Inadequate holding bays drive 450% surge in Nigeria's container transport costs

The cost of transporting containers in Nigeria has skyrocketed by 450%, with fares surging from N200,000 to around N1.1 million. Freight agents attribute this dramatic increase primarily to the lack of adequate holding bays for empty containers, a situation they claim is being exacerbated by shipping lines.

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The continued refusal or inability of MSC to make sufficient holding bays and designated collection points available for empty containers has created unnecessary bottlenecks that frustrate cargo movement, delay truck turnaround time, and worsen traffic congestion around the nation’s busiest seaport.

The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) specifically pointed to Mediterranean Shipping Company (MSC) as a major contributor to the problem. APFFLON stated that MSC's failure to provide sufficient facilities for returning empty containers creates significant bottlenecks, frustrates cargo movement, and leads to delays in truck turnaround times. This, in turn, worsens congestion around the Apapa Port, Nigeria's busiest seaport.

APFFLON's National President, Frank Ogunojemite, criticized MSC for frustrating port reforms and trade facilitation, subjecting importers to unjustified demurrage charges. The association highlighted that the transport cost for moving containers out of the ports to areas like Ijora has risen from N200,000 to over N700,000 due to these issues.

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It is unacceptable for a shipping company to continue issuing containers to importers without providing an efficient system for receiving the empty containers after use. This operational failure has become a major contributor to congestion at Apapa and is inflicting enormous financial hardship on importers, freight forwarders, and transport operators.

The association argues that while the government invests in port digitalization and reforms to improve efficiency, these efforts are being undermined by operational failures of shipping companies. APFFLON is urging the Federal Government and maritime agencies to investigate and sanction MSC for its persistent inability to manage empty container returns, which they believe is unfairly penalizing Nigerian businesses and contradicting the government's ease-of-doing-business agenda.

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Why should importers be punished financially for a problem created by the shipping company? This amounts to the exploitation of Nigerian businesses and runs contrary to the principles of fair trade and ease of doing business being championed by the Federal Government.