NSC Brokers Truce Between PIL and Unilever Nig. Ltd, Directs Consignee to Pay Outstanding Demurrages

The Nigerian Shippers’ Council has intervened in the business dispute between the PIL Shipping Company and Unilever Nigeria Limited over the seizure of the consignee’s consignments for non-payment of 4 – year outstanding demurrage to the shipping company recently in Lagos.

In a complaint letter to the Council by the Unilever Procurement Operations Director Mr. Thomas Mwanza, titled ‘Seizure of Unilever Shipment by PIL Shipping Company”, the Council summoned all parties involved for a tripartite meeting with a view to resolving the issue in line with the Industry Standard.

After extensive queries and analysis on the complaints by the Council, the meeting resolved that the cargo be released to the consignee, while the parties should also explore fresh mediation process on how to resolve current differences of accrued demurrages owed the shipping company by the complainant (Unilever Nig. Ltd), from year 2016 -2019.

The meeting further resolved that all accumulated demurrages of year 2016/2017 (₦621,095) and 2019 (₦3,251,277.05), be paid in full by Unilever to PIL Shipping Company. While the consignee however requested via the Council 75% waiver on the demurrage for year 2018 (N9,037,787.00) for the shipping company due to Apapa gridlock at that time, but the Managing Director of PIL Shipping Company Mr. Jack Langrishe informed the meeting that their Principal could only grant a waiver of only 20% as against the 75% requested by the Unilever Nig. Ltd.

The parties at the mediation meeting were grateful to the Council over the successful intervention.