In a move to uphold trade facilitation and ensure the seamless flow of international commerce, the Nigerian Shippers’ Council (NSC) recently brokered a resolution between Hapag-Lloyd Nigeria and Worddine Global Services Limited. The tripartite meeting, held at the Shippers’ Council Head Office in Apapa, addressed a critical dispute arising from a “Freight Collect” shipment to Iraq and the subsequent withholding of documents for a separate consignment destined for Poland.
The dispute originated from a 20ft container of Auto Spare Parts shipped by Worddine (as the booking party) to Sadaa al Batra in Iraq. Although the shipment was booked under Freight Collect terms, meaning the carrier is to collect freight charges from the consignee at the Port of Discharge (POD) before cargo release, the charges were never recovered in Iraq.
Consequently, Hapag-Lloyd imposed these charges on Worddine’s account in Nigeria and exercised a possessory lien by withholding the Original Bill of Lading (OBL) for a new, unrelated shipment belonging to CE Power Solutions Limited, which was due to arrive in Gdynia, Poland, within seven days.
Presiding over the meeting, Dr. Bashir Ambi, Head, Complaints Unit, emphasized the Council’s role as an unbiased umpire, strictly adhering to Standard Operating Procedures (SOP) and international shipping conventions.
During the session, several key technical points were clarified:
- Regulatory Conflict: Hapag-Lloyd’s representative, Mrs. Olayemi Adeboyeku, explained that Iraqi maritime regulations do not permit “Freight Collect” terms for certain commodities. This legal constraint automatically triggered a “reversion to origin,” flipping the freight invoice back to Nigeria for payment.
- Operational Oversight: Hapag-Lloyd acknowledged an internal lapse in releasing the cargo at the destination before securing payment, but maintained that the contractual obligation for freight ultimately rests with the booking party when the consignee defaults.
- Consignor’s Grievance: Mr. Paul Nwabunor, CEO of Worddine Global Services, argued that withholding documents for a third-party shipment (CE Power Solutions) constituted an unfair trade practice, asserting that the carrier failed to enforce the original terms of the Bill of Lading.
To prevent the imminent accrual of demurrage and detention charges on the Poland-bound shipment, the Assistant Chief Operations Officer, Mr. Aminu Hassan, proposed a strategic compromise. He suggested that Hapag-Lloyd release the urgent documents for the Gdynia shipment while maintaining a lien on other Worddine assets or future shipments.
“The goal is to ensure the Carrier recoups its revenue without strangling the exporter’s current operations,” the Council noted.
Meeting Resolutions
After thorough deliberations informed by a careful review of the documents and the parties’ submissions, the meeting reached the following resolutions that for:
- Affirmation of Service: The Nigerian Shippers’ Council (NSC) affirmed that CE Power Solutions Limited formally engaged the services of Worddine Global Services Limited to export its cargo to Poland.
- Clarification of Terms: The Council affirmed that while the initial terms were “Freight Collect,” the import regulations in Iraq necessitated that the freight charges be reverted to the origin (Nigeria) for settlement.
- Breach of Timeline: It was noted that Worddine deviated from its subsequent agreement with Hapag-Lloyd by failing to settle the outstanding freight charges within the agreed seven-day window.
- Immediate Document Release: The NSC urged Hapag-Lloyd to release the Original Bill of Lading for the new shipment (HLCUAPP260303860) belonging to CE Power within 24 hours to facilitate cargo processing at the destination.
- Right of Lien: Hapag-Lloyd is at liberty to place a lien on Bill of Lading No. HLCUAPP260303966 and any other shipment associated with Worddine until full payment of the outstanding freight charge on the Iraqi consignment (HLCUAPP251002550) is confirmed.
