COVID-19/Ports: Shipping Companies to Comply with Shippers’ Council Directive to Suspend Demurrage Charges
By Onyinye Apeh
Shipping companies have indicated readiness to comply with the directive by the Nigerian Shippers’ Council (NSC) to suspend demurrage charges on goods whose importers have been encountering difficulties in clearing at the ports 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.
Among the shipping companies are Ports & Terminal Multiservices Ltd (PTML) and Five Star Logistics Ltd.
Sources said the managements of PTML and Five Star Logistics had as at Saturday all expressed readiness to suspend demurrage charges as directed by the Shippers Council.
There are other shipping companies which SHIPPING DAY gathered have indicated willingness to suspend the demurrage charges as directed by the ports economic regulator.
The ports economic regulator had directed that the suspension of the demurrage would take effect from March 30 and will strictly apply to cargo that was discharged at the terminals from the 30th of March 2020.
The Council had explained that the suspension of the demurrage charges by the shipping companies at such a critical period was an incentive for owners of cargo to accelerate the process of taking delivery of their cargo.
The Council had also warned that the suspension of demurrage charges should not be used as an excuse by shippers and their customs agents 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”
The Council had offered to provide bus services for customs agents who will be clearing their goods at the ports during this period of restrictions in Lagos as announced by the federal government to check the spread of coronavirus.
The federal government has listed ports services as among the essential services which are exempted from the restriction announced by President Muhammadu Buhari over three weeks ago.
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