By Steve Agbota
Freight forwarders have lamented an estimated 65,000 to 100,000 Twenty-Foot Equivalent Unit (TEU) of empty containers that are currently dumped and littering Nigerian ports, posing health risks and environmental pollution.
This was disclosed in a document made available to Daily Sun by the Head Researcher of the Sea Empowerment and Research Center (SEREC), Eugene Nweke who said that about 45% of containers circulating in the Nigerian shipping space are reportedly “lickety” containers that fall under the classification of unseaworthy containers.
According to him, Nigerian freight forwarders have long complained about the practice of shipping lines discharging laden containers in Nigeria and then sailing back to origin ports with only a few export containers, leaving behind over 97% of empty containers.
He said this practice has been attributed to the cost implications of freighting back empty containers, which has resulted in a significant backlog of empty containers in Nigerian ports.
“SEREC conducted a review of freight forwarders’ claims and discovered that the cost of freighting empty containers back to Europe, Asia, the US, and the Middle East from Nigeria varies greatly depending on several factors, including the point of loading, destination, carrier, and market fluctuations.
“On comparative studies, SEREC undertook a comparative study to determine the exact average rate for freighting back empty containers from Nigeria to China. Based on recent data, the estimated costs are: 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) and less than Container Load (LCL): $150-$500 per cubic meter,” he explained.
On average transit times, he revealed that the sea freight transit time from Nigeria to China typically takes 21-26 days, while air freight takes 1-3 days.
Speaking on cost burden, he said SEREC estimates that it would cost a ship with a loading capacity of 4,500 TEUs approximately $9 million to freight back empty containers to the origin port, adding that this is considered a significant cost burden on shipping lines.
To address the issue of dumping empty containers in Nigerian ports, he said SEREC recommends, encouraging Nigerian businesses to increase their exports to reduce the number of empty containers and investing in better port facilities and management systems to streamline container handling and reduce congestion.
He said there is need to establish efficient container return systems to reduce the number of empty containers left in ports.
However, SEREC strongly recommends that shipping lines, port authorities, and government agencies work together to develop and implement effective container management strategies.
Additionally, he said there is a need to improve port facilities and technology to enhance efficiency and reduce congestion, adding that the government should also encourage Nigerian businesses to increase their exports to balance out the number of empty containers.
“In conclusion, SEREC wishes to remind shipping lines that, as provided in the Customs Act 2023, containers fall under the category of temporary importation (TI). After three months’ grace, containers circulating in the Nigerian shipping space shall be converted to dutiable imports. SEREC believes that it is in the best interests of shipping lines to do the needful and respect trade terms,” he said.