Do you know that container deposits and demurrages charge will no longer exist beginning December 1 2018? What is container deposit? What gave rise to the suspension of container deposits and demurrages charge? How long will the suspension last? Thus, answers to these questions are the reason for this article. First, let’s begin with understanding of how container deposits work in Nigeria.
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WHAT ARE CONTAINER DEPOSITS?
Shipping companies demand container deposits from importers as a way of ensuring the return of empty containers. The importers receive refunds of deposit upon return of the empty containers and in good shape. So, the purpose of container deposits isn’t just to guarantee return of empty container, but to ensure containers are returned as is. Therefore, the importer or his representative clearing agent is expected to take pictures of the container before, during offloading, and after offloading so as to make accurate report.
Return of damaged container means that the importer will lose some the money so deposited, depending on the level of damage found. To avoid such lost, the importer is careful, and takes note of the container conditions as is.
HOW MUCH ARE CONTAINER DEPOSITS AND DEMURRAGE?
The amount deposited for containers depends on the size of container and the place of delivery. The following are amounts deposited for 40 feet and 20 feet containers within and outside Lagos for instance.
- Container deposit for 40 feet container within Lagos is NGN200,000.00
- Container deposit for 40 feet container outside Lagos is NGN400,000.00
- Automatic demurrage for a 40 feet container is NGN100,000.00
- Container deposit for 20 feet container within Lagos is NGN100,000.00
- Also, Container deposit for 20 feet container outside Lagos is NGN200,000.00
WHY THE SUSPENSION OF CONTAINER DEPOSITS ARRANGEMENT
The reasons for suspension of containers deposit arrangement are as follows:
- Measure is part recommendation from stakeholders to find lasting solution to the perennial gridlock in Apapa.
- To encourage shipping companies build holding bays scattered at the outskirt of the built up area to take their containers. This means aligning with international best practices.
- Equally, return of container deposit to importer is not as easy as said.
HOW LONG WILL THE SUSPENSION OF CONTAINERS DEPOSIT BE?
In the words of the Chairman of the Presidential Task-force on Apapa Gridlock, Commodore Okon Eyo, the shipping companies agreed to suspend collection of demurrage on empty containers for three months from December 1 to February 28, 2019.
Container deposits and demurrages charge are to be suspended in Nigeria, for at least 3 months period. The suspension time frame is from the December 1 2018 to February 2019. We look forward to complete cancellation of container deposit. Finally, To contact a clearing agent in Nigeria, please send us email or give a call.