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    Home » Shipping firms dodge $900m cost, as Nigeria hit by empty container glut

    Shipping firms dodge $900m cost, as Nigeria hit by empty container glut

    June 10, 2025
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    *Tin-Can-Island port, Lagos.

    Esther Oritse

    Lagos — The Sea Empowerment and Research Center (SEREC) has raised the alarm over the presence of an estimated 100,000 abandoned empty containers scattered across Nigeria’s seaports.

    According to SEREC, it would cost shipping lines approximately $9 million each—amounting to a total of around $900 million—to repatriate all the abandoned containers to their countries of origin.

    In a statement, SEREC founder Dr. Eugene Nweke warned that the growing accumulation of these containers now poses serious environmental and public health risks.

    Nweke, former National President of the Nigerian Association of Government Approved Freight Forwarders (NAGAFF), revealed that approximately 45 percent of containers currently in circulation within Nigeria’s shipping sector are classified as “lickety”—a term used to describe unseaworthy containers.

    Citing findings from the Sea Empowerment and Research Center (SEREC), Dr. Nweke noted that a review of freight forwarders’ reports showed wide variations in the cost of returning empty containers from Nigeria to destinations such as Europe, Asia, the United States, and the Middle East. These costs, he said, are influenced by multiple factors including port of origin, destination, shipping line, and prevailing market conditions.

    He added that SEREC conducted a comparative study to establish average freight rates for returning empty containers to China.

    According to him, based on the latest data, the estimated costs are as follows:
    – 20ft Container (Full Container Load – FCL): $2,000–$4,000 (or £5,351–£5,914 for alternative routes).
    – 40ft Container (FCL): $3,500–$6,000 (or £10,167–£11,236 for alternative routes).
    – Less than Container Load (LCL): $150–$500 per cubic meter.

    The seasoned freight forwarder also stated that sea freight transit time from Nigeria to China typically ranges from 21 to 26 days, while air freight takes approximately 1 to 3 days.

    “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’ he said.

    Nweke also said SEREC strongly recommends that shipping lines, port authorities, and government agencies 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.

    “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.

    In his comments, Mr. Lucky Amiwero, National President, Council for Managing Directors of Licensed Customs Agents, NCMDLCA, said moving these empty containers to country of origin will also be at a cost to the shipping company adding that Nigerians need to boost their own export trade with a view to balancing both import and export trade.

    “That means they are bringing imports, and they are taking empty containers back and this is at a very high cost to them. Apart from that, Nigerians need to build up their export. Nigeria needs to do a lot of work than this propaganda the government is doing.’

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