The Nigerian shipping industry is bracing for a new wave of increased charges on cargoes, sparking concerns among licensed customs agents and freight forwarders. CMA CGM, a major shipping company, announced a tariff hike effective March 10, 2025, citing the recent increase in port and marine charges implemented by the Nigerian Ports Authority (NPA) on March 1, 2025. This upward adjustment will see the cost of shipping a 20-foot container rise to N145,327 and a 40-foot container to N290,654. The same charges apply to reefer containers of the respective sizes. This announcement has prompted immediate reactions from various stakeholders within the industry.
Licensed customs agents, represented by the Association of Nigerian Licensed Customs Agents (ANLCA), have expressed strong disapproval of the increased charges. ANLCA’s National Protocol Officer, Mr. Amuni Riwane, condemned the hike, describing it as adding “salt to an injury” given the prevailing harsh economic climate. The association’s ethics committee has scheduled a meeting with the shipping companies to discuss the way forward and explore potential solutions to mitigate the impact of the increased charges on their operations and the wider economy. This engagement reflects the urgency of the situation and the need for collaborative dialogue between stakeholders.
Freight forwarding associations have also voiced their concerns and intentions to engage with the shipping companies. While the National Association of Government Approved Freight Forwarders (NAGAFF) acknowledged being unaware of the official notification of the increase, they confirmed their readiness to engage with shipping companies. Mr. Nnadi Ugochukwu, Head of Shipping and Terminals at NAGAFF, emphasized the inevitable impact of any additional cost on port operations and the cost of doing business. He reiterated NAGAFF’s commitment to engage in discussions with the shipping companies once they receive formal notification of the price increase. This proactive stance highlights the importance of communication and negotiation in addressing industry challenges.
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has also signaled its intent to engage with CMA CGM. President Frank Ogunojemite highlighted the futility of previous attempts to engage with the NPA, whom they believe are encouraging the shipping companies to increase charges. He expressed concern about the impact of the increased costs on the purchasing power of ordinary citizens and the overall cost of doing business at Nigerian ports. Mr. Ogunojemite emphasized the significant role shipping and terminal charges play in logistics and supply chain management, warning of the far-reaching consequences of such increases. This perspective underlines the interconnectedness of various stakeholders and the potential for cascading effects throughout the supply chain.
The concerns raised by industry stakeholders are echoed by individual clearing agents like Mr. Ikenna Ejiogu, who predicts that the higher charges will ultimately trickle down to consumers through increased prices for imported and exported goods. He anticipates reduced profit margins for businesses, potentially impacting their competitiveness in the global market. This view paints a picture of the potential economic ramifications of the increased shipping and terminal charges, extending beyond the immediate players in the industry to affect consumers and the wider economy.
In summary, the announced increase in shipping charges by CMA CGM has triggered a ripple effect of concern and planned action across the Nigerian shipping industry. Licensed customs agents, freight forwarders, and individual clearing agents have all expressed their apprehensions about the impact of the increased charges on their operations, the cost of doing business, and ultimately, the Nigerian consumer. The various stakeholders are mobilizing to engage with the shipping companies, emphasizing the need for dialogue and potential negotiation to mitigate the potential negative consequences of the price hike. The situation underscores the complex interplay between government policies, shipping company practices, and the wider economic environment in Nigeria. The outcome of the planned engagements will be crucial in shaping the future trajectory of shipping costs and their impact on the Nigerian economy.
