ilr$Iillltt
llliloiltl'JtI ilililIilil|
PRESENTED
MR A, B. SARUMI
I\\,IANAGING
DIRECTOR
NIGERIAN
SHIPPERS'
COUNCIL
i"sHIWfSf
s{ilHli
HELD AT NICON
HILTONHOTEL,
ABUJA
oN zq'n
- za'n reaRuARY
1999

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i'
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whether
i^'11-'^,it."-
.n" source
or another'
l:'':ll'#i
#;;;esents a rot
or risks
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iarms currencies ano laws u' .r
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in"
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rnvolved
necessitates
tne usE u

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of some
form - ships air crafts rail lines'
ano trucks These carrters
of goods are
i"J"iiv ino"p.no"nt
of the owners
of the
goods.
It is therefore
clear that a myriad of
i*.ul.
any participant 'n
"onttont"
international trade. lt is imperatlve
inl'"t"*
that a regime of collectrve
be estaolished
io ensure
that
"o-oiou"n"t
iiiJt"- i=.""" do noi overwhelm
the
owners
of the gooos
ln an effort to ensure
understand
ng of
have
the concept
of shippers
Protectlon'
I
in this Paper,attempted
to detlneneed
the shlPPersare, why they
protection
and how the shippers are
protected.

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2. WHO IS A SHIPPER?
Literallv a shipper is a Person or
corDor;te body who enlers into contracl
oi Lirelgntment
with a carrier
for the
i"rtiuq"" ot cargo from one Point to
another. However' in the Nlgerlan
context, a shiPPer is a Person or
body' who is a regular
"oroor.t" or consignor
of cargo for
"oriaion""
transaortation
to and
from
Nigerla
3. wHYlBolEgr-rt-lE-Sl-IEEEB?
One main reason shipPers need
orotection
is because they are usually
Iut"rout often
widely
dispersed
€nd 01
;;i;;;;;;tt""
thei rack anY rorm o{
io'i.."i"'"r relatronshrp
wlth one another'
Accordingly
-
their bargalning
power rs
*"r-k
to ihe Providers
of
"i'riP"r"o

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shiooinq services ln particular'
they
need orotection from the servlce
oi*io"r" in the areas of freight costs
oort charges handling
and other.charges
!"J qriiitv availabiliiy,
and reliability
of
the services
Provided
These
areas
usually
requlre
to arfive at
"ffsun2lensinegotiations
aoreeable
rates and terms ot servlce
H";;;;;t, because of the drspersed
nature of Nigerian shlppers they are
narory
in ant Posrtion
t9 ""t"1 -]1::
lon.itt"tion" with the service
providers
*-n"
are big multinaiionals
acting
"i""ffv
in concert
fbr onlY
their own good
In addition
to the above,
other
reasons
for
protecting
the interests
of shiPPers
are:-
That Nigerian
shippers
do not
have enough aPPreciahon
oT
the
shipping
industry

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operationsto enable them
devrce laMul mechanisms
to
reduce cost of shipment For
examPle,
it is almost invariably
cheaper
to aggregate
and snlp
by the shiPload
than to ship
individuallY.
b) That many Nigerian
shrppers
are middlemen
who just Pass
on any shipping
charges
to the
consumers. The
shlppers
cannot,
therefore,
be expec{eo
to exert the tYPe of user
Dressure
that would be needed
io resist increases in freight
and other charges
which may
be derlmertal to the econom,
of a develoPing
country such
as Nigeria.
c) That develoPing
countrles
sucn
as Nigeria
bear the full freight
costs of both their imPorts
ano
^-^^.+.
ha.rrise
thev reiv

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:::::1
""'ffi'J*
iij:#;:;
the need, for-the
"""""",iut""
::::::':,
Till:l;'J""i:;"';
'oilr.J"ut
"niPPine
ln ol11:o
influence
its internatlonal
u du' ,
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::::,[
:.:".ff
: T:'J
:.,H
J:,','[,T
:;
i"r."-,::"
J il;^"n
"il:lH:"
"1:
'::i*
I'i"i'","'iil
",n
" l3'",i
'i* lt:,{: :r :} ;.fi}"1
ii"j.u'" to acnreve
a reductron
"' f#?u"'n*"nt from
time.lo
time rnat'es regulatl^ons
'd\\ry>t
3l:,".i;1"::'il"''":'ill"

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sector of the economy There
is, therefore,the need to have
a body that would influence
government decisions In
matters
relatlngto the sector.
4. HOW ARE SHIPPERS
PROTECTED?
THE GENERAL
PERSPECTIVE
The shipping industry lnvolves several
'""i
,"itit""
therefore,
the measures
to
tn" shippers must be. mu'ti-
"r",",;i-
[,r""t,on"'. one speci{ic aspect rs to
tir""iil".
the oargaining
Power o'
rnro?,:" r" do r'rL shiPPers
'nust
;;;;;;;
be orsanised
eirher bY settins
, in'oo"= 6orrcrl or by so'ne
other
""
lfiplof,.'utl- -""nt
of establrshing
procedJres
which will ensure
"intrttr,'on

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that the interests
of the shipPers
are fullY
protected.
Another aspect is that of assessing
th-e
.ii"i"n"u of exrstrng
shipping
servrces
ii.
t *nl"n-tn" services
affect
"ra"ltt
ffi 1;il
t flow of trade and
6t oltuining
more
satisfactory
"i.r,uirit"l
!Jii""" uv urt",n"tive
courses
of actron
To achreve
this a shipping
investigation
,liiii""ra-ol t"t up io ensure
that
the
l^'i"i-
the unnecessary
use of
""oio"
'-i']ii',iru
traditionar
rrner
"xpen"ive
!""ili""1
r"i'!nip;ents.
Assres-aiion
or
may be encouraged
to-
"i".Lr-"ntt
!!ji'i,'iii ii,j-i;'s'n exchanse
asDects
or
i# ti"uLt ani to ensure
that the
li"""i" oi"i* r,ot lhe carriage
of the
foreiqn
tfade which it generales

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THE NIGERIAN
PERSPECTIVE
The Federal Government-
of
-o""r.""
.Nigeria
ir',,Iuon--
ruo 13 of, 1978
tn" Nigerran
shippers
"=i"ui'.n.J
1""""1
"i""g.,l:
- !"Lt^-"t
-'1"^"utiil
Natrons Confeten:?.
^"J^
^, "":
Development
s
rUNC
IAD)
general
lJr*"itt"t
slated above Tl"e councrl
"u-J
[",;';
to ensure
that shipment
of
rro.'r
0""0.-a'ano
Nig:ria ai,e^
d:::
i...ror tne rrost leliable sale d|u
arra''lgements
favourable
to
-i,
""o"ot"uf
:il;;;.
rs als6
to create
natronal
and
i"o".5"""'
',"""n n"w for consultatiors
with
..L.,"o rno relatio service
prov
ders on
;;;r:;t"r;.
as seryrce
scope 'elrabiritv
o"u,fV ,* ti"'gtt rales
for the beneft of
the shlPPers

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Specifically, the N genan Shippers'
Council is engaged in the following
activities:-
PROTECTIVE
ANDADVISORY
SERVICES
ln this regard,
the Council
r) Consults
with both government
and private
agencies
that ProvLde
shipping
and related
services
with
a view to Properly
adiculating
ihe
vlews of ihe shipPers A clear
example ts the Pivotal role the
council PlaYed in crafting the
transpoTt
sector inPuts to the
Vision
2010
rePort.
jr) Neqot;aIes w;th shiPPing li'1es
sl'ip-owne's the Nigefian Ports
Autho ly and any other agencles
offerinq
ancillary shlpprng
servrces on lssues tl'al affect

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import and export trade of the
shrppers.
iii) 'Siliffi *,,1i0
.""nfi3il'"
insurance claims' Pons a|'a
stevedoring
services,
cleanng
ano
forwardinq agents
actlvltles'
consiqnmLnt
loss of damage
etc
Tne iouncil does this, bY bangrng
'X""i:l
x?n'lr:'
i, jj""ii',"#
:i'rTf "r1""','ff";':'"':i'fi
:
complalnts
iv) Ensures
that Nigerian
High court
Judges
fu ly
understand
international maritime laws
through the ann u al
Mafltlme
Seminar
for Judqes sPonsoreo
oY
the Council
withlhe support
of the
Nigerian
Juolcial Instrtute This is

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a protective and pre-emptlve
aPpfoach
to the incldence
ot lne
misaPplication
of the law when
shiPPers'
comPlaints
anse
v) Advises shippers, through an
early wafning
mechanism
on how
besl
to
avoid
negatlve
consequences
of develoPments
and legislaiion
within the maatln"!e
transPort
sub-sector'
vi) Encourages the formation of
ShiPPers Associations natlon-
wide to ensure that the Proper
forum exists for ariiculatlng
shiPPers'views.
v,i) tjses tne Shrppers Protectror
Aovisorv
Committee
(SPACI a'rd
the Freighi Advisory Commitiee
\\FACJ to Provide a oroDlem-
so'v'nq torum for botn lhe

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consumers and provlders
hd
i?ffT*'ifrt'",ix1
*
Lg:l"l::ld"'illo'::,#:
;"1
i",.':Tl:"-,",,:t:T'"":"
g?,8'
: L
-;;
:';
the councrl and
l^-r.-*t i"
cuts
across
::"::'"T:;j,::."""':i
:i"lFl;
seTVices.
ENLIGHTENMENT
OF SHIPPERS
Tha Nioerian Shippers Councll
an
r"; "ln;
imponance
-..o+
";:
il' " :::: " l" llll jl, "' "'.l.10,
"",'"';
'i';";* i;;.
"*;:"t"*?l
":3i,:;"
afe well inlormeo duvu'

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developmenrsn the maritime
sector.
The strategiesncluoe:-
i) Conducting seminars and
conferences
on maritime lssues
and international
trade
Such
seminars
serye as forums
for the
exchange of rdeas information
and experience
among shlPPers
and expeds in the shlpplng
industry.
ii) Providing up-to-date information
on maritime issues to shlPPers
through the use of ihe Council's
esiab-lished
lnternet links to the
databases of
internaiional
maritime
and trade agencies
on
the world
wide web

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RESEARCH
STUDIES
[ "f:,1
-iil""T'
ll"'
iffi
' g""lii
n
o,*ll',?iT"
""","*lH":,,
;l
o,3l
?F"
::s;'fj
Ti,lJ'
""'1
J"1
:j:
l;t. ?;3f
::",
"'"
"iiilii
li"o'i!
activities
more Prof
itablY'
INTERNATIONAL
ACTIVITIES
il:,i;ltj":1ru1ffi."irl:,
ffg$trr.ffiiffi

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UNCTADMTO/|TC and ensures
active involvement
in the actlvltles
of the lnternational Maritime-
oroanization (lMO), Union ot
Afri-can
Shippers'
Councils
(UASC)
and the Ministerial
Conference
ot
West and Central
African States
on
Maritime
Transport
(MTNCONMAR).
CONCLUSION
This paper
has defined, believe,
in clear
also attempted
terms,
the shipper'
lt has the shipper to
to enumerate
the need for protection can
be protected
and how thls
be achieved
In concert
with other nations Nigeria
has
a Shippers
Councrl
which ;f
"","OLitn"O
o'opeflv supported and funded ls tn a
position to
provide comprehenslve

---

protection
to shippers
in various aspects
as stated above. However,
just as In
medical
treatment
where
the patient
must
make himself
available
to the clinic, the
Nioerian
shipper
must begin to see the
Nigerian
Shippers'
Council
as pudnll;
?
-ffr"e councit, therefore implores al
Nioefian
shippers
Io register
with it This
woiuld
provide
an opportunity
for them to
benefit from the various services
offered
by the Council.
Thank
you for listening.

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