Shippers Council Engages Underwriters to Resolve Bottlenecks in Container Deposit Refunds

—Sets to Address Shipping Lines Refusal to Stem Containers to Inland Dry Ports

—As Terminal Operators Reveal How Concession Agreements is now being Reviewed Every 6-Months

By DAPO OLAWUNI

Inundated with series of complaints on the delay in container deposit refunds by shipping companies Nigeria, the Nigerian Shippers Council has announced that it is contracting the services of a company (names undisclosed) which would now
underwrite the refund of container deposits.

Also disturnrd by the hesitancy of Shipping Lines to send imported containers to Inland Container Depots scattered arround the country, thereby rendering these facilties useless, the Shippers Council said that it has proposed a bill; The carriage of goods by Land, See, and Rail to the National Assembly which would ultimately address the challenges.

This was disclosed by the Executive Secretary, Nigerian Shippers Council, Barr Pius Ukeyima Akutah at the 2024 Seminar for Maritime Journalists with the theme: The Nigerian Shippers Council in Transition, Issues, Prospects and Challenges, held in Lagos on Wednesday.

Represented by the Director of Special Duties, Mr Mustapha Zubairu, the Shippers Council boss said “The bill has been sent to the National Assembly. So once that is done, it will certainly cure that hesitancy of shipping companies in sending cargoes to the dry ports as part of origin and destination”

While fielding questions from journalists, the Deputy Director ,Monitoring and Enforcement of the Council, Mr Sarumi Adesina however said that the reasons why most shipping lines refuse to stem containers to bonded terminals and dry ports is because they have suffered significant container losses in the recent past.

Speaking, Sarumi said “We have been inundated with a lot of complaints about container deposit refunds. The industry is full of shady deals, especially involving freight forwarders. They are not helping matters. Shippers who deposit money for containers often fail to have it refunded when they return containers.

“In recent times, this refunded money does not go back to the owner, and when the money is not refunded, the shipping line claims the container was not returned, container deposits are not paid back, and consignees are not returning containers. Many containers are even being converted into shops.

“In my area at Amuwo Odofin in Lagos, someone built a story building with containers. This is happening in Lagos, and we don’t know what might be happening in the North. This discourages companies from releasing containers to distant destinations.

“That is not to say Shippers’ Council is folding its arms. There is an initiative through an insurance company to underwrite the refund of container deposits. The idea is for consignees to pay a small service charge instead of the typical deposit, ensuring containers are returned to shipping companies within a specific timeframe.

“This would avoid the issue of unrefunded deposits and guarantee the return of containers. Shippers’ Council is exploring this concept and is at the stakeholder engagement stage. Very soon, we will engage stakeholders, including maritime journalists, to make inputs and give ideas.

“Once implemented, it will benefit all parties: shipping lines will have the assurance of container returns, and consignees will avoid large deposits with no guarantee of refunds. The only cost will be a minimal service charge, creating a win-win situation”

The 2024 Seminar for Journalists also served as a session for interaction and discussions. It was attended by critical stakeholders including the Cooperate Affaires Manager of SIFAX Group, Olumuyiwa Akanda who revealed that the Federal Government is renewing terminal operators concession agreement every six months.

Muyiwa said Port operators are not acting Illegally, “Ever since the expiration of the concession, there has been a six-month renewal that the port operators get. So after every six months, there is a renewal. So the port operators are not operating legally” he cleared.

In his opening remarks, facilitator of the Seminar and Chief Executive Officer of First Mediacon Network Limited, Sesan Onileimo said the Shippers Council Seminar for Maritime Journalists was a concept kickstarted nine years ago by the company in collaboration with the Nigerian Shippers Council.

According to him, the seminar has since become one of the Key Performance Indicators (KPI) of the PR Department of the Council.

Onileimo commended the Executive Secretary of the Shippers Council, Barr Pius Ukeyima Akutah for sustaining the Seminar which was initiated nine years ago.

“When the idea of a gathering that will be specifically convened for maritime journalists for this purpose, was first mooted about 9 years ago, it sounded very nice. Essentially because there had been no such thoughts in the past. And if there were, they were never activated.

“Today, we remember with deep appreciation, the-then Executive Secretary of the Nigerian Shippers’ Council; Barrister Hassan Bello and his Management, for believing in the need for capacity building and manpower development for maritime journalists.

“I recall with happiness, that my organisation had to defend the proposal. It was approved, and since then “The Annual Seminar for Maritime Journalists” has been warehoused in the NSC. And I have been the facilitator.

“So, every year, in the last 9 years, we gather like this to deliberate on a particular issue that is central or germane to the Nigerian maritime industry.

“We hereby register our thanks to the current management of NSC under Barrister Pius Ukeyimah Akutah for not scuttling the project” he said