Delay In Refund Of Container Deposits: SEREC Proposes Solutions To Shipping Industry Challenges

The Sea Empowerment and Research Center (SEREC) has raised concerns over persistent delays in the refund of container deposits by shipping lines, a practice that has caused significant frustration among shippers and freight forwarders.

In response, SEREC has outlined a series of recommendations aimed at addressing this issue and improving container management efficiency within Nigeria’s shipping sector.

According to Eugene Nweke, Head of SEREC, the problem stems from shipping lines collecting container deposits but failing to refund them promptly, leading to operational bottlenecks and financial strain on stakeholders.

Key Recommendations by SEREC officer advocated for the establishment of clear regulations and guidelines that mandate timely refund of container deposits by shipping lines, coupled with penalties for non-compliance.

According to him, the center calls for the development of industry-wide standards to standardize deposit refund processes, including the adoption of automated systems to accelerate refunds.

On stakeholder engagement, Nweke emphasized the importance of collaboration between shipping lines, shippers, and freight forwarders to identify challenges and co-create effective refund mechanisms.

The organization urged for transparent communication regarding refund timelines and the implementation of tracking systems to monitor refund statuses.

Primarily on alternative deposit schemes – he stressed the need to alleviate the burden on shippers and freight forwarders, pointing out that SEREC suggests exploring alternative schemes such as insurance covers or collective funds managed by industry stakeholders.

“By adopting these measures, SEREC believes that congestion at ports can be reduced, operational efficiency enhanced, and overall container management improved, fostering a more sustainable and reliable shipping environment in Nigeria.

Eugene Nweke concluded, saying implementing these solutions will not only benefit the shipping industry but also strengthen Nigeria’s position as a competitive maritime hub.”