……… Blamed the consignee for abandoning cargo, ask the carrier to review the claim.
‘ Customs, Nafdac & Quarantine ordered for destruction of the abandoned smelling box. “We spent over 41Million to Government “
……….Shipping Company
” We are grateful to Shippers’ Council “……Consignee
The Nigerian Shippers’ Council (NSC) recently played a pivotal role in amicably resolving a complaint lodged by Adilass & Sons Limited against Hapag Lloyd Shipping. The dispute arose from the destruction of Adilass & Sons Limited’s 1X40FT reefer container of Frozen Fish, shipped from Canada under Bill of Lading No: HLCUMTR240601031 and Container No: UACU4764072. The cargo was destroyed by government agencies at the APM Terminals, Apapa, Lagos.
In a swift response to the complaint, the NSC convened an urgent tripartite meeting to ascertain the facts, determine the cause of the destruction, and facilitate a resolution, including potential remediation or sanctions.
Dr. Bashir Ambi, Head, Complaints Unit, representing the Executive Secretary/CEO of the Nigerian Shippers’ Council, Akutah Pius Ukeyima, Esq, MON, FCILT, Ph.D., chaired the meeting and welcomed the involved parties to the mediation, emphasizing the application of Alternative Dispute Resolution (ADR) principles.
He requested Ms. Soniya Hassan Akinbode, the complaint handler, to provide an overview based on the submitted documents. She stated that Adilass and Sons Limited had formally complained about alleged negligence by Hapag Lloyd, which they believed led to the destruction of their Frozen Fish consignment without prior notification.
Mr. Innocent Oliseh, the Managing Director/CEO of Adilass Limited, representing the complainant, confirmed the accuracy of Ms. Akinbode’s summary. He elaborated that after the shipment’s arrival, they were engaged in finalizing the Pre-Arrival Assessment Report (PAAR) amendments with the Nigeria Customs Service, a process that took approximately three months. Subsequently, they received notification of the cargo’s destruction by the carrier.
Representing Hapag Lloyd Shipping, Ms. Waleola Folakemi explained that the Company had made several attempts to contact the Consignee using the registered email address on the Bill of Lading (lasisisadio@gmail.com) and a foreign mobile phone number also listed on the B/L, but without success. She highlighted that the provided contact information belonged to a third party named ” Salami ” in Cotonou, Republic of Benin. Ms. Folakemi confirmed that pre-arrival notices regarding the Estimated Time of Arrival (ETA) and Actual Time of Arrival (ATA) were sent to the email address specified on the Bill of Lading and presented documentary evidence to support this. She further stated that once cargo is abandoned at the port, the Nigeria Customs Service has the authority to determine the subsequent course of action. Hapag Lloyd indicated that the container remained uncleared for over 121 days, with no means of contacting the actual consignee based on the provided information.
Ms. Folakemi further detailed that APM Terminals issued an alert concerning a strong, offensive odor emanating from the reefer container. Consequently, the National Agency for Food and Drug Administration and Control (NAFDAC) and the National Agricultural Quarantine Service (NAQS) ordered its destruction due to the potential health risks to port users. She presented letters from both agencies:
A letter from the Nigeria Customs Service (Ref No: NCS/ENF/ABJ/032/S.15/V.VIII dated 24/12/2024) directed the handover of the container to NAFDAC for further action.
NAFDAC’s letter (Ref No: ENFD-8568/Vol. 26/499 dated 05/12/2024) confirmed the consignment as spoilt frozen fish, unfit for human consumption, and posing a public health hazard due to its stench. Citing Section 14 of the Food & Drugs Act CapF.32 LFN 2004, NAFDAC ordered the forfeiture and destruction of the product.
The National Agricultural Quarantine Service (NAQS) Apapa Command, in their letter (Ref No: NAQS/APP/061), also requested the urgent evacuation and destruction of the container due to the offensive odor and leakage of fluids, indicating infestation.
The Shipping Company disclosed that they incurred over 40 million naira (receipted) in government charges for the disposal of the cargo. As a gesture of goodwill and to retain the customer, they offered the consignee $25,000 as partial compensation for the loss.
In response, Mr. Oliseh attributed the spoilage to a suspected malfunction of the reefer container and rejected the $25,000 offer, stating that the cargo’s value was $62,500 as per the commercial invoice.
During the meeting, the Chairman questioned Mr. Oliseh about the identity of “Salami” and the reasons for abandoning the sensitive reefer container for over 121 days, especially considering the limited free days for cargo clearance. The absence of a clear explanation regarding their appointed agent further compounded the issue.
After extensive deliberations spanning over three hours, the Chairman summarized the following resolutions:
The meeting acknowledged that the 1X40FT container held Frozen Fish valued at $62,500, consistent with the commercial invoice.
It was confirmed that Hapag Lloyd consistently sent correspondences to the email address provided on the B/L (lasisisadio@gmail.com) without any response and attempted to contact an unreachable foreign phone number.
The meeting established that the container was positioned for inspection at the terminal with an expired Delivery Order and remained uncleared for 121 days.
The meeting validated the directives from the Nigeria Customs Service, NAFDAC, and NAQS for the destruction of the cargo due to its deteriorated state and potential health hazards. 5.The complainant declined Hapag Lloyd’s initial compensation offer of $16,000.
The NSC urged Hapag Lloyd Shipping to reconsider and increase their compensation offer to facilitate trade and ease of doing business in Nigeria.
Following a request to consult with their overseas principal, Hapag Lloyd agreed to an increased compensation offer of $30,000 at the Council’s intervention.
The Nigerian Shippers Council encouraged both parties to maintain their long-standing business relationship, noting the consignee’s 15-year history as a customer.
The Nigerian Shippers Council emphasized the importance of all importers and exporters providing valid and reliable contact information on their shipping documentation.
Both Adilass & Sons Limited and Hapag Lloyd Shipping expressed their satisfaction with the resolutions reached through the Nigerian Shippers’ Council’s intervention.
