As the port congestion situation will not improve in the short term, and it may be further aggravated, the transportation cost is not easy to estimate. In order to avoid unnecessary disputes, it is recommended that all export companies sign FOB contracts as much as possible when trading with Nigeria, and the Nigeria side is responsible Undertake transportation and insurance. If the transportation must be borne by us, it is recommended to fully consider the factors of Nigeria detention and increase the quotation.
Due to severe port congestion, a large number of stranded container cargo has a worrisome chain reaction to Lagos port operations. The port is congested, a large number of empty containers are stranded overseas, the transportation cost of goods has surged by 600%, about 4,000 containers will be auctioned, and foreign traders are rushing.
According to the West Africa China Voice News, in Nigeria’s busiest ports, the TinCan Island Port and Apapa Port in Lagos, due to port cargo congestion, no less than 43 vessels full of various cargoes are currently trapped in the waters of Lagos.
Due to the stagnation of containers, the transportation cost of goods soared by 600%, and Nigeria’s import and export transactions also fell into chaos. Many importers are complaining but there is no way. Due to the limited space in the port, many ships cannot enter and unload and can only stay at sea.
According to the “Guardian” report, at the port of Apapa, one access road was closed due to construction, while trucks were parked on both sides of the other access road, leaving only a narrow road for traffic. The situation in the port of TinCan Island is the same. Containers occupy all the places. One of the roads leading to the port is under construction. The security guards extort money from the importers. A container transported 20 kilometers inland will cost US$4,000.
The latest statistics from the Nigerian Ports Authority (NPA) show that there are 10 vessels stopping at the port of Apapa at the Lagos anchorage. In TinCan, 33 ships were trapped at anchor due to the small unloading space. As a result, there are 43 ships waiting for berths in the port of Lagos alone. At the same time, it is expected that 25 new ships will arrive in the port of Apapa.
The source is obviously concerned about the situation and said: “In the first half of this year, the cost of shipping a 20-foot container from the Far East to Nigeria was US$1,000. Today, shipping companies charge between US$5,500 and US$6,000 for the same service. The current port congestion has forced some shipping companies to transfer cargo to Nigeria to neighboring ports in Cotonou and Côte d’Ivoire.
Due to severe port congestion, a large number of stranded container cargoes are seriously affecting the operation of Nigeria’s Lagos port.
To this end, industry stakeholders called on the government of the country to auction about 4,000 containers to alleviate the congestion in the port of Lagos.
Stakeholders in the national dialogue called on President Muhammadu Buhari and the Federal Executive Committee (FEC) to instruct Nigeria Customs (NSC) to auction goods in accordance with the Customs and Cargo Management Act (CEMA).
It is understood that some 4,000 containers have overdue stranded in some terminals of the Port of Apapa and Tinkan in Lagos.
This not only caused port congestion and affected operational efficiency, but also forced importers to bear a lot of additional related costs. But the local customs seem to be at a loss.
According to local regulations, if the goods remain in the port for more than 30 days without customs clearance, they will be classified as overdue goods.
It is understood that many cargoes in Lagos port have been detained for more than 30 days, the longest being as long as 7 years, and the number of overdue cargoes is still increasing.
In view of this, the stakeholders called for the auction of goods in accordance with the provisions of the customs and cargo management law.
A person from the Association of Nigerian Chartered Customs Agents (ANLCA) said that some importers have abandoned goods worth tens of billions of naira (about hundreds of millions of dollars). “The container with valuables has not been claimed for several months, and the customs has not shipped it out of the port. This irresponsible practice is very disappointing.”
The survey results of the association show that stranded cargo currently accounts for more than 30% of the total cargo in the ports of Lagos. “The government has the responsibility to ensure that the port has no overdue cargo and provides sufficient empty containers.”
Due to cost issues, some importers may have lost interest in clearing these goods, because customs clearance will cause more losses, including payment of demurrage. Therefore, importers may selectively abandon these goods.
Post time: Jan-15-2021