CARGO
DEFENCE
FUND
AND THE
CURRENT
CARGO
POLICIES
A PAPER
PRESENTED
AT THE
AWARENESS
SEMINAR
AT
BY MS A, N. OGO
THE ROYAL
TROPICANA
HOTEL,
KANO
ON
't zIH MARCH, 2OO2

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INTRODUCTION
At Niq€.idn Shippefs
Cosncilwe
hdve
d*cfib€d rhe Corgo
Defenc.Funddoch d of cifcuhstahce.
Th€ Fund
hos
b€eh sef
!p b€coBeofthe h€ed to tockle
p.oblzns
ossocioted
@ifh
dbandonhenf
of lzgirimote
corgo
Cloihs
successfully
The
Co.go
D€f€nc€ Fund
rherefo.e
s€€k3 too55Btth€ often ffusrfoteddnd
confu5€d
Ni9€ridn shippers
inrhei.pu15uil
of l€gdlremedies
ond
Theaoun. enbofk€don oseries
ofstudi6hdndled
by €xpert
coneoltqnts
to dsses
rhe pfoblems
fac€d byShipp€fs,find
our
why l€9 tihdr€ cld ns dfedbondoned,
delerh ie how
fo imD
€nenr
rh€ Fund
dnddlso
dce|roin the levelof
ossisrdnc€
to be g,veh
to
shipp€.s Th13
ihe council
wos
conv
nced
would
helPbos€
findings
on storisticol
doto ond ol50
idehTify
volnefdble
dr€os wh€f€
Nigerion
shiPp€rs hove
suffer.d gredresr
1055.
Th€ cduncilhos
been
chofged
Jo conside.
p.obleru
foced
by
Shippzrs
dnd
advise
gov€fhhent
on possib
e solutiohs,
promote
ondencoufogeth€
studydnd
r€safch into these
problens
ond

---

dlso
cdrryoutsuch
othzroctivities
6 o.e conduc've
to the
dischdnge
of iTs
funcrioB
und€f Th. Acr
IAAPLE'AENTATION
OF THE FIJND
The Findingsof
ih€ consultonts
that corried
outthe..sedrch
werc .r r colly
€rahihed dnd
bos€d on thzi. .econm€nddr
ons,
- h l
t h e k J 1 t ,
a g s t e ' a d 6 ' D a 1 1 r i " d a '
g L o a " t e P
compony
is knownos
TUEcAR6o
DEFENCE
FUND,
itqivesrh.
FundTh€ legd enrity
to op.rdre
indePend€nuy
dl Th.Counc
.
The F$d s .dministefed
dnd
nondg€d byo Bodrd
ol Trustees
represenr
n9 vorious
shippers
nl€r€srs dnd
The Fund
is
cohp.tey isoloted
from The ]\\ onogeh€nr
of Nig€rion shrpPers
'h? aour. Iho< -ddp dr n, ,or' 1or,d o' 'ou iol -o fiD fL.d
'5EFD
which
i3 descfibed
d
MONEy Tie ohticiPdrion
of Th€
Trusrzes
i5lhotwzwouldo b€ encdufdged
to.ontribure
ro rhe

---

STRUCTI]RE
AND AD/IAINISTRATION
OF THE FUND
'rie
The varioG
shiPPefs
interesrs
r'p'ese^|ed
dr the )ev' al
Boofd
of rrusre€s o.e th€ Insurdnce
Industv l\\o'irrme
Low
Pfoclice,
Mdnufdcrurers
Associdron
of Nige'o NAC'L A' Four
sedoned
shiPPes
f.om rhe fdur geo e'ondmc
zdn€s oi the
counrry,
The Mondging
D fector ond
two olher fepfaenrdirv'3
ffom Nigeridn
shipper5
council
rh'h
S|iIPPEASore.ncourdqedto.ontrbuJ€onrhebdsi5of
AssdciolloB,
becdGe
the idenrif
ied benef
iciories
ro The Fund
dre shiPP€fs reglstered
wth The counci,
dhe'Tlv
dr ndi'ectLv
rhrouqh
TheshiPPe.s
associotions
The Fund
moinrdEd ial dr
rh€ exisling
Shippefs'
assoc
aTio8,
wh ch o.e currenr
v obour
tuenty rh.ee sPr?od
d overN'9efid
CLAIMS
PROCESSING
AND DISBUASEMENTS
of cldinswould
be.€cu ved or dny or
Zona , ar Za^ol Ca otd)not nq Affi.es

---

Tnzneodof,re:s
o-o-"d
n L09o<o
4 Do
liof aDoP6
Ld9o5
and
The secreto.y
ohd
secrerdr
or of Thz Fond
is ocoted
dr th€
some
oddf6s For rhe pu.Pose
of co-ordindtion
of cloihs'
The
Fund
hds
wd.ked
out qn otrqng€n'nr with The coun'il5
ofticd ro
fece ve comPldint5
of clon3 PronPuvsin'€ in PrinciPe'o tlnihs
would
b€ pro.*sed bvThe s€c.etorior dhd
Pres€nted
befo'z
Id€hrifi€d .r€os of disbursenent
mov
include:
.
legd ossi3roncero
ShiPP€rsro
heP Prov€or e5tab <h
octual ds3
or domoge;
-
i o
o d 4 o < h i P P e - ( o / ? r ! i - r g o ' d l L o < - o ' A - b r r o i o l
pdym€nl for risk mohdgehenr
odvi3ory
se'v 'al
test cdszs
0r c ds dctLons:

---

TRU5TEE5
TER'AS
OF REFERENCE
In a suhndfy, The Tfu3t€€5 hove
been
ndnddted
to
Conjider
qnd
terla ald,rs,lo- o-do'.p
ei-h -he aLl6
of Proc€du.e
of Th€ Fund
Impfoveth€ resourc*of Th€ Fund,lnv4t
and
honoge
Initrate
ohd
provlde
arbilrduon
Prccedur€s
os oh
olteflotiv€ hethod
of D spute
R€solution;
IdenrifyPisk Fdced
by shiPP€Bthol dr€ nor cover€d
by regulor
insurdnce
polici4;
Cdrry
out such
oTheroctsThoT
of€ ne.essdry
ro run the
bGinds of The Fund
€fficienlry dnd
effective
yrqnd
Maihtoih
proper.€cords
dnd
dccount3
ofTheoctivities
of
The corgo
Defence
Fuhd,ohd
d.1w th uhdsrgood
fd'th
orolltim.s in relotioh
to hottersoffe.rng Tle Fundond
the lntefats of benefic
ories.

---

CLAIAAS
APPROVAL
PFOCED9RE
i)
WHOIs ENTITLED
TO EENEFITFROMTNE
FIJND
A reqistered
Nigefion
Ihporrer of ExPo.t.r
is
entitl€dro benefit
froh The Fund
50 for os h€ ne€ts
Tie ffiterio set duf by The Boqrd
of TrusT€4 ot
cdrgo
D€fence Fund Sen€ficio..s ndy includ€
'^drvduos
or p.vd1e lm'ted lidb/l
ry .onPdn
es A
beneficiory
hoy dpP
y hims€rf o. reqr8i o .9dl
procnt on€r of on dgenr
to oPPy
on hB beho
f ond
]D TO WHOM
5NOULDCLATMS
BE
ADDR€55Eb
cloins
should
beoddr*s€dTo The Monoqehenrof
Nigerioh
5h pPers
cduncil
or to fne secreraty
.f Ih?
Fund Cldihs
hosf be inwritihg.
aonrdiningthe
dote,
ploc€ond detois of irdnsdcr
ion
cous
nq loss
of damoge
ond
effods hade bycldimonror
shipPer
o renedvthe

---

iii) PARTICILAQSOFCLAIM
ol
Nonedhdoddress
of cdihonrond
drdny
rcpraenlot)ve
bl
NoJure,
plq.€ohd dot€ of lrdhsact
ion .d!s ihg
ross or ddmdg€
)
D-d'rs of
-bl
"oBo,
o d.op es o, !olr,d(ts
d)
Efforts hode rd renedyldssor ddmoqe.
e)
Anounr
ofctdin
f)
costs
df €fforrs ro fenedy
ross.
The Soordof
rruitees shottexefcise
dBcr€tionca rd who
nuy De
enntled
to ben€fitfroh The Fuid. poyn€hts of disbuBenems
noy cover costs, loss or dondge or o propatitdn or perce tase af
seruehenrs
shollbe
deohh
with promprlyahd
ih qccofdonce
wrth
rheAules
of Proc€dureof
Th€ Fund.
rh€ Trusr€es hove
sron€o
workon
o cLAlrvls
i^ANUAL,which
ev.nruoltywdurd
be hqo€
ovdiloble
To shipp€rsdnd
rheir reprdeni.div* fo. guidonc€
on
noti€rs oifectihg
cdrgo
DeJ.hc€ Fund.

---

dt./TR€NT'AF6O POLTCIE5
i) INsTITUTE
CAR6O
CLAllsE
A'ORICC A'hos b.en
d€scribed
to covef
ollrisksof loss
of dahaq€ to Cdrgo
excludihg
where
rhe.e hos
be€n lo55
or dondge
ds o
rdult of willfulhisconduci
of theos5ured,
inherenr
vice,
insuff
icien.y
df pockdging
deloy,
unsedworth
n€55
of vess€1,
w.f3,stnkes
ond
lock
o(i
sohe Insumnce
componizr
f€cohh€nd this policy
fo.
finished
produds
which
could
be stoleh
inT.onsrsuch
05
electronics,
wris'rwdtches,.olculoto.s,
cohPut€r porrs,
textiles€r.. Thzpremium
usuollycould
be negorided
a ? p a . d ^ 9 a n 4 d 4 d - ' o r d - .
W i o , x o u d
b ' . o n p p o y o b p
depends
on rhe pdrriculor
Corgo
ahd
could.onqe
from45%
io 1.5%
of the costdffreighr.
) rNr'l-urEc?1aeoa-n-sE
g Oplca B h4 i_ kd
covef ohd lcc c r.ry li1ired cover.

---

Th€ relevdnt
cldus€reqlines
rhor toss
of ddhoge
be.€6oioDry
.
v4seror crqtt bejhg
stmhded,
ground€d,
suhk
or
ove.ruming
dr defdithen.i
ofd ldnd.onveydnce
-
co//ision
ofconioctof vessel,
crofr or conv€ydnce
wiih
qny
drefndr objecr
orher
rhdh
wdrer.
-
Di3chorge
of cdrso
dr o porr of disr.ejs.
-
(Icc I only)
edlrhquqke,
vdtcono,
iighrning.
-
A.ne.ol overcge
socrifi.e
-
(ICc B only)
w6hin9
ov€r bodrd
-
llcc B anly) enrry ot sea, ldke, river wdief ihro the
ve3sel,
cfdfr, hdtd,
coiveydnce,
.oh1otner,
lifl ydn
d.
(Icc B only)
rotot toss
of ony
pdckoge
to5roverbod.d
or
dfopped
whilstldoding
onro
orfrdh vessalor
cmfr.

---

Th€ Icc g i5 recohhended
fof cd€oe5thol could
be dqhoqed
by wdrer e.9 qrc n5, sugdr,
hdcnrnefy.
TheIca C hqslhe lowe3r
prehuhqnd
iT sdPpfoPniot€tor
shiphenr
rhdt do not suffer froh wdter,
we hdve
been
reldbly
infonh€d thot ir hds
o flxed md.ket
.ot. ol .2%
al casr
of
Deroils
on nqtlr€ df cover,
dppfopriote
cov€r, P.enium
Pdydbe,
dddrtionq
c ous€s or cdver
for wdrs,
strik€s, ock durerccdn
b€
p.ovided
by Ihsufohce
cohponi€s. We hdve
invited
ou.friend3
in
th. insurdnce
Industry
to cldrify ms.dn.eprioBond
encoutuge
5h ppefs
to take opproPriote
insu.dnce
coverfor
their 5h Ph€nrs
NEXIAA5
RI5I( BEARING
FACITITIE5
The Nigefion
Ihport Elpo.t Sonk
hds
idken
dnorher
steF
forwdrd
by prcvidihg
two focilitia fo. the fociitdtion
dnd
Ihprovenenr
of Nigeros
dpo|t trad€:

---

O) EXPOAT
CREOIT
6UARANTEE
This lso poli.trhot ihdemnifi€s
rhe bonks
dqdinsro
percentdge
ar ta.s dris/ng
fron d€fqulr by rhe *pori€r.
The iid€nnily isgiven
by NEXtd wfth d viewtoenhonce
rhe €+orrer3 dccess
To cfedhqnd
i5 wrrh
recou.setothe
expoder
thfough
The
bonk.
b) EXPORT
CREDIi IN5URANCE
Theexpdrl
cr€dir insurdncepoticy
is desgnedro
p.orect
dporr€.s rh Nigerid
qgoiBr
the risks
of non
poyhenr
fof
90dds
ond
seryrc€s
apo.red on cr€dftrerns. This po icy
underwfiles
risksqssociored
wirh the buyer.
SOAAE
RISKS
FACED
BY NIcERIAN
SHIPPERS
Froud,
theft ond
d€loyore thr€€ hojof fisk foced by rhe
Ngeron shippers It qppe.fs
rhor Froud
dnd
Thefr dfe.over€d
by rh€Icc A poli.y,
inodd!.tidn,
Ffoud
onexpo,rrrrode
by
NEXIM
5 EXPOQT
CREDIT
INSURANCE
r\\4dr
tih€ ffdud hqs
bee'd?s.
'bad
b, or? drrards rha
obrdr':ror non4 ,,
propedy
in rhe goods,
or d p€cuhiary
ddvdhroge
by one
o. hore
pd.rres,
by qny
one
dr hore of rh€fo|owing n4h5

---

.
s i t o r ? o t i a s"a at'ds f ?d do.rren-, D.rloiiilo'0
rhegoodso.rheshiP3oidtobecd.ryingsuchgoodsl
.
co n c€olhenr or nisrePres€nlol id n of mdi€ r io I fdcts;
.
iubsriruronof nubbish
orpoorquolity9ood5
fo.P.oPer
.
sho'ir oddnq
o.shdd ldnding
ofgodds.
.
foilufe ofchd.re.portia or breoch
of controct;
.
d€ ib€mte insolvency
.
s"r n9ol Let btoob-o1'lsurotao.ro1?'slen'
or high
vdlue
Cd.goi
r
sehdinggoo&on
noh
€xist€nt ships:
.
pilferoge
6y .tevedores)
.
div€rsionof shipsfo.se ing
off corgo
dishones
yof
.
hdkinq
inpropd demonds
for odd
riond fre tht:
.
5 5 1 1 9 p i r a r s o ! n o ' r t I
o a o - d \\ . Q a l b m s o ! l o d ^ a
.
5i9hns
blonkbillsof
lodng
or issuing
or is3lingtwo

---

t
usrng
qi €srdbrish€d ond r€purdb e r.l€x ro indu.. o
.
.e 19 Lo 0 poo...onDol) o' d eorihbss loapoly wf'
inpfes3ive
bur folse pedigrez ro ndrcep.aptera enter
,nfo o conhod (rong-fh'i
ffoudJ
colld we sdf€ry Gsuh€ rhor rh€ lcc A dndrheNdihs Expdf
Cr€dit IBUronc€ wou d cover th€ risks €nuh€fo.r€d dbove
wher€
tha a, pper
rassrt.e-eowiat da-ag, oso ^ds/t at F,
frdud!lenr dctivities
of others ih on InT€rholionot
trode
Anorherhajof problem
is deloy
in detiverydhd
detcy
ih Jhe
pfo.6sih9of docuhenrs.
we hovefecetved
conpldihtssqch
05
1053
or norker, €rorb/tdht bonk
cho.96 of ihterest,
denurjqsc
dhd othe. coh3equenriol
ecohohric
ios54
wehop€ to workgenerollyoi
FrN/4NcrALRrsKS
FACED
gt
SHIPPEPS
AND DOCLJ]I,IENT/4RY
CREOIT
PPATIICEs
!N
NI6ERIA The fo.!h drworkhopw€ hopewould
hoJd
tdrer ih
th€ yeor ro dohin€ how *4e fetd+e
to rhe Shipper
did the

---

-ii: l),,1he Fuhd
h$ be.n 5er rp io.5s sr sh ppe.5 p!rs4e th€ |
a c hr €q i hdl.ly by oo!.riig iarhrnd ono i.jotad?tr. dnd
D d ' a . ' , o ' ' '
1 h
ti
nhot€rol,,hrthe.rhe.on -"ihnN9"
oorn I

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