Container deposit: Chamber accuses shipping companies of extortion

The Nigerian Chamber of Shipping (NCS), has accused shipping companies in Nigeria of extorting importers by demanding arbitrary container deposits from them. The chamber also said that shipping companies are contributing significantly to the inflation in the country by the introduction of the containers deposit.

President of the Chamber; Mr Andrew Isichei, who stated this recently while speaking with newsmen in Lagos, also said that the kind of deposit these shipping companies request from Nigeria importers are very unfriendly.

He also said that the shipping companies have a way of receiving the containers back and at the end what they will refund back to the importer will be minimal. Isichei also accused shipping companies of delay in the refund of the container deposit to the importer.

According to the NCS President, “The truth is that shipping companies are exploiting Nigerians to improve their bottom line. The kind of deposit they request is very enormous and unfriendly to the survival of any country. And therefore they contribute to significant inflation in this country by the container deposit that they demand.

“They also use different tactics to receive the containers back so that they will be receiving more money and at the end of the day, whatever they give you; if any, is next to nothing. And when even you are entitled to it, they delay to give you that money. And if you are a business man, you are looking for profit, when you now compute the money, you will have to include the cost of container deposit. So, at the end of the day, the selling price will be higher, even when the ordinary man on the street will insist on buying things at a very low price.”

He also advocate the need for the government to introduce a strong regulatory agency to monitor the activities of these shipping lines.

“Those people are really cheating us. We need a strong regulatory agency, and thank God the Nigerian Shippers Council (NSC) is now made the economic regulator to put them in line. The Nigerian Shippers’ Council should scrap the container deposit. But because some Nigerians will collect the container and won’t return it again, there should be a balance between total scrapping and obnoxious exploitative rates being charged now for demurrage”, he argued.