COVID-19: Shippers Council Directs Shipping Coys to Suspend Demurrage Charges
*Orders refund of already collected demurrage charges to consignees
By Francis Ugwoke
The Nigerian Shippers’ Council (NSC) Friday directed shipping companies to suspend demurrage charges on goods at the ports in view of the difficulties which importers and their customs agents have been encountering in clearing them since the federal government announced a lockdown in Lagos, Ogun states and Abuja as part of the measures to check the spread of the ravaging coronavirus.
The suspension of the demurrage would take effect from 30th March 2020, and will strictly apply to cargo that was discharged at the terminals from the 30th of March.
“To this end, demurrage charges during this period should be refunded to the consignee or his authorized agent. Suspension of demurrage during this period is an incentive for owners of cargo to accelerate the process of taking delivery of their cargo”, the statement added.
The Council also warned that the suspension of demurrage charges should not be used as an excuse to delay or abandon cargo at the ports.
The council warned that erring shippers will be sanctioned in addition to having to pay the demurrage due on their cargoes.
The ports economic regulator in a statement signed by the Deputy Director, Public Relations, Mrs Rekiya Zubairu, explained that the directive to the shipping companies to suspend the demurrage charges was based on its experience on the difficulties being suffered by the importers and their agents while clearing their goods during this period of lockdown.
According to the Council, it has been monitoring activities to ensure that the seaports run efficiently and smoothly within the present circumstances in line with the presidential directive that port operations are essential services.
Part of the statement reads, “ During the daily monitoring exercise, it was observed that some shippers, through no fault of theirs, are unable to take delivery of their cargo because of lack of public transportation, inadequate banking services and limited service providers due to reduced workforce, etc”, the statement said.
“Based on the forgoing, Nigerian Shippers’ Council has directed shipping companies to suspend demurrage charges during the period of the COVID-19 lockdown with effect from 30th March 2020. This strictly applies to cargo that was discharged at the terminals from the 30th of March 2020”
Customs agents have been full of lamentations over the difficulties they encounter while trying to clear goods at the ports.
The Association of Nigerian Licensed Customs Agents (ANLCA) and its counterpart, National Association of Government Approved Freight Forwarders (NAGAFF) described their experience as horrible.
President of ANLCA, Iju Tony Nwabunike and NAGAFF President, Chief Increase Uche told SHIPPING DAY Thursday in a separate chat that the situation in which agents clear goods at the ports was very chaotic.
They also added that the worst aspect was that shipping companies and banks were not offering full services.
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