Sometime in September 2013, the Nigerian Shippers’ Council, apparently acting on allegations leveled against one of the terminal operators in Lagos, called for a meeting of the feuding parties. At the end of the meeting, the Council ordered that the Tin Can Island Container Terminal (TICT) should reverse some of its pricing policies which were said to be inimical to trade facilitation.
Sometime in September 2013, the Nigerian Shippers’ Council, apparently acting on allegations leveled against one of the terminal operators in Lagos, called for a meeting of the feuding parties. At the end of the meeting, the Council ordered that the Tin Can Island Container Terminal (TICT) should reverse some of its pricing policies which were said to be inimical to trade facilitation.
In a move that can only be explained as being akin to assuming the role of the much-expected regulator of commercial activities in the ports, the Shippers’ Council ordered that the upfront payment of storage charges should be stopped immediately, and that the TICT cargo examination period which hitherto takes nine days, should be reduced to zero waiting time.
Not done yet, the Council also directed that the transfer of containers from the TICT to it’s off- dock terminal must, henceforth be done with the full consent and notification of the consignee.
Instructively, the meeting was attended by parties to the dispute; namely: the Lagos Shippers’ Association represented by its then-General Secretary; Rev. Jonathan Nicole and the management of the TICT represented by its terminal Manager; Mr. Richard Akinbosotu.
Apparently determined to legitimize its action, the Executive Secretary of the Shippers’ Council, Barrister Hassan Bello had told those at the meeting that:"We are doing this in accordance with the law that set up the council, by trying to make sure these two sides understand each other. We are not macro managing the relationship between the two, but we are looking at the economy, we want faster clearance procedure, we want moderation in tariff, we want containers to be moved out as soon as possible from the terminal operators, we want cargo to be delivered to the shipper in good time with no damages and others complaint".
"We can use the sledge hammer if we want to, but there is no need for that at this material time", Bello had told the terminal operators.
The action against TICT is undoubtedly the closest the Council has been to ‘biting’ since its creation, even as just the protector of shippers’ interests. It is a known fact that it fought, albeit without success, the arbitrary imposition of charges by suppliers of shipping services, that is the multinational shipping lines.
The inability to call the shipping lines to order in the face of glaring arbitrariness rubbed the Council of the much-needed respect from members of the shipping community, even though it is known that its enabling law is devoid of any real powers to checkmate any of the players in the shipping chain.
Yes, all that has changed, at least since the emergence of a new chief executive officer who appear to be more purposeful, things have also largely changed with the new status of the Council as the commercial regulator of port activities.
In the performance of its statutory riles, the Council created the Shippers’ Complaint Unit and midwived the birth of the Inland Container Depots (ICDs) and Container Freight Stations (CFS). It has also been the ‘godfather’ of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN).
No doubt, its new role comes with a lot more challenges; the road is certainly laced with hurdles. Some of them were highlighted at the recent breakfast meeting which the council hosted.
Notable stakeholders who attended the meeting called attention to the deficiency in the Council’s staff profile, some expressed doubts as to the willpower of the Council to call sister government agencies, such as the NPA and the Customs to order. Others also cautioned against witch-hunting private sector players in the port system.
Perhaps, all these were captured by its former chief executive officer; Chief Adebayo Sarumi, when he urged the Council to do a ‘SWOT’ analysis of itself vis-a-vis the new role that has been entrusted upon it by the Federal Government.
The ‘strength’ of the Nigerian Shippers’ Council lies in the fact that it’s a repertoire of data on all players, it has details of all players, it also has a rich relationship with similar organisations in virtually all parts of Africa. It also has a general acceptability (for the new role) by all stakeholders. It can leverage on these to succeed.
Its ‘weakness’ is the possibility of carrying over its old role into the new status, by this we meant that, it may tilt towards favouring importers/exporters and freight forwarders, thereby, forgetting that as the commercial regulator, it must be an unbiased arbiter in disputes between providers and user of port services, including haulers, licensed customs agents concessionaires, government agencies, shipping lines/agents and a host of others. The fear of bias stems from the fact that, the Council will still be carrying out its primary role as ‘the protector’ of Nigerian shippers, while being the ‘regulator of all’. This calls for caution, so as not to be misunderstood, accused of bias and probably blackmailed by others who were not previously under its protection. It may also be challenged for lacking any legal backing; a daring stakeholder could test the legality of its authourity in court.
The greatest ‘opportunity’ for the Shippers’ Council in the new assignment lies in the fact that it has the support of both the government and all stakeholders. It also has a pedigree of credibility.
The most obvious ‘threat’ is the strength of the players, especially the government agencies, many of which have openly declared their readiness to cooperate. Some have asked and we also dare to ask: Can the Nigerian Shippers’ Council sanction NPA, Customs, or even NIMASA?
May be the transport minister was wrong to have told stakeholders at the breakfast meeting that, the Council only has one year to function in its new capacity.
To succeed, we think that, the Council should not be carried away by the ‘hands of friendship’ that stakeholders have extended to it. It must watch-out for the ‘banana peels’ represented by its sister agencies that it will have to arbitrate their cases. It should also watch out for the intrigues of powerful players like the port concessionaires, some of which are also closely linked with the shipping lines.
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