The Sea Empowerment and Research Centre (SEREC) has stated that an estimated 100,000 abandoned empty containers are currently littering the nation’s seaports.
It stated that it will cost shipping lines about $9 million each, about $900,000, to ship the entire empty containers abandoned in the nation’s seaports.
Founder of SEREC, Dr Eugene Nweke, in a statement revealed that these empty containers are now posing health risks and environmental pollution.
Nweke, a former National President of the Nigerian Association of Government Approved Freight Forwarders (NAGAFF), disclosed that about 45 per cent of the containers circulating in the Nigerian shipping space are reportedly “rickety” containers that fall under the classification of unseaworthy containers.
He said 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.
He stated that SEREC undertook a comparative study to determine the exact average rate for freighting back empty containers from Nigeria to China and that based on recent data, the estimated costs are: “20ft Container (FCL): $2,000-$4,000 (or £5,351-£5,914 for a different route) and that 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 sea freight transit time from Nigeria to China typically takes 21-26 days, while air freight takes 1-3 days.
“Cost Burden: 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. This is considered a significant cost burden on shipping lines,” he said.
He further stated that to address the issue of dumping empty containers in Nigerian ports, SEREC recommends: “Encouraging Nigerian businesses to increase their exports to reduce the number of empty containers.
“Investing in better port facilities and management systems to streamline container handling and reduce congestion.
“Establishing efficient container return systems to reduce the number of empty containers left in ports.”
Nweke also said SEREC strongly recommends that shipping lines, port authorities, and government agencies work together to develop and implement effective container management strategies, adding that there was the need to improve port facilities and technology to enhance efficiency and reduce congestion.
“The government should also encourage Nigerian businesses to increase their exports to balance out the number of empty containers.
“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.
