The Nigerian Shippers’ Council (NSC) recently presided over a tripartite mediation meeting to resolve a complex dispute involving Malik Bayero (the Shipper), TICT (the Terminal Operator), and Hapag-Lloyd Nigeria Shipping Ltd (the Carrier). The conflict centered on allegations of premature vessel loading and the subsequent accrual of high Destination Demurrage at the Port of Felixstowe, UK.
Following introductions, Dr. Ambi Bashir Mohammed, Head of the Complaints Unit, welcomed participants on behalf of the Executive Secretary/CEO of the Nigerian Shippers’ Council (NSC), Akutah Pius Ukeyima, Esq, MON, FCILT, Ph.D. He noted that the case pertains to the Consignee named in the Bill of Lading, in accordance with international shipping standards, and advised the claimant to prepare for cross-examination. He emphasized that the Council serves as the sole recognized Maritime/Commercial Shipping Dispute Resolution Desk under the Ministry of Marine and Blue Economy. Dr. Ambi subsequently delegated Yahaya Abdullahi Wachiko, an Operations Officer, to preside over the session as part of the Council’s ongoing mentoring initiative. The meeting took place at the Complaints Unit Meeting Room, Council Headquarters, Apapa GRA, Lagos.
Yahaya called for strict adherence to the rules of engagement and the Council’s Standard Operating Procedure (SOP). He emphasized that complainants (service providers or consumers) must remain accessible, provide accurate information, and support claims with authentic documentation for legitimate shipping transactions. He then invited Hassan Aminu, Assistant Chief Operation Officer (ACO) and case handler, to provide an overview.
Hassan informed the meeting that Malik Bayero (the Shipper/Exporter) alleged that a 1X20FT export container (UACU3500558) was processed and shipped from Tin Can Island Port (TCIP) to Felixstowe, UK, by Hapag-Lloyd Nigeria Shipping without complete documentation. Despite an alleged acknowledgment of the missing paperwork, the container was laden and exported.
Dr. Bashir Ambi inquired about the role of the terminal operator, TICT, and how they obtained the Customs Release/Notification required for loading. He urged Hapag-Lloyd to intervene regarding the accrued destination demurrage to facilitate cargo clearance and the eventual return of the equipment to Nigeria.
The complainant, Malik Bayero, supported by Agbaye Samuel (Book-By Party), stated that he had instructed his Freight Forwarder to retrieve the container because it was only partially filled with perishable goods. However, they discovered the container had already been shipped on board (SOB) without his knowledge or the submission of final Customs documents to Hapag-Lloyd. He claimed that at the time of loading, the Know Your Customer (KYC) and statutory documents, including the NXP (Nigerian Export Proceeds) form, CAC certificate, Tax ID, and Consignee’s letter of introduction, were still being processed. He further explained that the container remains uncleared in the UK due to exorbitant demurrage charges. While he proposed a six-month installment payment plan to Hapag-Lloyd UK to salvage the perishable cargo, the proposal was declined.
Olayemi Adeboyeku, Customer Service Manager for Hapag-Lloyd, clarified the timeline that:
- October 8, 2025: Shipment booked by Freight Forwarder, Mandela Castle.
- October 11, 2025: Container gated-in full at the terminal.
- October 16, 2025: Agent submitted the Electronic Shipping Instruction (eSI).
- November 15, 2025: Verified Gross Mass (VGM) updated.
- November 17, 2025: Container loaded onto the vessel Algeciras Express.
She explained that a shipment is planned once the SI and VGM are received, but loading (lifting) only occurs upon receipt of a Customs Release, which the terminal (TICT) provided to the Line. Regarding the missing documents, she clarified that these were internal KYC requirements (Consignee Tax ID) needed for invoicing at the destination, not the statutory Customs documents required for export. She noted that the exporter failed to pay local charges for the issuance of the Original Bill of Lading (OBL) or Sea Waybill (SWB) until after the cargo arrived at the destination. Although an SWB was eventually issued to expedite release, the Consignee failed to perform Customs clearance, leading to the accrual of demurrage.
Representing TICT, Lucky Madukwe, Aliga Chikezie, and Foluso Adeeso explained the current Customs Export Procedure. Since April 2024, the Nigeria Customs Service (NCS) centralized documentation at the Lillypond Export Terminal. Once Customs certifies the documents, they transmit a notification via email to the terminals. TICT acted upon this official Customs notification, assuming all regulatory criteria had been met by the Shipper, and shared this status with the Shipping Line to facilitate vessel planning.
Mrs. Juliana Obiageli Saka, Head of the Complaints Unit (Designate), observed that the challenges arose primarily from the negligence of the Freight Forwarders engaged by Malik Bayero. She noted that the exporter’s request to retrieve the container was not communicated to the Shipping Line or Customs in a timely manner. By the time the instruction was received, the terminal had already received the Customs Release and the cargo was already planned for loading.
Meeting Resolutions
After a review of the submissions, the meeting resolved as follows that:
1. For Confirmation of Transaction: The NSC affirmed that a valid export transaction occurred for the 1X20FT container, as confirmed by Hapag-Lloyd.
2. Carrier Compliance: The Council affirmed that Hapag-Lloyd acted within standard export procedures, having received the eSI and VGM from the Shipper’s agent and the Customs notification via TICT.
3. Agent Negligence: The Complainant, Malik Bayero, was not properly guided by his agents. The Council noted that the involvement of multiple third-party Freight Forwarders created a breakdown in communication.
4. Contributory Delay: The exporter’s failure to initiate a Return to Sender (RTS) request early, coupled with delays in settling local charges and the failed payment plan at the destination, exacerbated the demurrage.
5. Application for Waiver: Malik Bayero is to formally apply to Hapag-Lloyd for a waiver on accrued destination demurrage to allow the Line to negotiate with their UK office.
6. Trade Facilitation: The Council requested Hapag-Lloyd to consider “soft measures” or a concession on the demurrage to facilitate the clearance of the cargo and support export trade.
The Council closed the session by calling for bolstered Business to Business collaboration and unwavering adherence to IMO-mandated protocols and standard operating procedures (SOPs).
