Shippers Council compels COSCO Shipping to refund N3.5m excess charge

ABIOLA Seun         |         

Cosco Shipping (Nigeria) Agency Limited has refunded the N3.5million  excess surcharge to a steel company,  Sunflag Nigeria Limited.

Recall that the Nigerian Shippers Council (NSC), has shut down the shipping company after demurrage overcharge on Sunflag and flagrant disregard to directive of the Council. 

Thereafter, a combined team of officials of the council and operatives of the Police Mobile Force had last week sealed off the operating office of Cosco Shipping located in Apapa, Lagos indefinitely over allegations of excessive demurrage billing on the steel importing firm.

But,  the deputy Director of the council in charge of Compliance, Monitoring and Enforcement Unit, Chief Cajethan Agu, who confirmed this development disclosed that in addition to refunding the excessive demurrage charges of N3.5million, the company also pledged its allegiance to the council as the port industry economic regulator.


According to him, the management of Cosco, led by its Chief Executive Officer, Saeed Karchi has assured the council that going forward, the company would henceforth ensure strict compliance with the country’s economic and port regulations.

This declaration by Cosco might not be unconnected with the fact that it has ran into similar troubles several times, which also led to closure of its business premises for imposing arbitrary shipping charges on hapless shippers not only Sunflag.

“The Managing Director of the company has made a pledge to the council that he is Nigeria to do business and would therefore comply with all trade regulations and obey extant laws of the land and the council has also assured that as a regulator, it will continue to provide a level playing field for all operators as well as promoting equity and fairness among all stakeholders”, Chief Agu said.

He also said that the sealed premises has since been opened for business, arguing that the council has no reason to prolong the closure one minute longer than necessary, especially since the issues have been resolved between both parties.

Recall that the council had in February this year sealed the Apapa office of the Chinese Container shipping agency for some hours over allegations by Sunflag Steel Nigeria Limited that it imposed $23,000 arbitrary demurrage charges on it, part of which it later refunded.

The council had following a similar disagreement between Nestle Plc and another shipping company, Gulf Agency Company GAC, warned stakeholders to always play the game by the rules, insisting that it would no longer tolerate dissipating of energy and resources on such issues arising from business transactions that should be properly documented.

ABIOLA Seun 

Cosco Shipping (Nigeria) Agency Limited has refunded the N3.5million  excess surcharge to a steel company,  Sunflag Nigeria Limited.

Recall that the Nigerian Shippers Council (NSC), has shut down the shipping company after demurrage overcharge on Sunflag and flagrant disregard to directive of the Council. 

Thereafter, a combined team of officials of the council and operatives of the Police Mobile Force had last week sealed off the operating office of Cosco Shipping located in Apapa, Lagos indefinitely over allegations of excessive demurrage billing on the steel importing firm.

But,  the deputy Director of the council in charge of Compliance, Monitoring and Enforcement Unit, Chief Cajethan Agu, who confirmed this development disclosed that in addition to refunding the excessive demurrage charges of N3.5million, the company also pledged its allegiance to the council as the port industry economic regulator.


According to him, the management of Cosco, led by its Chief Executive Officer, Saeed Karchi has assured the council that going forward, the company would henceforth ensure strict compliance with the country’s economic and port regulations.

This declaration by Cosco might not be unconnected with the fact that it has ran into similar troubles several times, which also led to closure of its business premises for imposing arbitrary shipping charges on hapless shippers not only Sunflag.

“The Managing Director of the company has made a pledge to the council that he is Nigeria to do business and would therefore comply with all trade regulations and obey extant laws of the land and the council has also assured that as a regulator, it will continue to provide a level playing field for all operators as well as promoting equity and fairness among all stakeholders”, Chief Agu said.

He also said that the sealed premises has since been opened for business, arguing that the council has no reason to prolong the closure one minute longer than necessary, especially since the issues have been resolved between both parties.

Recall that the council had in February this year sealed the Apapa office of the Chinese Container shipping agency for some hours over allegations by Sunflag Steel Nigeria Limited that it imposed $23,000 arbitrary demurrage charges on it, part of which it later refunded.

The council had following a similar disagreement between Nestle Plc and another shipping company, Gulf Agency Company GAC, warned stakeholders to always play the game by the rules, insisting that it would no longer tolerate dissipating of energy and resources on such issues arising from business transactions that should be properly documented.

© 2018, maritimemag. All rights reserved.