of staple food items such as rice, maize, and wheat.

Customs announces new FX rate to clear goods

Legit.ng earlier reported that the Nigeria Customs Service (NCS) exchange rate for import duties has continued to rise, hitting N1,549 per dollar.

Analysts have said that the continued increase in Customs FX rates in July comes amid a stable exchange rate in June, which recorded fewer adjustments.

Last month, there were about five increases in Customs duty rates. However, in July, the Central Bank of Nigeria (CBN) adjusted the exchange rates for cargo clearance seven times.

Source: Legit.ng