The Assistant Director and Head of the Compliant Unit at the Nigerian Shippers’ Council (NSC), Bashir Mohammad, disclosed several critical issues during a significant meeting held in Lagos. This meeting involved the Council, the European Union Delegation, and the Economic Community of West African States (ECOWAS). The discussions centered around the myriad of complaints and challenges affecting port operations in Nigeria.
Complaints from Stakeholders
Mohammad highlighted that the Council faces a myriad of complaints from various stakeholders. These stakeholders include service providers, shipping companies, terminal operators, consolidators, and consumers. Each group has voiced concerns about different challenges that are currently impacting port operations. These complaints range from operational inefficiencies to financial burdens imposed by various practices within the port system.
Financial Recoveries by the Complaints Unit
In addressing these complaints, the Complaints Unit of the NSC has been actively working to resolve issues and recover funds. Mohammad reported that in 2023, the unit successfully treated valid complaints and recovered a substantial amount of N362.1 million. This was a significant increase compared to the N203.5 million recovered in 2022. The unit’s efforts in previous years also yielded notable recoveries, with N2.5 billion in 2021 and N35.9 million in 2020. These recoveries highlight the unit’s ongoing commitment to addressing stakeholders’ grievances and ensuring financial accountability.
Recurring Grievances with Shipping Companies
Among the recurring grievances directed at shipping companies, Mohammad pointed out several key issues. One major concern is related to container logistics. Stakeholders have reported delays in container deposit refunds, which can significantly impact their operations. Additionally, there are excessive demurrage and detention charges that stakeholders find burdensome. Unexpected surcharges imposed by shipping companies further exacerbate these issues, leading to financial strain on importers and exporters.
Criticism of Shipping Company Practices
Mohammad also noted that there have been instances where shipping companies impose charges on subsequent cargo shipments before releasing them. This practice has drawn significant criticism due to its impact on importers and exporters. The additional charges can create financial hurdles and disrupt the smooth flow of goods, affecting the overall efficiency of port operations.
Discrepancies in Bill of Lading Clauses
Another critical issue highlighted by Mohammad is the discrepancies in the bill of lading clauses. Many importers reportedly overlook or misunderstand these contractual terms, leading to disputes and penalties imposed by shipping companies for non-compliance. These discrepancies can result in financial losses and operational delays, further complicating the logistics process.
Infrastructure Shortcomings at Ports
Mohammad emphasized that infrastructure shortcomings at ports also contribute to operational inefficiencies. One significant issue is the insufficient provision of holding bays. This lack of adequate infrastructure exacerbates problems such as cargo damage, pilferage, and theft. The absence of proper holding facilities can lead to increased risks and financial losses for stakeholders.
Unauthorized Triangulation of Containers
The unauthorized triangulation of containers to inland dry ports without consignee consent is another issue that complicates logistics and regulatory oversight. Mohammad pointed out that this practice creates additional challenges for stakeholders, as it disrupts the planned logistics flow and can lead to regulatory complications.
Arbitrary Practices in Seaport Terminals
Within the seaport terminals, Mohammad highlighted several arbitrary practices that contribute to operational inefficiencies. One such practice is the arbitrary allocation of storage space, which can lead to delays in container examination. These delays exacerbate port congestion issues, making it difficult for stakeholders to efficiently manage their cargo.
Delays in Cargo Clearance
Delays in cargo clearance due to port-related damages have continued to be a source of contention. Despite efforts by the NSC to resolve such disputes through established protocols, these delays persist. Mohammad noted that these delays can significantly impact the overall efficiency of port operations and create financial burdens for stakeholders.
Storage and Port Charges on Stemmed Containers
The application of storage and port charges on stemmed containers, alongside inconsistent barging practices, has triggered numerous complaints. Mohammad explained that these charges and practices create additional financial burdens for stakeholders and complicate the logistics process.
Alien Charges and Other Contentious Issues
Mohammad also disclosed the presence of alien charges and other contentious issues that have been a focal point of the NSC’s efforts. These charges add to the financial burdens on stakeholders and create additional challenges in managing port operations efficiently.
Active Engagement with Industry Players
To address these issues, the NSC’s Complaints Unit has been actively engaging with industry players. Mohammad emphasized that the unit is working to streamline processes and ensure compliance with established guidelines. By addressing these issues head-on, the council aims to decongest the ports and foster a more conducive environment for trade facilitation and economic growth at Nigerian ports.
Challenges Faced by the Complaints Unit
Despite these achievements, the Complaints Unit faces several challenges. One significant challenge is the provision of fictitious addresses by importers, which complicates the resolution of disputes. Additionally, there are jurisdictional limitations in cases involving consignees’ disputes. These complexities underscore the ongoing need for robust regulatory oversight and collaborative efforts among all stakeholders.
In conclusion, the meeting between the NSC, the European Union Delegation, and ECOWAS highlighted several critical issues affecting port operations in Nigeria. The NSC’s Complaints Unit has been actively working to address these issues and recover funds for stakeholders. However, ongoing challenges necessitate continued efforts to ensure efficient and effective port operations.
