SEREC encourages Nigeria to double exports to reduce empty containers

Worried about a huge number of empty containers in Nigerian seaports and the costs of freighting them back to their country of origins, the Sea Empowerment and Research Center (SEREC) has encouraged Nigeria to double her exports to reduce the number of empty containers.

In its (SEREC) finding, an estimated of 65,000 to 100,000 TEUs of empty containers are currently dumped in Nigerian seaports, posing health risks and environmental pollution. Moreover, about 45% of the containers circulating in the Nigerian shipping space are reportedly “rickety” containers that fall under the classification of unseaworthy containers.

SEREC estimated 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, a significant cost burden on shipping lines.

According to SEREC, average rates for freighting empty containers from Nigeria to China 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.

SEREC pointed out that average transit times from Nigeria to China typically takes 21-26 days, while air freight takes 1-3 days.

SEREC further encouraged Nigeria to further invest in better port facilities and management systems to streamline container handling and reduce congestion.

The research center added that Nigeria should stablish efficient container return systems to reduce the number of empty containers left in the ports.

To further ameliorate the problem of abandonment of empty containers in Nigerian seaports, the research center strongly recommended 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,” said Dr. Eugene Nweke, Head of Research, SEREC