Extortion and Unfair Shipping Practices, Court Orders Arrest of MSC Vessels in Nigeria.

EconomyExtortion and Unfair Shipping Practices, Court Orders Arrest of MSC Vessels in Nigeria.

A Federal High Court, sitting in Port Harcourt, has ordered the arrest of MSC TASMANIA, a container vessel belonging to MSC Shipping, for breach of contract, extortion and unfair trade practices, in a suit brought by a Nigerian company, INTERGLOBAL.
Available court documents reveal that INTERGLOBAL suffered serious reputational damage, which tarnished it’s stellar image, due to long delays, which the equipment it ordered from China suffered in various West African ports, before arriving very late. To save it’s reputation as a leading construction company, it had to hire equipment, at very exhorbitant cost, to ensure the delivery of various projects on time.

According to the court documents, MSC refused to disclose cost of demurrage on its website, as well as other vague and opaque charges it levied, causing the company to suffer huge charges.

Court sources disclosed that MSC extorted over 49 million (Forty Nine Million Naira) from INTERGLOBAL through unsavory practices like seizing and detaining unrelated shipments of it’s clients, a practice which contravenes the FCCPC Act.

With an annual turnover of over 80 billion Euros, MSC uses it’s size to intimidate and extort Nigerian Companies, as well as defying regulators.

The fate of INTERGLOBAL is not an isolated case. It is one in a pattern of serial abuses of the Nigerian and international Maritime laws. Our investigations reveal that several Nigerian Companies and importers, have continued to accused MSC Shipping of arbitrary, inconsistent and opaque charges, illegal detention of shipments, extortion, and unfair practices. Other allegations include, Delay in delivery of the shipments, Illegal detention and blockage of the shipment, , Unfair shipping practices and Infractions of the Federal Competition and Consumer Protection Act 2018.

Investigations revealed that sometime In May 28, 2021, Importers and clearing agents, under the auspices of Nigerian Association of Government Approved Freight Forwarders and Association of Nigerian Licensed Customs Agents, threatened to stop shipping consignments into Nigeria through MSC Shipping Line over allegations of container deposit scams allegedly being perpetuated by officials of the company in Nigeria.
The Importers and clearing agents disclosed that MSC Nigeria Limited, collects container deposits from freight forwarders and licensed customs agents acting on behalf of the importers, but they fail to refund the money after the container has been returned.

Other complaints against MSC Shipping include Excessive Shipping Charges. Our investigations revealed that on December 10, 2024, Three Nigerians, Ms. Liman Okpeku, Francis Francis and Maureen Akinbobola on behalf of themselves and other agents, petitioned MSC to the ICPC for excessive charges, alleging that MSC extort TELEX CHARGES from importers and agents. This they contend is unlawful and ought not to be collected at both Port of loading and point of discharge

Alleging rip off through demurrage, Importers and agents accuse MSC of perfecting the Act of Rip offs, thorough Demurrage caused by delibrate delays by MSC to deliver goods, for which they have been paid. Other rip offs include additional terminal and shipping bills.

Investigations also disclosed that a Nigerian company, ADAVURUKY LOGISTICS LINKS paid MSC, several thousands as demurrage over delay caused by MSC and a Terminal Operator. Also JOKBEMI NIGERIA LIMITED, alleged that it paid MSC several thousands for delays caused by MSC.

Maritime industry stakeholders noted that these sharp and unwholesome practices have been going on for years to the detriment of importers in particular and Nigerians at large. They disclosed that MSC’s unfair practices has a way of skyrocketing the prices of goods and services in Nigeria.

A legal practitioner who pleaded anonymity disclosed that MSC’s actions offend several provisions of the Federal Competition and Consumer Protection Act 2018 which applies to services rendered by any company in Nigeria. For instance, MSC’s opaque handling of D & D charges and DRV rates is contrary to the provisions of section 115 of the Federal Competition and Consumer Protection Act 2018 (‘FCCPA’) which requires the disclosure of prices of any goods and services. The D & D charges and DRV rates are equally contrary to section 127 of the FCCPA which prohibits manifestly unfair, unreasonable and unfair prices. Further, the detention of the shipment for the purpose of enforcing payment in an unrelated transaction is wrong and contrary to section 124 of the FCCPA which expressly prohibits the use of coercion, pressure, undue influence and unconscionable tactics in demanding and collecting payment for any commercial transaction in Nigeria. This is more so when the payment sought to be enforced is disputed. MSC’s action infringe several other provisions of the FCCPA.

An industry sources disclosed that MSC has scant regards for Nigeria and for Nigerian based businesses, because they believe they can buy everybody, given that they are well connected. Industry sources accuse MSC of taking Nigeria and Nigerians for a ride, as it boasts that it has a monopoly of the Nigerian Shipping Industry and is therefore untouchable.

However the arrest of MSC TASMANIA, may have sparked renewed interest on the part of other victims of MSC, to come and challenge the shipping giant.

Sources hinted that MSC may have been making moves for adjudication of it’s matter with INTERGLOBAL in London, United Kingdom, inspire of the fact that the matter originated in Nigeria..

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