OVERTIME CARGO: Shippers’ Council Intervention On Power Equipment Saves Economy Over N406m

The Nigerian Shipper’s Council said it has saved the nation  over N406m demurrage and storage charges on national grid equipment abandoned by  electricity companies since 2012 .

 

According to a formal letter of complaints  by  management of Transmission Company of Nigeria (TCN）and Niger Delta Power Holding Company（NDPCN) requesting the Nigerian Shipper’s Council”s intervention for waiver on  demurrage and storage  charges on the  abandoned national power project containers since 2012, the NSC swiftly moved in and  resolve the matter in 2022.

However, in a quest to amicably resolve the complaints to enable TCN & NDPCN take delivery of the consignments, the Council’s Compliants Unit organized series of  tripartite meetings with all the parties involved where it holistically x-rayed the quantum of indebtedness of five shipping companies involved in the sea transportation of the cargoes.

The shipping line agencies involved are: Maersk Line, CMA-CGM, Hapag-Lloyd, MSC and Lagos & Niger Shipping.

Similarly, for the storage charges , the terminal operators involved include; West African Containers Terminal（WACT-Onne）Port & Cargo Handling Services (Sifax) Mitchelle, Sapid & Tin Can Island Containers Terminal (TICT, with well over  over N2 Billion indebtedness.

The ombudsman in port operations expressed dismay over the negligence exhibited by those involved in the  clearing process on behalf of the government cargoes on Power Projects Equipment and warned that it will not tolerate such act of sabotage.

On the abandoned MSC containers, the Complaints Unit of the Council observed that NDPH abandoned the following containers with the following Bill of Lading：MEDUM11350874, MEDUIN592015, MEDURP437730 & MEDUL166795.

According to Compliants Newsletter, an In-  house publication from the Compliants Unit , Nigerian Shippers Council , first quarter edition of 2023, the port economic regulator objectively intervened where management of MSC on its own granted 50% waiver to NDPHCN out of the accrued demurrage of N57,736,800.00 only.

In a related development, the same NDPHCN  abandoned about 69 containers belonging to the MSC that contained power projects equipments which accrued demurrage valued of N655,466,867.00 but the Shipping Company due to the Council”s intervention  granted  80% waiver.

The Council was however unhappy over the demurrage owed Maersk by NDPHCN on its only 1X40FT, amounting to N16,815.000.00 but have agreed to offer 50% waiver on the total sum.

The Council further frowned over another abandoned 20 containers of CMA-CGM containing National Power Projects Equipments which accrued demurrage value of N201,801.338.80 only, the Shipping Company has graciously granted 60% waiver to enable them take delivery of the National Power Equipments.

However, in one of the tripartite meetings, the same NDPHCN was reported by Hapag-Lloyd to have abandoned its 6 containers at the ports which eventually attracted demurrage of N209,778.559.79 only but they promised to get back to the Council after contacting their principal if there would be any waiver,

While Safemarine  & Michelle Terminals reported NDPHCN for abandoned 3 of their containers at the ports which attracted storage of N175,507,200.00 and N39,888.000.00 only, but granted 50% waiver because of Council”s intervention.

The NSC however reiterated that as a referee in the Industry, strongly discouraged waiver requests from any know  non compliance stakeholder, especially when the operational inefficiency was not from the service provider, adding that this is because   the Service Providers were here to make profits, pay all the statutory taxes, pay their employees, which also believe will enhance the ease of doing business in the Country.

The Council further warned  freight forwarders handling government cargoes to do the needful and always exhibit professionalism in handing their beat, particularly in cases that has to do with the image of the federal government of Nigeria on its effort of enhancing National Power Plants and distributions across the Country.

“As a result of the interventions, the Council was able to save the National Economy over N406M （Four Hundred & Six Million Naira）only excluding inconclusive complaints that emanated from Port Harcourt and Hapag Lloyd.”

Expressing their appreciations to the Council,  management of TCN & PHCN thanked the port economic regulator for its interventions which according to them, will save the successful execution of all power projects across the Country.