SEREC Proposes Solution to Empty Container Dumping In Nigerian Ports
Kathy Kyari
Stakeholders in the maritime sector are extremely concerned about the ongoing problem of abandoned empty containers in Nigerian ports. About 45% of the containers circulating in the Nigerian shipping space are reportedly "rickety" containers, which are classified as unseaworthy containers.
According to a statement issued on Tuesday by Fwrd. Eugene Nweke, Head of Research at SEREC, titled "Unravelling the underlying reasons why empty containers litter the Nigerian shipping, port space." The practice of shipping lines discharging full containers in Nigeria and then returning to their origin ports with little export cargo has long been condemned by freight forwarders throughout the nation.
As a result, over 97% of empty containers are reportedly left behind, causing congestion and posing serious environmental and health risks.
The reports from the Freight forwarders, estimates 65,000 to 100,000 twenty-foot equivalent units (TEUs) of empty containers are currently dumped and scattered across various Nigerian port terminals.
The Sea Empowerment and Research Center, (SEREC) recently conducted an independent review of these claims. Their findings support the concerns raised by freight forwarders, revealing that the cost of freighting empty containers back to ports in Europe, Asia, the United States, and the Middle East is a major deterrent.
Nweke noted that these cost vary depending on the port of loading, destination, shipping carrier, and prevailing market conditions.
In a comparative study focusing on freight costs from Nigeria to China, SEREC outlined the following estimates: 20ft Container (FCL): $2,000 - $4,000 (or £5,351 - £5,914 for a different route), 40ft Container (FCL): $3,500 - $6,000 (or £10,167 - £11,236 for a different route), less than Container Load (LCL): $150 - $500 per cubic meter
The study also highlighted the average transit time for sea freight between Nigeria and China as ranging from 21 to 26 days, compared to 1 to 3 days by air freight.
SEREC further estimated that it would cost a vessel with a 4,500-TEU capacity approximately $9 million to return with empty containers to the port of origin. This figure, they argue, presents a significant cost burden on shipping lines.
In response to the growing container congestion problem, SEREC proposed several potential solutions. These include:
"Encouraging Nigerian businesses to increase exports to reduce the number of empty containers that need to be returned. Investing in improved port infrastructure and management systems to streamline container handling processes and alleviate congestion and Establishing efficient container return systems to prevent containers from being abandoned in ports."
SEREC emphasized the importance of collaboration among key stakeholders. "Shipping lines, port authorities, and government agencies must work together to develop and implement effective container management strategies," the organization stated. They also stressed the need for the government to promote export activities to restore a balance in container movement.
The organization issued a reminder to shipping lines regarding compliance with the Customs Act 2023, which categorizes containers as temporary importation (TI).
According to the Act, after a grace period of three months, containers left within the Nigerian shipping space are to be considered dutiable imports.
“SEREC believes that it is in the best interests of shipping lines to do the needful and respect trade terms,” said Dr Eugene Nweke, Head of Research at SEREC.
The organization urged all relevant authorities to act swiftly in addressing the crisis to safeguard the efficiency and sustainability of Nigeria’s port environment.
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