Tuesday 11 November 2014

Shippers’ Council Defeats STOAN, Shipping Companies In Court

Executive Secretary of Nigeria Shippers Council (NSC),
Barrister Hassan Bello
The Federal High Court in Ikoyi, Lagos, yesterday struck out the court injunction earlier obtained by the Seaport Terminal Operators of Nigeria (STOAN) against the Nigerian Shippers’Council on technical grounds.
Justice Buba Ibrahim, in his ruling consequently gave the Nigerian Shippers’ Council the go-ahead to implement its earlier directive to the terminal operators and shipping companies on some of their charges.
The Presiding Judge said that the parties which came by way of originating summons, did not tell the court the issues (questions) for determination.``Since the court cannot proceed without knowing the right and interest of the parties which are inextricably tied to the question of determination, the court cannot proceed on that, `` Buba said.
A representative of the counsel to the plaintiff, Mrs Funke Agbor, had earlier argued that the court could not proceed with the case because the issues for determination had not been explained.
The Shippers’ Council had ordered an increase in the storage period at the ports from three days to seven days.
The Council equally directed shipping companies to reduce their charges from N26,500 to N23,850 (20 ft container) and from N48,000 to N40,000 (40 ft container).
It also directed shipping agencies to refund container deposits to importers and agents within 10 days after the return of the empty containers.
The terminal operators under the aegis of STOAN had on October 31 secured an interim injunction stopping the Shippers’ Council from implementing the directive on port charges, which it had published on October. In the ‘public notice’, the Council had directed a reversal of storage charges at the ports, to the rates that were in force as at May 1, 2009.
Meanwhile, a second suit that was filed by the Shipping Association of Nigeria (SAN) also against the Shippers’ Council has been adjourned till 17th of November 2014.
The plaintiffs in the suit are Alraine Shipping Agencies (Nig) Limited/ Cross Marine Services; CMA CGM Delmas; Comet Shipping Services Nigeria Limited and Grimaldi Agency Nigeria Limited.Others are Gulf Agency and Shipping Nigeria Limited, Hull Blyth Nigeria Limited, Lagos and Niger Shipping Agencies Limited, Maersk Nigeria Limited/Safmarine, Med. Shipping Co. Limited, Mitsui Osk Lines (WA), Pil Nigeria Limited, Sharaf Shipping Agency and Association of Shipping Line Agents.
In the suit, SAN, which is the umbrella body of foreign shipping lines in Nigeria, is challenging the Council’s powers as economic regulators to interfere in rates being charged by the shipping lines.
Speaking with journalists after the ruling yesterday, Counsel to‎ the Nigerian Shippers’ Council; Mr Emeka Akabogu noted that with the STOAN case thrown out, the Shippers’ Council can now commence implementation of its directive immediately.
"What this means is that as at today, with the matter being struck out, the injunction which was obtained by the STOAN is immediately vacated by virtue of the matter being struck out on technical grounds"
"Even if they want to re-file they can, but the injunction is no longer valid and the shippers’ council is able to implement the charges immediately", he explained.
‎Akabogu said that the Council is also challenging the position of SAN and that it is very confident that the court is going to take care of the matter once and for all.
According to him, because of the economic importance of the case to the nation, rather than deal in any preliminary matters, the court will be going straight into the heart of the matter and accelerate the hearing.
He said that, "this is what we have told the court and the court has adjourned that matter till 17th of November".
"It is very important that this is coming at this time because we know that largely, Nigerian import interest has been concerned about this matter for a very long time, it is interesting that it has now been brought to court, not by the cargo interest but by the carrier interest, and it is important we deal with it once and for all, because we believe this issue is draining trillions of Naira from Nigeria and Nigerian Government everyday" he said.
‎On his part, Counsel to the Shipping Association of Nigeria; Mr Chidi Ilogu said that the ruling in favour of the Shippers’ Council is mere technicalities.
"My view of the ruling is that it is mere technicalities, the action can be re-filed, it doesn't stop the action from being progressed, it is only the technical aspect that was addressed by the court that no questions for determination were posed, but even on the face of the document, there are issues that have been posed for the court to determine" he said.http://shippingposition.com.ng/article/shippers%E2%80%99-council-defeats-stoan-shipping-companies-court

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