At Last, Shippers’ Council Comes Hard On Terminal Operators, Shipping Coys

• Executive Secretary Nigerian Shippers Council: Mr  Hassan Bello,
Chairman Shipping Association of Nigeria: Mr Val Usifoh and
Chairperson Seaports  and Terminal Operators Association of Nigeria:
Princess Vicky Hastrup

• Orders Reversal Of Progressive Storage Charge to Pre-May 2009 Rate

• Increases  Container Free Storage Period to 7 Days

• Increases Container Demurrage-free Days to 10 Days

 

After what seems like an endless wait, the Nigerian Shippers’ Council has finally stamped its authority as the economic regulator of the ports.

The Council has reeled out daring interventions in the commercial relationships between users and providers of shipping and terminal handling services in all the nation’s sea ports.

Coming months after it was appointed as the economic regulator of the nation’s port system, the Nigerian Shippers’ Council in a public notice to terminal operators and shipping companies announced major reviews of some controversial levies and charges, for which importers and clearing agents have often protested.

Specifically, the interventions which are expected to take effect from November 3, 2014, include: Progressive Storage Charge and Free Storage Period for terminal operators. It also came hard on  Shipping Line Agency Charge, Container Deposit, Container Cleaning And Maintenance Charge, as well as Container Demurrage, for shipping companies.

In the case of terminal operators, they have been ordered to reverse collections in respect of Progressive storage Charge, Free Storage Period to the pre-May 2009 rates that were approved by the Minister of Transport.

Similarly, the Shippers’ Council has increased the container storage free days grace to seven days, up from three days that the terminal operators had been allowing. It also pegged the maximum charge for storage to N10,000, irrespective of the number of days during which imported containers stay at the terminal.

In the case of shipping companies, the Nigeria Shippers’ Council also announced some far-reaching decisions regarding: Shipping Line Agency Charge and Container Deposit charge. Also affected are: Container Cleaning and Maintenance Charge as well as Container Demurrage charge.

Specifically, on the controversial (refundable) container deposit charge, the Council ordered that as from November 3, 2014, the deposit must be refunded to the importer or the clearing agent within 10 days after the return of the container or pay interest rate on such deposit for the number of days they refund was not made.

Similarly, container demurrage-free period has been increased from five days to 10 days, while it pegged the controversial ‘container cleaning and maintenance charge’ at N1,500 only for any category of containershttp://shippingposition.com.ng/article/last-shippers%E2%80%99-council-comes-hard-terminal-operators-shipping-coys