Shippers’ Council Recovers N58.4bn From Demurrage, Legal Cases, Fines

The Nigerian Shippers’ Council (NSC), has saved the nation’s economy a whooping N58.4 billion through intervention in legal cases, vessel demurrage and fines imposed on truck owners by the Presidential Standing Task Team (PSTT), between 2021 to 2023.

In a document presented to the members of the House of Representatives Committee on Shipping Service last week, the executive secretary of the council, Pius Ukeyima Akutah, said from March, 2023 till date, over 95 per cent of vessels that called at Nigerian ports and terminals left without any incident.

According to the Council’s boss in the document made available to LEADERSHIP, also disclosed that total amount saved and recovered through complaints handling over a period of five  years was N6.14 billion.

“The Council in its role as the lead agency in the implementation of the NPPM, sanitised the activities related to Joint Boarding of Vessel, Joint Cargo Examination and Operation Free-the-Corridor Programme.

“Due to the intervention of the Council’s led Port Standing Task Team (PSTT) and in compliance with Joint Cargo Examination exercise by all government agencies involved in cargo clearance, there has been an increase in the number of cargoes examined per day from 120 to an average of 230 boxes daily per terminal. More than 95 per cent of vessels that called at Nigerian ports and terminals left without incident from March to date.

“The total amount saved through intervention in legal cases, PSTT Vessel Demurrage Savings and PSTT fines is N58.42 billion.

“A breakdown of the monies saved from interventions in legal cases and out-of-court settlements showed that the Council saved N49 billion in three years. For PSTT vessel demurrage savings, the Council saved N2.76 billion in 2021; N3.18 billion in 2022, and N3.18 billion in 2023, totaling N9.12 billion.

“In the area of fines, the PSTT slammed N1.02 million on errant operators during its Operation Free the Port Corridor between 2021 and 2023. Also, intervention in Legal Cases Out of Court Settlements, PSTT (Vessel demurrage savings an average among others.”

“The Council receives complaints from regulated service providers and users through the Port Service Support Portal (PSSP). The complaints include arbitrary charges, container deposit refund, import and export fraud. The total amount saved & recovered through complaints handling over a period of five years N6.14billion,” he stated.

Tbe Shippers’ Council boss further disclosed that N33.1billion was saved through the confirmation of reasonableness of demurrage, freight rate, and charter party.

Akutah, further stated that between 2019 and 2023, the NSC recovered N6.13billion from issues bordering on arbitrary charges, container deposit refunds, and import and export fraud.

 “As a result of the confirmation of reasonableness of freight, charter party, and demurrage remittances, the Nigerian Shippers Council (NSC) has been able to reduce the level of capital flight out of the country. The total amount saved through the confirmation of reasonableness of demurrage, freight rate, and charter party is N33.12 billon.

“A breakdown of the savings revealed that N29.86 billion was saved from confirmation of the reasonableness of the demurrage fee, while N3.20 billion was saved from the reasonableness of Charter Party fees. In the area of confirmation of reasonableness of freight rates, the Council saved N50.01 million between 2019 and 2023, making up a total of N33.11 billion saved from confirmation of demurrage, freight rate, and charter party in the period under study,” the document stated.