Shippers’ Council directs shipping companies to refund demurrage

Segun Oladipupo

The Nigerian Shippers’ Council (NSC) has directed all shipping line agencies to stop henceforth collection of demurrages on goods stuck in the port.

The Economic Regulator has also told the shipping agencies to refund all demurrage collected since March 30 to the consignees.

This information is contained in a press release made available to the public by the management of the Council on Friday.

The Council argued that as a result of the lockdown arising from federal government’s directive at curtailing the raging covid 19 in the country, some importers are unable to move their cargo from the port adding that failure to move their cargo is not their faults.

The release stated that “In line with the presidential directive that port operations are essential services, Nigerian Shippers’ Council (NSC) has been monitoring activities to ensure that seaports run efficiently and smoothly within the present circumstances, and in compliance with the existing health and safety guidelines for the prevention and containment of the spread of COVID-19

“During the daily monitoring exercise, it was observed that some shippers, through no fault of theirs, are unable to take delivery of their cargo because of lack of public transportation, inadequate banking services and limited service providers due to reduced workforce, etc.

“Based on the forgoing, Nigerian Shippers’ Council has directed shipping companies to suspend demurrage charges during the period of the COVID-19 lockdown with effect from 30th March 2020.

“This strictly applies to cargo that was discharged at the terminals from the 30th of March 2020.

“To this end, demurrage charges during this period should be refunded to the consignee or his authorized agent. Suspension of demurrage during this period is an incentive for owners of cargo to accelerate the process of taking delivery of their cargo. This suspension of demurrage charges is not an excuse to delay or abandon cargo at the ports. Erring shippers will be sanctioned in addition to having to pay the demurrage due on their cargoes,” it concluded.

Editing by ‘Biodun Soyele