How Chinese Shipping Agencies Milk Nigerian Shippers of Millions Through Groupage Containers

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Apapa-Ports

By DAPO OLAWUNI

Fresh indications have emerged that Chinese Shipping Lines and their agents operating in Nigeria are taking advantage and ripping off Nigerian shippers through collection of double charges on handling of groupage containers, as well as causing uneccessary delays in cargo delivery.

A groupage container is when two or three consignees come together and put their cargoes into a single container as a full container load.

The Nigerian Shippers have however raised an alarm that local shipping agents put in a lot of charges against the consignees, which is far and above the cost of the cargo itself.

Recently, the Nigerian Shippers Council through the Port Standing Task Team (PSTT) the operational arm of the Nigeria Port Process Manual (NPPM) domiciled under the Council, secured the released of three consignments detained by a Chinese Shipping Company; COSCO Shipping Limited after one year of delay.

Storage charges worth N1.9 million was equally reportedly waived by the company to the consignee.

In a press release issued by the President of Shippers Association Lagos State, Rev Jonathan Nicole lamented that it takes three months to move groupage containers from the ports for unstuffing at the warehouse, and yet, nobody pays the importers for delays.

He also raised alarm of capital flight, saying that most of these Chinese Shipping Agencies carry out clearance of Groupage Containers with additional cost to be paid in foreign currency.

Rev Nicole said “It is confirmed that one aspect of ripping off Shippers and Importers in Nigeria is through Groupage shipments. The Shipping Lines Agents in Nigeria are academical in handling of Groupage Containers”

“Freight charges are paid fully from Port of Loading to Port of Destination in foreign currency. No hidden charges are transferred to the Consignee whether or not there is trans-shipment from another port during transit”

“On arrival, the Shipping Lines Agents notifies the consignees who has the Original House Bill Ladings indicating their own cargo to come and pick up their cargo after unstuffing. In some cases, the local receiving Agency delays in receiving the Containers for up to 1 or 2 months”

“After receiving the Containers and unstuffing at their warehouse, the Consignees are informed to come and pick their cargo. Within this period, the local Agent puts in a lot of charges against the consignees far and above the cost of the cargo. It is even cheaper to clear the container direct if all the Consignees agree”

“The Master Bill Lading is normally consigned to the ship’s local Agent while the House Bill Ladings shows owners of each cargo in the Container. We have more Groupage issues mainly from the Chinese Shipping Agencies handling Groupage Containers in Nigeria” he said

The SALS boss noted that most successful big Importers in Nigeria today started with Groupage shipments.

According to him, back in the days, the Nigerian Ports Authority had warehouses inside the Ports and Containers are moved directly from the ship or stacking areas to the warehouses for unstuffing.

“We really do not understand why it takes 3-months to move groupage Containers from the Ports for unstuffing and nobody pays the Importers for delays.

“There are no aspect of clearance of Groupage Containers to attract additional cost to be paid in foreign currency. It should stop.

“On storage charges, the bills must be commensurate with the number of days the cargo was stuffed in the warehouse and not the arrival date of the vessel.

“The consignee should not be subjected to excessive transfer charges from the designated Port to the receiving warehouses.

“All charges relating to the shipment of the cargo were paid upfront before shipment. It is like someone travelling to England via Lufthansa Airlines. All Freight paid and passengers luggage marked London. The transshipment therefore is Frankfurt. Luggages meant for final destruction are loaded into the Aircraft for final destination.

“The owners of cargo are not expected to pay additional cost for handling. It is the same thing with Groupage cargo.

“In considering the difficulties in Nigeria clearing systems, simplified methods must be put in place to curtail excessive charges on Shippers.

“Alternatively, Importers should be paying Freight charges in Nigeria Currency to Ship owners. We have a right to protect our sovereignty. Afterall, we are one big family” Nicole stated

Also speaking on activities of shipping companies in Nigeria, the Nigerian Shippers Council Cordinator of NPPM, Mr. Moses Fadipe told our correspondent that COSCO Shipping Limited held three containers belonging to a Nigerian Shipper from March 2020 and was only released in June 2021 after the Council intervened.

He described the dispute between COSCO Shipping and the consignee as an impediment to cargo clearance processes, which NPPM frowns at.

Fadipe said “We found out that they acted arbitrarily being the stronger party in the transaction and this made them liable for all storage and demurrage charges during the period in question.

“The intervention by the officials of PSTT yielded positive results for the consignee to take delivery of his consignments after a long period.

According to him, the shipping company should have device a means to recover the debts owed initially by the consignee rather to place lien on the consignments for a longer period.

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