Empty Container Crisis in Nigerian Ports

The Sea Empowerment and Research Center (SEREC) has urged the Federal Government to increase its exportation of goods to clear up shipping space and tackle container dumping in ports.

Mr Eugene Nweke, Head Researcher of SEREC, said this in an interview with the News Agency of Nigeria (NAN) on Monday in Abuja.

Nweke said that the practice of shipping lines discharging laden containers in Nigeria and sailing back to origin ports was due to low exports requiring only a few export containers.

He said that this finding was based on a recent comparative research carried out by the centre to uncover the cause ofcongestionn and container dumping in Nigerian ports.

“According to freight forwarders, an estimated 65,000 to 100,000 Twenty-foot Equivalent Units (TEUs) of empty containers are currently dumped and littering Nigerian ports, posing health risks and environmental pollution.

“About 45 per cent of these containers circulating in the Nigerian shipping space are reportedly lickety containers that fall under the classification of unseaworthy containers.

Based on ttheseclaims, SEREC conducted a review of freight forwarders’ claims and discovered that the cost offreightin gg empty containers back to Europe, Asiathe , US, and the Middle East is exorbitant.

“We undertook this comparative study to determine the exact average rate for freight back empty containers from Nigeria to China.

“Based on recent data, SEREC estimates that it would cost a ship with a loading capacity of 4,500 TEUs approximately $9 million to freight back empty containers.

“This is considered a significant cost burden on shipping lines,” he said.

Nweke also attributed the extensive sea and air freight transit time from Nigeria to China as another factor causing container dumping in ports.

He noted that the estimated costs of freight to other routesweres also costly.

“The estimated costs to freight a 20ft Full Container Load (FCL) containewereas between $2,000 to $4,000 or £5,351 to £5,914, while 40ft FCL was between $3,500 to $6,000 or £10,167 to £11,236 for a different route.

“The cost for Less than Container Load (LCL) is about $150 to $500 per cubic meter, and thisdependsg on several factors, including the point of loading, destination, carrier, and market fluctuations,” Nweke said.

Nweke said that due to the high cost offreightg back containers, shipping lines returned to origin ports, leaving behind over 97 per cent of empty containers in Nigeri,a which called for concern.

He said that the practice had resulted in a significant backlog of empty containers in Nigerian ports, reducing shipping spaces.

Nweke recommendedthe  empowerment of Nigerian businesses to increase the exportation of goods.

He urged FG to invest in better port facilities and management systems to streamline container handling and reduce port congestion.

According to him, FG must enforce the provisions of the Customs Act 2023, stating that containers fall under the category of temporary importation (TI) with a moratorium.

“After three months, containers circulating in the Nigerian shipping space shall be converted to dutiable imports and shipping lines must respect tthesetrade terms.

“FG should establish efficient container return systems to reduce the number of empty containers left in ports.

“Shipping lines, port authorities, and government agencies should work together to develop and implement effective container management strategies.

“Additionally, there is a need to improve port facilities and technology to enhance efficiency and reduce congestion,” he said.

He encourages Nigerian businesses to increase their exports to balance out the number of empty containers in ports. (NAN)