A recent review of shipping activities conducted by the Sea Empowerment and Research Centre SEREC, has revealed that between 65, 000-100, 000 Twenty Equivalent Units (TEUs) of empty containers from China, Europe, United States of America and the Middle East are dumped in Nigeria annually by foreign shipping lines.

According to a report released by the Head of Research at SEREC, Dr. Eugene Nweke, the Centre noted that of all laden containers brought into the country, the shipping lines sail back with only three per cent laden with export products, leaving 97per cent behind, which are littered around the port terminals, thereby causing congestion.

The report further disclosed that the primary reason the shipping lines adopted this illicit practice is to evade the cost of shipping the empty containers back to the seaports of origin and the cost of storage in these countries, where authorities adhere strictly to global practice in handling of empty containers.

“Nigerian freight forwarders have long complained about the practice of shipping lines discharging laden containers in Nigeria and then sailing back to origin ports with only a few export containers, leaving behind over 97per cent of empty containers. This practice has been attributed to the cost implications of freighting back empty containers, which has resulted in a significant backlog of empty containers in Nigerian seaports.

“According to freight forwarders, an estimated 65,000 to 100,000 TEUs of empty containers are currently dumped and littering Nigerian ports, posing health risks and environmental pollution. Moreover, about 45per cent of containers circulating in the Nigerian shipping space are reportedly “rickety” containers that fall under the classification of unseaworthy containers.

“The Sea Empowerment and Research Centre 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.

“SEREC also undertook a comparative study to determine the exact average rate for freighting back empty containers from Nigeria to China. Based on recent data, the estimated costs 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) – 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.

“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”, the report read in part.

As part of measures to curb this menace and rid Nigeria’s port terminals of congestion, the report strongly recommended that Nigerian businesses should be encouraged to increase their exports to reduce the number of empty containers left behind in the country by the shipping companies.

It also recommends that huge investments should be made in modern and better port facilities and management systems to streamline container handling and reduce congestion, establish efficient container return systems to reduce the number of empty containers left in the ports.

The reports 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.

“Additionally, 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.”