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Worried by series of complaints by importers on the delay in container deposit refunds by liners, the Federal Government, through the Nigerian Shippers’ Council (NSC), is making a move to engage the service of insurance firms to underwrite the refund of the deposits.
Also, the council explained in Lagos that a new step would be taken to address shipping lines’ reluctance to send imported containers to Inland Container Depots (ICDs) scattered arround the country, thereby rendering these facilties useless.
The Executive Secretary of the council, Barr Pius Ukeyima Akuta, said that NSC had proposed a bill titled: “The carriage of goods by Land, Sea, and Rail” to the National Assembly to address the challenges.
He explained in Lagos that the bill had been sent to the National Assembly. Represented by the Director of Special Duties, Mr Mustapha Zubairu, the executive secretary stressed that once that is passed, it would certainly address shipping companies’ hesitancy in sending cargoes to the dry ports as part of origin and destination.
Also, the Deputy Director, Monitoring and Enforcement at the council, Mr Sarumi Adesina, said that the reason most shipping lines refuse to stem containers to bonded terminals and dry ports was because they have suffered significant container losses in recent past.
He explained: “We have been inundated with a lot of complaints about container deposit refunds. The industry is full of shady deals, especially involving freight forwarders. They are not helping matters.
Shippers, who deposit money for containers often failed to have it refunded when they return containers.
“In recent times, this refunded money does not go back to the owner and when the money is not refunded, the shipping line claims the container was not returned, container deposits are not paid back and consignees are not returning containers.
Many containers are even being converted into shops. “In my area at Amuwo Odofin in Lagos, someone built a story building with containers. This is happening in Lagos and we don’t know what might be happening in the North.
This discourages companies from releasing containers to distant destinations.”
However, the deputy director said that shippers’ council was not folding its arms to address the challenges, noting that there was an initiative through an insurance company to underwrite the refund of container deposits.
According to him, the idea was for consignees to pay a small service charge instead of the typical deposit, ensuring containers were returned to shipping companies within a specific timeframe.
Sarumi added: “This would avoid the issue of unrefunded deposits and guarantee the return of containers. Shippers’ Council is exploring this concept and is at the stakeholder engagement stage.
Very soon, we will engage stakeholders, including maritime journalists, to make inputs and give ideas. “Once implemented, it will benefit all parties: shipping lines will have the assurance of container returns and consignees will avoid large deposits with no guarantee of refunds.
The only cost will be a minimal service charge, creating a win-win situation.” Following series of complaints such as arbitrary charges, Container Deposit Refund ( CDF), damage claims, debt/ demurrage recovery for shipping companies, import and export fraud among others, the council handled 1,123 by recovering a total sum of N759 million, $1.14 million and Euro 3.27 million for the shippers between 2015 and 2020.
Also in 202I, the council recovered the sum of N2.50 billion, $14,880 and AED 89,175, while in 2022, the sum of N203. 54 million and $17, 353 was saved for shippers.
Meanwhile, the Corporate Affairs Manager of SIFAX Group, Olumuyiwa Akande, revealed that the Federal Government had been renewing terminal operators concession agreement every six months, noting that port operators were not acting illegally.
He noted: “Ever since the expiration of the concession, there has been a six-month renewal that the port operators get. So after every six months, there is a renewal. So the port operators are not operating legally.”
Recalled that in August 2024, the National Association of Government Approved Freight Forwarders (NAGAFF) said Maersk Line had made its container deposit refund process complex for its members.
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