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20 — Vanguard, WEDNESDAY, APRIL 21, 2021<br />
SOME fees and charges collected by shipping<br />
companies and terminal operators from Nigerian<br />
shippers have pitched them against the nation’s Port<br />
Economic Regulator, PER, the Nigerian Shippers’ Council,<br />
NSC, for over a decade now. But the importers and exporters<br />
are still subjected to the huge cost arising from the charges<br />
while Nigerian economy suffers.<br />
Some of the charges include; Shipping Line Agency Charges,<br />
SLAC, Container Deposit Charges, CDC, Container Cleaning<br />
Charges, CCC, Storage Charges and others.<br />
SLAC is an extra charge slammed on shippers after it was<br />
already included in the shipping charges paid by the shipper<br />
at the point of import.<br />
The CCC is slammed on all containers even when such<br />
containers do not carry items that will need a cleaning after<br />
content discharge.<br />
CDC is peculiar to only Nigeria. It is paid as a refundable<br />
deposit in lieu of the container pending the time the content<br />
is removed and the empty container returned to the shipping<br />
lines who are the owners of the empty container. However, in<br />
practical terms, the return is made difficult by the inaccessibility<br />
of the ports and the shippers are made to incur demurrages<br />
for delayed returns and end up losing the CDC refund. If the<br />
shipper returns the container late, he or she loses part of the<br />
deposit. As a result of the bad situation of the port access roads<br />
which generates traffic gridlock, trucks returning containers<br />
spend several weeks on the road while the terminal operators<br />
are accused of rejecting or causing obstruction for those<br />
intending to return their containers to ensure that they lose<br />
their deposit.<br />
However, an official of one of the terminal operators told<br />
Vanguard Business Magazine that the shipping lines decided<br />
to impose CDC because importers and their agents default in<br />
returning their containers after use.<br />
Between 2006 and 2020, the accumulated illegal charges<br />
collected by terminal operators and shipping companies is<br />
estimated at over N4 trillion,<br />
as contained in the advert by<br />
the NSC.<br />
Following series of<br />
complaints by stakeholders in<br />
the Maritime industry, the<br />
NSC waded into the matter<br />
and directed that both<br />
shipping lines and terminal<br />
operators stop further<br />
collection as well as return to<br />
the shippers all monies<br />
already collected.<br />
Speaking during a meeting<br />
with Customs Licensed<br />
Clearing Agents and<br />
Maritime Truck Owners in<br />
Lagos, Executive Secretary of<br />
the Council, Hassan Bello,<br />
had said then that his<br />
organisation remains<br />
committed to protecting the<br />
interests of users of shipping<br />
services in Nigeria.<br />
Bello also disclosed that the<br />
Council is working closely<br />
with the National Insurance<br />
Commission, NAICOM to<br />
stop further payment of CDC.<br />
He said that both parties<br />
have been meeting to<br />
strategise on the best<br />
measures to curb the huge<br />
costs associated with the<br />
charges, adding that with the<br />
difficulty the importers,<br />
agents, and truckers go<br />
through to return their empty<br />
containers, it is not right to<br />
charge them for the delays<br />
which is not their fault.<br />
Bello stated: “People should<br />
return containers as and<br />
when due but to be honest, the<br />
contract is frustrated because<br />
there is no access for<br />
returning these containers<br />
and you are going to charge<br />
importers and their agents<br />
demurrage, which is not fair.<br />
“We have looked at what is<br />
obtainable in other countries<br />
where you can have it like an<br />
insurance service. It should be<br />
By Godfrey Bivbere<br />
insured, instead of paying<br />
N300,000 as container<br />
deposit, you can pay an<br />
insurance company N20,000<br />
and the insurance company<br />
will make sure your container<br />
is returned by any means<br />
necessary.<br />
“It is because of this rush to<br />
escape demurrage that you<br />
see a lot of trucks laden with<br />
empty containers that are<br />
meant for return, choking up<br />
the roads to the container<br />
terminals around the ports.<br />
That regime of empty<br />
containers has to be<br />
addressed holistically,” he<br />
noted.<br />
It will be recalled that the<br />
NSC published an<br />
advertisement announcing<br />
the reversal of illegal storage<br />
charges at the ports to what<br />
was in force as at May 1, 2009.<br />
The Council also ordered an<br />
extension on the free storage<br />
period at the port from three<br />
days to seven days, and<br />
equally directed shipping<br />
companies to reduce their<br />
shipping line agency charges<br />
from N26,500 to N23,850 per<br />
TEU and from N48,000 to<br />
N40,000 per TEU.<br />
They also directed shipping<br />
agencies to refund container<br />
deposits to importers and<br />
agents within 10 working days<br />
after the return of the empty<br />
•Minister of Finance, Zainab Ahmed<br />
Economy still groaning<br />
from arbitrary port charges<br />
containers.<br />
But not satisfied with the<br />
directive of the NSC, terminal<br />
operators under the auspices<br />
of Seaport Terminal Operators<br />
of Nigeria, STOAN and<br />
shipping agencies under the<br />
Association of Shipping Line<br />
Agencies, ASLA dragged the<br />
Council before the Federal<br />
High Court, challenging its<br />
powers to reduce their<br />
charges.<br />
In a suit No. FHC/CS/1646/<br />
2014 – ALRAINE SHIPPING<br />
AGENCIES (NIG) LTD &<br />
ORS Vs NIGERIAN<br />
SHIPPERS’ COUNCIL and<br />
SUIT NO. FHC/CS/1704/2014<br />
– APAPA BULK TERMINAL<br />
LTD & ORS Vs NIGERIAN<br />
SHIPPERS’ COUNCIL, the<br />
Federal High Court in Lagos,<br />
while affirming the position of<br />
the Nigerian Shippers’<br />
Council, NSC as the<br />
Economic Regulators of the<br />
Ports, held that the Shipping<br />
Line Agency Charges, SLAC<br />
levied and collected from<br />
Nigerian shippers by the<br />
Shipping Companies since<br />
2006, is illegal and that the<br />
shipping companies should<br />
account and pay to Nigerian<br />
shippers all monies or fees<br />
charged and collected since<br />
2006 as SLAC.<br />
Dissatisfied, the shipping<br />
companies and the Terminal<br />
Operators, mostly foreignowned,<br />
filed suits to<br />
invalidate the actions of the<br />
NSC.<br />
The Nigerian Shippers’<br />
Council filed a Counter<br />
Affidavit to the suits and<br />
counter-claimed in relation to<br />
the Shipping companies case<br />
as follows:<br />
For 2017 and 2018, the<br />
amount paid by the<br />
importers as container<br />
deposit stood at N66.8<br />
and N80.9 billion<br />
respectively, according to<br />
the NSC<br />
•Minister of Transportation, Rotimi Amaechi<br />
1. A DECLARATION that by<br />
virtue of the provisions of<br />
Clause 2(a) and(b) of the<br />
Memorandum<br />
of<br />
Understanding between<br />
Providers and Users of<br />
Shipping/Port and Related<br />
Services dated 28th March<br />
2001, the Plaintiffs do not<br />
have the powers or rights to<br />
unilaterally introduce and<br />
impose Shipping Lines<br />
Agency Charges, SLAC;<br />
2. A DECLARATION that<br />
the unilateral introduction<br />
and imposition of the<br />
Shipping Lines Agency<br />
Charges, SLAC by the<br />
Plaintiffs and collection of<br />
same from shippers or users<br />
of shipping/port-related<br />
services from 2006 to date, is<br />
illegal, ultra vires, and<br />
therefore null and void;<br />
3. AN ORDER directing the<br />
Plaintiffs to immediately stop<br />
the collection of the Shipping<br />
Lines Agency Charges, SLAC<br />
from users of shipping/port<br />
and related services; and<br />
4. AN ORDER directing the<br />
Plaintiffs to account for and<br />
pay to the Defendant, with<br />
interests at the rate of 21% per<br />
annum, all monies or fees<br />
collected by the Plaintiffs as<br />
Shipping Lines Agency<br />
Charges, SLAC from shippers<br />
or users of shipping/portrelated<br />
services from 2006 to<br />
date.<br />
Continues on page 21