The National Compliance Joint Taskforce of Licensed Clearing Agents (NCJTFLCA) has accused shipping companies of persistently extorting importers and their agents.
In a telephone interview with The Prestige Blended Magazine over the weekend, the group’s President, Dr. Basil Chudi Nwolisa, expressed deep concern over what he described as the impunity and high-handedness that have come to define the operations of shipping companies in Nigeria. He stated that these unethical practices have become increasingly alarming and are no longer acceptable.
Dr. Nwolisa urged shipping companies to put an end to all unprofessional conduct, particularly the exploitation of importers and their agents. He warned that such actions would no longer be tolerated, stating, “We have been taken for fools for too long, to the extent that these companies now see us as people who lack knowledge of the industry. This is 2025, and the NCJTFLCA will no longer allow them to operate without accountability. If the Nigerian Shippers’ Council fails to fulfill its duty as the Ports Economic Regulator by enforcing professionalism and compliance, we will not sit idly by and watch them drain us financially.”
He further criticized the practice of charging demurrage on consignments still held in terminals and warehouses operated by third-party terminal operators, describing it as “the worst form of extortion in global cargo business history.”
“Most of these shipping companies are merely agents to vessel owners, yet they continue to impose unjustified charges. How can they demand demurrage fees on shipments still in the custody of terminal operators? This is an outright violation of industry standards and must be stopped,” he asserted.
According to Dr. Nwolisa, it is disheartening that the Nigerian Ports Authority (NPA) and the Nigerian Shippers’ Council (NSC) continue to turn a blind eye to this reckless exploitation.
He emphasized that shipping companies are not entitled to collect demurrage charges on cargo stored in terminal operators’ facilities, highlighting key reasons why such charges are unjustifiable:
- Charging both the shipping company and the terminal operator for demurrage on the same consignment amounts to double billing, which is grossly unfair to the consignee.
- The contractual agreement between a shipping company and a consignee typically outlines the liabilities for demurrage charges. Once a shipping company has transferred a container to a terminal operator, it no longer has the right to collect such fees.
- Terminal operators have their own tariff structures and agreements with consignees, covering storage and potential demurrage charges. If a terminal operator is already billing for demurrage, the shipping company has no legitimate claim to do the same.
Dr. Nwolisa acknowledged that there are exceptional cases where a shipping company might have grounds to claim demurrage fees, such as:
- Specific Contractual Provisions – If the agreement between the consignee and the shipping company explicitly states that the latter can charge demurrage even when the cargo is in terminal custody.
- Terminal Operator’s Failure – If the terminal operator fails to provide adequate storage or services, causing additional costs or delays, the shipping company may have a basis for claiming demurrage.
However, he reiterated that, as a general rule, shipping companies should not collect demurrage charges on cargo held by terminal operators, as this constitutes unlawful double billing and extortion. He stressed that only in rare and well-defined contractual situations could such charges be justified.