Somalia

Damage to port facilities at Berbera may lead to extremely inflated financial demands

Vessels carrying cargoes to Berbera, Somaliland should be aware of possible high financial demands should damage to port facilities arise. Cases at this port have experienced claims from the port authorities of between 5 and 7 times the estimated cost of repair.

In one case, the vessel's bow contacted the quay wall. The impact was minor and the damage estimated to cost around USD20,000. The vessel was detained with the authorities rejecting P&I Club's Bank Guarantee and Letter. To achieve the vessel's release, an inflated sum of USD160,000 was paid.

Other cases have been the detention of the vessel and a claim for USD1.5 million for underwater damage to the quay wall. The wall was later repaired at a cost of USD350,000.