The Nigerian Shippers’ Council (NSC) has intervened in a freight rate dispute between Exporter Kidon International Agency Limited and Freight Forwarding Firm Cardville Limited, arising from an export shipment handled via Maersk Line.
The intervention followed a formal complaint received by the Council on 24 July 2026. Kidon International alleged that it was initially quoted a contractual freight rate of $1,100 per container ($850 Ocean Freight plus $250 Booking/Service Charge), but was subsequently presented with a higher freight invoice after its Containers were loaded.
Kidon stated that it relied on the quotation provided by Cardville’s representatives, Mrs. Adesola Ogunbona and Mr. Smith Ahiu, when committing funds to the shipment. The Exporter further alleged that the $250 booking deposit per container was omitted from Maersk’s revised export invoice, resulting in a dispute over the additional freight liability.
Following preliminary investigations, the NSC Complaints Unit convened a tripartite mediation meeting which held at 3rd Floor, General Services Department Meeting Room, Council Headquarters in Lagos to establish the facts and resolve the dispute. Representing the Executive Secretary/CEO, Dr. Akutah Pius Ukeyima, Esq., MON, FCILT, the Head, Complaints Unit, Dr. Mrs. Juliana Obiageli Saka (participating virtually via Zoom), welcomed the Parties and delegated Mrs. Funmilola Afolabi, Assistant Chief Operations Officer (ACOO), to chair the proceedings.
In her opening remarks, Mrs. Afolabi noted the Complainant’s late arrival and called on all participants to maintain decorum. She emphasized that the Council’s intervention would be guided strictly by equity, documentary evidence, and the established facts.
The Case Handler, Mr. Vincent Ikechukwu, Principal Operations Officer (POO), summarized the complaint. He stated that Kidon was offered a freight rate of $1,100 per container ($850 Ocean Freight + $250 Booking/Service Charge) on 15 May 2026, but Cardville notified the exporter of a rate increase on 11 July 2026, after the containers were loaded. The case handler also noted that additional payments had been made to Cardville in connection with the shipment.
Presenting Kidon’s position, Mr. Chigozie Meshach Duru stated that initial freight terms discussed on 4 May 2026 were confirmed via WhatsApp messages and voice notes, leading to a booking on 15 May 2026. He noted that Cardville only communicated the rate increase in July, after the shipment was already underway. Mr. Duru added that upon contacting Maersk directly, the line indicated that the mid-year general rate increases (GRI) should not apply retroactively to May bookings. He maintained that any freight variance should be resolved between Cardville and the ocean carrier rather than transferred to the shipper.
In response, Mr. Smith Ahiu of Cardville Limited informed the meeting that the Exporter initially requested a booking to Haifa, Israel, noting that spot rates through other channels were as high as $1,850 per container. Cardville offered its service contract rate of $850 plus a $250 service fee ($1,100 total per container).
Mr. Ahiu explained that after a two-week delay at the origin port, the exporter requested a destination amendment (re-routing) to Ashdod, Israel. The amendment took three weeks to process due to Port congestion and operational constraints. The vessel eventually sailed on 14 July 2026, after which Maersk issued a revised invoice of approximately $1,400 per container. Cardville attributed the rate fluctuation to market volatility and geopolitical tensions around the Strait of Hormuz.
Cardville’s Chairman, Mr. Ilihu Eshet, (Deputy National President NAGAFF) added that service contract rates negotiated with ocean carriers are subject to strict validity windows and general rate adjustments (GRI/GRI peak season surcharges). He cited geopolitical tensions, including the Iran-US standoff and operational disputes between Maersk and APM Terminals (APMT), as contributing factors to the rate adjustments.
Ms. Asmau Bello, Senior Legal Officer (SLO), asked whether the validity period of the Ocean Rate was explicitly disclosed to the shipper. Cardville affirmed that the rate validity had been communicated via WhatsApp and that the revised Carrier rates were forwarded to the shipper two weeks after receipt.
Addressing the contractual structure, Mr. Musa Muhammad, Principal Legal Officer (PLO), outlined the legal requirements for a binding contract, including offer, acceptance, consideration, and certainty of terms. The meeting noted the absence of a formally executed written contract between both Parties. While Cardville characterized the engagement as an oral agreement, Kidon submitted its WhatsApp correspondence and voice notes as documentary evidence of the commercial terms.
The meeting also addressed the regulatory non-compliance of billing local shippers in foreign currency and raised concerns regarding Cardville’s operating status. Mr. Eshet acknowledged that Cardville was unaware of the mandatory Council registration requirements for Freight Forwarding entities.
Upon reviewing the financial records, the meeting established the following:
- The disputed $250 charge per container was paid to Cardville in Nigerian Naira at an agreed exchange rate of ₦1,380/$, totaling ₦345,000 per container (₦1,725,000 for the 5X 40FT Containers).
- Kidon had settled 70% of the agreed Freight Forwarding, Customs clearance, and FOB charges, leaving a 30% balance outstanding.
- Expediting Fees: A separate payment of ₦300,000 was made to Mrs. Adesola Ogunbona to expedite shipment processing.
Kidon requested that Cardville leverage its contract relationship with Maersk to apply for a freight waiver or commercial concession, or alternatively credit the $250 booking deposit against the freight variance. The shipper also requested relief for accrued demurrage and storage charges caused by documentation delays.
The Meeting Resolutions;
After reviewing the documentary evidence and hearing all submissions, the meeting reached thefollowing resolutions that:
- The meeting confirmed that an export transaction involving Five (5) Containers occurred between Kidon International Agency Limited and Cardville Limited.
- No formally executed, written service contract existed between both Parties for the shipment.
- There was inadequate and inconsistent communication regarding rate validity periods and surcharges prior to and during shipment execution.
- The initial agreed Freight Rate was $1,100 per Container ($850 Ocean Freight + $250 Service Charge).
- The $250 Booking charge per Container was fully paid to Cardville in Naira at ₦1,380/$ (₦345,000 per Container; ₦1,725,000 total for 5 Containers).
- Kidon International Agency Limited has already paid the revised Ocean Freight rate directly into Maersk Line’s account for all Five Containers based on the rate applicable at the Vessel’s departure (14 July 2026).
- Cardville Limited is advised to engage Maersk Line to seek a waiver or commercial concession on the extra freight charges on compassionate grounds, keeping the NSC updated on progress.
- Cardville’s claim of ₦990,000 for outstanding forwarding fees shall be settled in accordance with the agreed 70:30 payment structure, with both Parties reconciling the account based on direct Carrier payments already made.
- Cardville Limited is directed to ensure the immediate release of the Ocean Bills of Lading (BLs) from Maersk Line to Kidon International Agency Limited within 72 hours, taking into account the CY/CY (Container Yard to Container Yard) nature of the shipment. Any destination Port demurrage, storage, or detention charges resulting directly from delays in releasing the BLs shall be borne entirely by Cardville Limited.
- Cardville Limited is directed to immediately register with the Nigerian Shippers’ Council as a Regulated Freight Forwarding Operator in compliance with statutory provisions.
- Both parties are advised to maintain their commercial relationship while ensuring that all future shipments are governed by formal written contracts, transparent freight quotations, clearly defined rate validity windows, and written authorization for any supplemental charges.
