The Sea Empowerment and Research Centre (SEREC) has sounded an alarm regarding a critical issue plaguing Nigeria's maritime sector: an estimated 100,000 abandoned or unseaworthy empty containers are currently littering the nation’s seaports. Dr. Eugene Nweke, Founder of SEREC and a former National President of the Nigerian Association of Government Approved Freight Forwarders (NAGAFF), highlighted that these containers pose significant health risks and contribute to environmental pollution. In a document titled ‘Unravelling the underlying reasons empty containers are dumped, littering the Nigerian shipping and port space’, SEREC detailed the extent of the problem.

A startling revelation from SEREC is that approximately 45 per cent of the containers circulating within the Nigerian shipping space are reportedly “rickety” and fall under the classification of unseaworthy containers. This situation is compounded by the practices of shipping lines, as Nigerian freight forwarders have long complained that these lines discharge laden containers in Nigeria and then predominantly sail back to their origin ports with minimal export containers, leaving behind over 97 per cent of the empty units. This practice has led to a substantial backlog of empty containers in Nigerian ports.

The primary driver behind the abandonment of these containers is the considerable cost associated with freighting them back to their points of origin, such as Europe, Asia, the United States, and the Middle East. SEREC conducted a comparative study to ascertain the average rates, particularly for returns from Nigeria to China. Based on recent data, the estimated costs are: $2,000-$4,000 for a 20ft Full Container Load (FCL), or £5,351-£5,914 for a different route; $3,500-$6,000 for a 40ft FCL, or £10,167-£11,236 for a different route; and $150-$500 per cubic meter for Less than Container Load (LCL) shipments. The sea freight transit time from Nigeria to China typically ranges from 21 to 26 days, whereas air freight takes approximately 1 to 3 days.

Illustrating the financial implications, SEREC estimates that it would cost a shipping line operating a vessel with a loading capacity of 4,500 Twenty-foot Equivalent Units (TEUs) approximately $9 million to freight its empty containers back to the origin port. This substantial expense is considered a significant cost burden on these shipping companies, discouraging the repatriation of empty units.

The accumulation of these empty containers has tangible operational consequences for port operators. For instance, APM Terminals Apapa, the operator of the Lagos Port container terminal, recently had to suspend the acceptance of empty containers into its terminal for nearly a week. Steen Knudsen, the APM Terminals Apapa Terminal Manager, explained that a sharp and sustained surge in import cargo volumes forced shipping lines to prioritize discharging incoming laden containers over evacuating empties. This operational shift resulted in a burgeoning inventory of empty containers within the terminal, severely limiting yard space and hindering smooth operations.

To address the escalating issue of dumped empty containers, SEREC has put forth several recommendations. A key suggestion is to encourage Nigerian businesses to significantly increase their export activities, which would naturally reduce the imbalance and the number of empty containers needing return. Furthermore, SEREC emphasizes the need for investment in better port facilities and management systems to streamline container handling processes and alleviate congestion.

SEREC also advocates for the establishment of efficient container return systems to diminish the quantity of empty containers left abandoned in ports. Crucially, the research centre calls for collaborative efforts between shipping lines, port authorities, and government agencies to develop and implement effective, holistic container management strategies. This includes a renewed focus on improving port facilities and leveraging technology to enhance overall efficiency and reduce bottlenecks.

Finally, SEREC has reminded shipping lines of their obligations under the Customs Act 2023, which classifies containers as items under temporary importation (TI). According to the Act, after a three-month grace period, any containers still circulating in the Nigerian shipping space are to be converted to dutiable imports. SEREC firmly believes it is in the best interests of shipping lines to comply with these regulations and respect established trade terms, thereby contributing to a resolution of the empty container problem.