ICNL to pay over N110m loss to beans exporter after Shipper’s Council intervention

by Samson Echenim
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Following the intervention of the Nigerian Shipper’s Council (NSC) in a matter over damaged cowpea export to Dubai, the Inland Container Terminal Nigeria Limited (ICNL) is billed to pay no less than N110.3 million to the exporter as loss incured.

The beans export cost a total of N157.6 million. In resolving the matter, the NSC ruled that ICNL would pay 70% of the cost of the export, while the exporter bears the remaining cost of 30%.

The Nigerian Economy gathered that the NSC had intervened in a complaint by an exporter, USBAB Multichoice Limited, who exported two containers of Black Eye Beans to Jebel Ali Port, Dubai, United Arab Emirate from Kaduna Inland Dry Port ( KIDP) managed by ICNL.

However, the beans export was damaged before reaching the destination port and was subsequently rejected by the importer.

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The exporter, USBAB attributed the damage to delay at the Kaduna dry port allegedly caused by ICNL which is the forwarding agent and Maersk Nigeria Limited, the carrier. But the Shippers Council exonerated the carrier.

In a letter of complaint received via the cocouncil’s Port Office, Kaduna, the Managing Director of USBAB Multichoice Limited, Usman Baba Ahmad stated that two export containers of Cowpea Black Eye Beans were damaged. He put the value of the beans at $104,111 (N156.16 million at N1,500) while the total terminal and documentation cost was N1.65 million, making a total of N157.7 million.

The exporter identified delay by ICNL and the shipping line as being responsible for the damage and requested NSC’s intervention for refund of the loss. USBAB added that “if the cargo was shipped on schedule, having paid all necessary charges to ICNL from the beginning of the transaction, the damage would have been averted.”

The exporter further gave a breakdown of what transpired from when the cargo was forwarded to ICNL to when it was eventually shipped out of Nigeria. The complainant also denied receiving any notification from either FPIS or ICNL on recommendation that fumigation should be repeated after expiration of 21 days as contained on the certificate of Quality, Fumigation, Good Packaging Materials and weight . The company further presented additional claims received from the importer in Dubai and other documents. The complainant requested the assistance of the Nigerian Shippers’ Council in recovering all funds spent on the beans and the export processes.

It was learnt that the Nigerian Shippers’ Council held tripartite meetings at the Kaduna Port Office where all relevant parties; USBAB Multi Choice Ltd
( Complainant) , Kaduna Inland Dry Port/ ICNL ( Forwarder) , Federal Produce Inspection service ( FPIS), Anglia International Services Ltd ( Pre- shipment Agent) and Shippers’ Council’s Complaints Team from the head office were in attendance to amicably resolved the lingering complaint.

The chairman of the meeting and Deputy Director, Kaduna Port Office, Mr. Paul Garnva welcomed all parties to the meeting and informed that Kaduna Port Office regulates the Dry Port and protects shippers in terms of cost, effective and efficient service delivery. He noted that since the commencement of operations, over 16,000 TEU’s import containers had been cleared, while over 50 TEU’s export containers were handled. He added that the essence of the meeting was to dialogue with a view to arriving at fair and amicable resolution.

The head of complaints Unit, Mr. Daniel Orume,a Deputy Director, accompanied by an Assistant Director, (complaints), Mr. Danjuma Buba and Mr. Hassan Aminu, a principal Operations Officer, stated that this intervention was crucial, being the first to be held at Kaduna Port Office.

He said in line with NSC ‘s Port Economic Regulation Order, 2015, the Complaints Unit is saddled with the responsibility to find solutions to issues relating to disputes between providers and consumers of shipping services in the industry. He stressed that for the council to carry out investigation and reach necessary resolutions, it relied on documents presented by all parties.

He pointed out that from the Nigeria Drugs Law Enforcement Agency ( NDLEA), the containers were put on hold for almost one month. On ICNL’s counter submission that they were informed late by MAERSK Nigeria, the council sought empirical evidence to authenticate when both MAERSK and NDLEA informed the Terminal as well as when they engaged NDLEA for the release of the containers.

The council further sought clarification from FPIS, statutorily responsible for issuance of certificate of Quality, Fumigation, Good Packaging Materials and Weight, and explanation on which of the agencies in the export clearance chain is in charge of moisture owing to the fact that the space for moisture content of commodity on the certificate was blank. The Council also raised issues such as; delay in trying to correct the Bill of Lading of the damaged cargo; sought to know from the pre-shipment Agent, the type of container most suitable for export of agricultural produce; and who is to advise on packaging of all export cargoes.

Responding, the representatives of Anglia International Services Ltd, the pre- shipment Agent, Messrs. Bodam Sammy and Hyacinth Louis C. informed the meeting that “they received the beans and inspected in line with their mandate.”

 

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The Nigerian Economy

The Economy is an online newspaper focusing on delivery of top-notch economic, financial and business intelligence reports for economic development. It is published by Samhapp Integrated Services Ltd., 1, Ojogiwa Street (1st floor) Off Idumagbo Avenue, Lagos Island, Lagos State, Nigeria, West Africa

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