FREIGHT FORWARDERS MUST UNITE FOR COLLECTIVE BENEFITS
— HIGH CHIEF VALENTINE U. ORAGWA
Recently, The Prestige Blended Magazine engaged the MD/CEO of CEE TOP GLOBAL SERVICES LIMITED, High Chief Valentine Uchechukwu Oragwa, in an exclusive interview in his Lagos Office, the Business man had a robust time to dissect some issues around unionism and leadership,
under declaration, abuse of professional charges by freight forwarders, extortion, and the need for stakeholders collaboration.
Enjoy the excerpt!
QUS: How can you describe the level of collaboration amongst freight forwarders, can you make bold to say that you have a strong union ?
There is no collaboration whatsoever, everybody is minding his business. We have associations but do not have strong and principled leaders, what we have are individuals who compromise their integrity at any given opportunity, and that is why government keeps churning out unfriendly trade policies knowing full well that we lack leadership. We don’t have a strong voice.
However, most of our predicaments are caused by us. Government has laid down trade policies, though these policies summersault from time to time, they are never stable due to the instability of the Naira and continued appreciation of the dollar.
For example, there is a bench mark for duty payment and rather than comply with Customs benchmark and take delivery without stress, you see somebody making under declaration and paying lesser in order to gain more, and when he is delayed and asked to go and pay the correct duty, that same person will begin to blame Customs.
What l see in the industry is survival of the fittest, some importers want where they would get it cheaper and that is why some of them lose their money to fraudulent agents. If you charge a job 5Million Naira which ordinarily should be the right amount to clear the consignment, another agent will go to the same man and tell him to bring 3Million, and sometimes that person that collected 3M would deliver the consignment by cutting corners and circumventing trade rules aided by those in authority, and if you go back to the importer tomorrow he tells you that he has someone that charges lesser. These are some of the challenges we are facing as freight forwarders. There is no uniformity in price. Those who have the connection to manipulate the system charge lesser and some deliver to the amazement of that person that charged the normal price for that same consignment.
I would want to advise freight forwarders to always charge correctly and make the right declaration, it will not only make your job easy it will as well give you peace of mind.
Customs are doing their jobs, the problem we are having is mainly from the agents who either undercharge or make wrong declaration.
Qus: Are you saying that agents are not supposed to protest against unfriendly trade policies?
I can never be part of such protest. Why should l protest against a policy that some of my professional colleagues are benefiting from and are ready to do everything to make sure nothing comes out of the protest. As you are protesting, shipping companies and terminal operators are counting demurrage for you which you must pay because nobody can stop them from collecting that demurrage from you. We don’t have leaders, nobody to speak on our behalf. What we have are people who are after their pockets, people who keep betraying us by selling out at every slightest opportunity. We had strong leaders that stood up to protect our collective interests back in the days, not this time around, everybody is on his own. Nobody speaks for anybody.
If you go on strike or protestation, you will end up paying the demurrage. Our union is not working, even after protesting because of high tariff, leaders of some of the associations will go to shipping companies and terminal operators and collect money from them and abandon the agents. If we have strong union, these things won’t be happening.
QUS: Overtime, Foreigners bring in consignments and are allowed access to the ports to also take delivery of the consignments themselves, what is your take on that ?
Nigerians love money more than their citizens. Once they see a foreigner they break all protocols. Go to our neighbouring countries, you observe that foreigners are not allowed access to their Ports, you only engage indigenous agents to clear your goods. Chinese and other nationalities. bring in consignments to our ports and are given free access to the ports to clear the goods which they will never allow to happen in their countries. There should be certain restrictions put in place to checkmate this . In this country, foreigners are given more concessions than citizens. It is very unfair.
QUS: What is the major challenge freight forwarders are facing presently?
Today, the major challenge we are facing is the Maritime Police, how can the Police block and hold back your container and demand as high as N200,000.00 to allow you take delivery of a consignment they do not even know what the content and value are. Why must the Police keep harassing, intimidating and extorting freight forwarders and importers, they are not Customs, and blocking people’s bill of laden and asking for as a high as N200,000 to unblock it is the height of recklessness. And freight forwarders are not standing boldly to speak against it because some people somewhere are gaining from the anomaly. Do they know much about documentation. After Customs has released a container, the maritime police will still block it, demanding huge sum of money. Even if you want to follow the right process they will drag it that you will go through very long protocols for you to lose good money. They are not ready to listen to you if you don’t dance to their own tune. Something that can be done within a day or two can be dragged for over a month and in the end, you will pay demurrage to shipping company and terminal operator.
Qus: How would you rate the ETO call up system, has it been helpful to port users ?
Yes, they are using it to regulate the trucks but we are experiencing so much delay in the process. l can boldly commend the Nigeria Ports Authority (NPA)for the noble initiative, it has really been helpful, though the ETO call up system was not really been very instrumental for the dismantling of the monstrous gridlock we experienced for many years on port access road, of which we have remained very appreciative of the team that made it possible. The ETO system at a time became an avenue through which a cabal used to extort money from freight forwarders, at a time truck owners were giving kickback in huge sums for their trucks to go in and load and that inflated the prices of haulage. It really came with its own challenges. In my opinion, l would advise that they make it in such a way that drivers can get their call ups online and print it out. When a system is not working there are people behind its failure, it is either those who are supposed to make the system work are benefiting from its failure or those managing it are ignorant of how that very system works. You know how many years we suffered on Tincan- Apapa ports Access road due to sabotage, until Governor Babajide Sanwo- Olu and other stakeholders synergized to dismantle the gridlock to the amazement of many who never believed it was possible. That milestone achievement was because the Taskforce team came out boldly and dared the non-state actors and saboteurs who never wanted that corridor to be free because of the money they were making on daily basis. Today, all the roads are free, and one would ask, where are all the trucks blocking the roads then? So there must be a way out if people agree to do the right thing. Where will you start fighting from. I will advise importers and their agents to always make the right declaration to avoid losing their time, and every time lost is money because the demurrage must be paid. My candid advice to importers is that once they pay for shipping of their consignment to Nigeria, they should make available all the necessary documents quite in time so that once the vessel berthes, their agents will start the clearing processes to avoid additional costs.
QUS: Are government agencies doing their best to facilitate trade ?
SON, NAFDAC and other agencies are doing their jobs, and l commend them for that. But l must also frown at the areas that they are not doing well. SON officials also extort money from freight forwarders, and you know, without SONCAP you can not get your PAAR, and without NAFDAC document you can not get your PAAR as well. So these agencies sometimes capitalize on one loophole or the other to extort money from freight forwarders instead of doing their jobs the way they should. Such compromise is not for the good of the country.
QUS: Do you have any advice for freight forwarders who are always under work pressure?
Freight Forwarders should always try as much as they can to reduce stress, the business has a lot of pressure and some importers are not appreciative of the service rendered to them. They have that notion that agents look for gain where they did not invest, but forgetting that these people make a lot of sacrifices for them to remain in business. I still want to emphasize that if importers and agents make honest declaration, the work will be less stressful for them. They should always make time for relaxation, exercise their bodies, and get medical attention each time they feel unwell. Health they say, is wealth.
