The Nigerian Shippers’ Council (NSC) has expressed worry over the growing issue of container mismanagement in the country, which has led to significant losses for shipping companies and consignees.

The Deputy Director of Monitoring and Enforcement at the NSC, Sarumi Jelili Adesina, revealed this at the 2024 yearly seminar for maritime journalists organised by First Mediacom Network Limited and the Nigerian Shippers’ Council (NSC) in Lagos.

Highlighting the extent of the problem, Adesina noted that many containers are being converted into shops and even used for construction.

Adesina outlined how shady practices in the industry, particularly among freight forwarders, have compounded the problem.

According to him, most shipping companies have suffered significant container losses recently adding that deposits made by shippers for containers are often not refunded, and consignees frequently fail to return the containers.

He said this has discouraged shipping lines from releasing containers to consumers’ destinations.
“In some areas, like Amuwo in Lagos, containers have been turned into story buildings. This practice undermines trust and efficiency in the industry, making it difficult for shipping lines to operate effectively,” he added.

Adesina said to address this, the NSC is exploring an innovative insurance-backed solution to mitigate container deposit disputes.

According to Adesina, the proposal involves a service charge system facilitated by an insurance company.

He explained that this initiative would replace the current model, where consignees are required to pay large refundable deposits, often ranging between N200,000 and N400,000.

Adesina also confirmed that under the proposed system, consignees would pay a nominal service fee to the insurance company, which would underwrite the container’s return to the shipping line.

He said this guarantees that containers are returned within a stipulated time frame, alleviating financial pressures on consignees while ensuring shipping companies recover their assets.

Adesina further explained that NSC is in the stakeholder engagement phase of the initiative and plans to involve industry players in refining the proposal.

“Once the concept is finalised and adopted, it will benefit all parties involved, reducing financial losses and ensuring the smooth flow of trade,” Adesina assured.

Also speaking, the Director of Special Duties, NSC, Mustapha Zubairu, raised concerns about the reluctance of shipping lines to transport imported containers to Inland Container Depots (ICDs) across the country.

Zubairu revealed that the Shippers’ Council has proposed a new bill titled, “The Carriage of Goods by Land, Sea, and Rail” to address these ongoing challenges.

He explained that the bill has already been submitted to the National Assembly and is expected to provide a framework for improving coordination between shipping lines and port operators, as well as enhancing the utilisation of dry ports across the country.

Zubairu further noted that once the bill is passed, it will tackle the hesitation of shipping companies to extend their services to inland destinations, a practice that has left many dry ports underutilised.