The Nigerian Shippers’ Council (NSC) recently resolved an Outstanding Equipment Liability dispute between Mr. Adewole Ola (the Complainant/Consignee) and Mediterranean Shipping Company Nigeria Limited (MSC Nigeria) concerning the detention of three Containers loaded with imported used vehicles.
The tripartite mediation meeting was held at the 3rd Floor, General Services Department Meeting Room. Council Headquarters, Apapa, Lagos, with representatives of both Parties in attendance. Representing the Executive Secretary/CEO, at the meeting was the Head, Complaints Unit, Dr. Bashir Ambi Mohammed, who welcomed participants to the meeting. He delegated
Mr.Okediya James, (NSC Operations Officer) to chair the session.
He subsequently requested Akorede Muyideen the Case Handler to present the details of the case brief.
Akorede informed the meeting that the Complainant alleged that MSC Nigeria had placed a lien on and detained three import Containers, namely MSBU7312528, MSBU7687680, and MEDU7922095, covered by Bills of Lading Nos. MEDURS252258, MEDURS245054, and the relevant shipping documents respectively.
The Containers formed part of a Consignment of imported used motor vehicles with an estimated market value of approximately ₦120 million.
According to the Complainant, MSC Nigeria withheld delivery of the Containers on the grounds of an alleged outstanding liability relating to Container MSCU5279698, which the Shipping Line claimed had remained unreturned since 2020. The Complainant further contended that no demand notice, invoice, reminder, correspondence, or formal communication concerning the alleged outstanding Container was issued to him between 2020 and 2026 despite maintaining an ongoing commercial relationship with MSC throughout the period.
Timothy Momodu represented MSC Nigeria, at the meeting, he explained that the Company had recently experienced a significant increase in Container losses and equipment-related claims, with more than 2,000 Containers reportedly remaining unaccounted for within its operational network.
MSC further informed the Council that Container MSCU5279698, covered by Bill of Lading No. MEDUMC565949, had remained outstanding for approximately 2,001 days. According to the carrier, the depreciated replacement value of the container was assessed at USD 3,000, while accumulated detention and demurrage liabilities associated with the equipment had exceeded ₦90 million.
Tomi Olagunju and Yemeni Oyeleke from Syllabus (Freight Forwarding Firm) represented the Complainant, they stated that neither Mr. Adewole Ola nor any of his agents received any notification, invoice, demand letter, detention notice, or correspondence from MSC regarding the allegedly outstanding container from 2020 until June 2026, when the new shipment arrived and was subsequently subjected to a Carrier’s lien.
Following a comprehensive review of the submissions of both parties, Bills of Lading, shipping records, operational documentation, and oral representations made during the mediation proceedings, the meeting reached the following findings and resolutions that:
- The Council established that a commercial transaction existed between Mr. Adewole (Complainant) Ola and MSC Nigeria involving Container MSCU5279698 covered by Bill of Lading No. MEDUMC565949.
- The Council confirmed that Container MSCU5279698 had originally been released by MSC Nigeria as an Import Full Container to the Consignee through Deogracia Maritime Support Services Nigeria Limited.
- The Council further noted that MSC Nigeria subsequently exercised a Carrier’s lien by placing a hold on the Consignee’s new shipment consisting of three 40ft Containers identified as MSBU7312528, MSBU7687680, and MEDU7922095.
- In the interest of trade facilitation, Cargo flow efficiency, and equitable dispute resolution, the Council directed that MSC Nigeria release the detained Containers upon fulfillment of the following conditions:
a. The Complainant shall deposit the sum of USD 3,000, representing the depreciated value of the outstanding Container.
b. The Complainant shall provide MSC Nigeria with a written Letter of Indemnity (LOI) indicating the proposed timeline for the return or resolution of the outstanding container obligation.
c. The Nigerian Shippers’ Council shall be copied on the Letter of Indemnity for monitoring and compliance purposes.
- The Council emphasized that any user of Shipping Services who fails to comply with lawful directives issued by the Council may be subjected to appropriate regulatory and industry sanctions in accordance with the economic regulatory powers of the Council.
- Having considered the documentary evidence presented, the longstanding business relationship between the Parties, and the absence of evidence indicating continuous demand or recovery efforts by the Carrier over the six-year period, the Council advised MSC Nigeria to waive all accumulated detention and demurrage charges associated with Container MSCU5279698. The Council noted that the Complainant had already been directed to deposit USD 3,000 as the depreciated value of the outstanding Container.
- The Complainant shall remain liable for all legitimate port, terminal, storage, shipping, and ancillary charges accruing on the newly imported shipment currently under detention.
- The Council advised Mr. Adewole Ola and all Stakeholders engaged in international trade and shipping activities to maintain proper custody of shipping documents, delivery records, equipment interchange receipts, and transaction records to facilitate efficient dispute resolution and prevent similar occurrences in the future.
- All Parties were strongly urged to comply fully with the resolutions reached during the mediation process in order to preserve commercial relationships, ensure uninterrupted Cargo movement, and promote efficiency within Nigeria’s maritime transport and logistics sector.
