Market News
Shipping firms lament drop in cargo volumes - DAILY TRUST
Seaport operators as well as shipping companies have continued to lament the downward slide in the volume of cargoes despite huge investment in port infrastructures.
Some state governments and private sector investors are pumping over $10 billion into the construction of new deep and river seaports.
However, operators have expressed concerns over the declining ship traffic and import volume into Nigeria.
The shrinking volume of port business caused by the increase in port charges, weaker naira, FX instability, and volatile exchange rate for clearing, are said to be threatening the viability of both the old and the new seaports in Nigeria.
Vessel calls into Nigerian ports dropped by 4.5 per cent to 3,778 in 2023 as against 3,957 vessels in 2022.
Similarly, Cargo throughput (excluding crude oil) also recorded a drop of 6.4 per cent as a total of 70.47 million metric tons in 2023 against 75.27 million metric tons in 2022.
Speaking at a press conference in Lagos, Boma Alabi (SAN), the chairman, Shipping Agencies, Clearing and Forwarding Employers Association (SACFEA), stated that the cost of doing business in Nigerian ports is working against the country as smaller countries have taken advantage to wrest cargoes from Nigeria.
Alabi stated that the high cost of berthing vessels is making Nigerian ports uncompetitive to customers.
She said Nigerian Ports have become uncompetitive because of the several charges customers are made to pay at the ports when compared to neighbouring ports like Cotonou and Lome which collect relatively low charges.
She called on the Nigerian government to stop dollarizing the economy.
“The 15% increment in shipping charges is a triple increment on the amount we used to pay. Just like the Customs 4% is suspended, please help us remove it. We are pleading,” she said.
