By Steve Agbota
The Nigerian Shippers’ Council (NSC) has directed Inland Container Nigeria Limited (ICNL) to cover 70 percent of a $72,777 liability following a dispute over damaged beans intended for export.
The directive comes as a resolution to a complaint involving two containers of black-eye beans that were shipped from Kaduna Inland Dry Port (KIDP) by USBAB Multi Choice Limited to Jebel Ali port, Dubai, United Arab Emirates. The beans, unfortunately, arrived damaged, sparking a dispute between the exporter and the terminal operator.
USBAB Multi Choice Limited, the exporter, attributed the damage to delays allegedly caused by the inland port terminal, ICNL, and the shipping line, Maersk Nigeria Limited. In a complaint letter received by the NSC’s port office in Kaduna, Usman Baba Ahmad, Managing Director of USBAB Multi Choice Limited, detailed the damage to the export containers, valuing the lost beans at $104,111.75. The total terminal and documentation costs amounted to N1,653,205.88, with the exporter blaming the delay on ICNL and Maersk Line, requesting the NSC’s intervention to recover the losses incurred. “If the cargo had been shipped on schedule, given that all necessary charges were paid to ICNL at the onset, the damage could have been avoided,” USBAB stated.
The exporter also claimed that no notification was received from either the Federal Produce Inspection Agency (FPIS) or ICNL regarding the need for repeated fumigation after 21 days, as specified in the certificate of quality, fumigation, good packaging materials, and weight.
In response to the complaint, the NSC facilitated tripartite meetings at its Kaduna Port Office, bringing together all relevant parties: USBAB Multi Choice Limited, Kaduna Inland Dry Port/ICNL, FPIS, Anglia International Services Ltd (pre-shipment agent), and the NSC Complaints team, to resolve the issue amicably.
Paul Garnva, the Deputy Director of the Kaduna Port Office and chairman of the meeting, welcomed all parties, emphasizing that the NSC’s role is to regulate the dry port and protect shippers in terms of cost-effective and efficient service delivery. He noted that since the port’s operations commenced, over 16,000 TEUs of import containers have been cleared, with over 50 TEUs of export containers handled.
During the investigation, the NSC observed that the National Drug Law Enforcement Agency (NDLEA) delayed the release of the containers for almost a month. The Council sought concrete evidence regarding when Maersk Line and the NDLEA informed ICNL about the containers’ status and when they engaged with the NDLEA to facilitate the release.
The FPIS also clarified its role in the export clearance process, particularly concerning moisture content, which was left blank on the certificate. The Council further questioned the delays in correcting the Bill of Lading for the damaged cargo and sought input from the pre-shipment agent on the most suitable containers for agricultural exports and the necessary packaging guidelines for all export cargoes.
Representatives from Anglia International Services Ltd, the pre-shipment agent, assured that they had fulfilled their responsibilities, including verifying that the documentation matched the goods declared by the exporter, ensuring compliance with the Nigeria Export Supervision Scheme (NESS) fee, and submitting reports for the issuance of a Clean Certificate of Inspection (CCI). They affirmed that the beans had undergone a thorough inspection, with no disparities found.
FPIS representative Usman Suleiman confirmed that he had inspected the beans, found them to be of exportable quality, and certified them as such. He also mentioned that during the stuffing process, he raised concerns about improper dressing of the containers, but ICNL responded that the containers would not remain at the terminal for long.
ICNL, represented by Rotimi O. and Salami O. Rasaq, stated that they received the cargo at the Kaduna Inland Dry Port and transported it to Apapa Port, Lagos, within 15 days. They further explained that the exporter had completed the necessary documentation after the beans arrived at KIDP. However, due to Maersk Line’s policy, which only allowed port access on specific days, the containers could not enter the port immediately upon arrival in Lagos.
ICNL also pointed out that the NDLEA significantly delayed the containers and that neither Maersk Line nor the NDLEA informed them promptly, causing the consignment to miss two scheduled vessels.
After carefully reviewing the documents presented during the tripartite meetings, legal advice from the Council’s Directorate of Legal Services, and the roles both parties played in the transaction, the NSC resolved that the liability should be shared. ICNL, as the appointed terminal operator and forwarder, is responsible for 70 percent of the liability, amounting to $72,777, while the exporter, USBAB Multi Choice Limited, bears 30 percent of the liability for not following expert advice on properly preserving the beans to prevent damage.
While both parties expressed gratitude for the Council’s intervention, ICNL requested a review of the liability-sharing formula.