Togo

Cargo shortage claims - Lome , West Africa

We have experienced several claim for cargo shortages which has given rise to substantial claims. In addition to the actual cargo shortage claim for which security is required, the custom authorities now takes advantage and lodges a fine against the shipowner for breach of customs regulations. Customs authorities require security for as much as the cargo shortage claim and demand security based on a wording which triggers settlement of an amount which is mutually agreed between the ship agents and the custom authorities. Any different wording under the Club's security is not accepted to enable the vessel to be released. In all likelihood the ship agents are friendly with the customs authorities and invariably agree to a fine which is considered unreasonably high. Further the ship agents are usually nominated by the charterers and have no interest to protect the owner's interest. In one case an alleged shortage of 5,000 bags of sugar resulted in a fine of US$100,000. A substantial amount of monies have been extorted from shipowners and the P&I Club in this manner.

We urge shipowners who trade their vessels to West African ports to include into their charterparty a clause which provides such unsubstantiated cargo shortage and customs losses to be contributed or shared with the charterers, subject to the results of the P&I Club's independent tally surveys being carried out at loadports and disports. costs which should be shared between owners and charterers. Further the ship agents at West African ports should be approved by the owners in all cases. Should our clients require any assistance with the drafting of such a clause to include into the charterparty, they are free to contact us.

We would advise that we understand this customs practice applies to all West African ports and not only to Lome."