Shippers’ Council clamours for abrogation of container deposits

Shippers’ Council clamours for abrogation of container deposits

The Executive Secretary of the Nigerian Shippers Council, Barrister Hassan Bello has advocated for the scrapping of container deposits and urged shipping companies in Nigeria to stop their collection.
Bello, who made the call in Lagos this Monday while on tour of shipping lines, observed that, this became necessary in order to facilitate ease of doing business at the ports.
While admonishing shipping companies on the high level of abuse to which this process has been subjected, Bello noted that 80 per cent of complaints received by the Council from importers and their agents were mainly on the refusal of Shipping lines to refund the deposits.

“80% of the complaints received by the Council from shippers and freight forwarders bother mostly on non-refund of the deposits made by the shippers within the stipulated time which at times leads to the shippers forfeiting the deposits”, Bello noted.

He also queried the indemnity issued by freight forwarders even as he said it was not legal.

Bello said, “One other issue we are here to discuss is the issue of container deposit refund.

“If you recall, we have had agreement with shipping companies to return these containers deposits within four working days but we rather you don’t take the deposit at all which is doable.

“You can come up with a system where we can work it out because it constitutes 80% of the complaints that we have.

He however condemned the situation where shippers were made to pay for demurrage incurred in the process of returning the containers and there was nowhere for them to drop the empty containers.

“Most of these shippers will want to return these containers but they have nowhere to return them and the demurrage starts counting, that is not good ethical practice.

“The indemnity that the freight forwarders issue, I think, is not also a very good practice. The relationship should really be between you and the shippers.

“That indemnity may not be totally legal but we have to look at it. The whole idea is to create a balance where your interests are protected and also the interest of the shippers.

In his response, Ascanio Russo, the Managing Director of Grimaldi Shipping Nigeria Limited, said that, the shipping line paid refunds within 3 days after the application might have been sent to the agency and verified that the containers were returned in good shape.

While explaining the level of automation of the Agency, Russo maintained that all clearance process in the agency have been automated but regretted that clearing agents still cluster around the port.

Meanwhile, the Director, Customer Service Central and West Africa of Maersk Line, Razak Ngula, said about 1,600 containers belonging to the shipping line were still being held by shippers..

He stated that the container deposit was not to recover the value of container and that container refunds were done within three days to customers.

His words, “1,600 boxes are still not returned and they are needed for voyage. The deposit is not to recover value of a container.

“We ensure that the refund process is smooth and can be done within 3 working days”, Ngula stated.

Container deposit is one of the multi- faceted charges imposed on Shippers by shipping companies as a form of indemnity against any damage to containers released to Shippers for cargo transportation.
It is usually refundable on the return of the container in good condition.
However, shipping companies have been accused of refusal to refund the deposits, even when the containers are returned in good condition.