A maritime research group under the auspices of the Sea Empowerment and Research Centre has stated that Nigerian importers are losing $500m annually to inconsistent exchange rates and other importation challenges related to over 100,000 empty containers littering the nation’s ports.

This was contained in a document obtained by our correspondent on Sunday, signed by the Head of Research at SEREC, Mr Eugene Nweke.

Recall that a few weeks ago, Nweke said an estimated 65,000 to 100,000 twenty-foot equivalent units of rickety empty containers are currently dumped and littering Nigerian ports, adding that these containers pose health risks and environmental pollution to the country.

Giving an update on the empty containers, Nweke who is also a former National President of the National Association of Government Approved Freight Forwarders, explained that the cost of freighting empty containers back to origin ports is substantial, “with estimates ranging from $2,000 to $4,000 for a 20-foot container and $3,500 to $6,000 for a 40-foot container, depending on the route and market fluctuations.”

He added, “While exact figures are difficult to quantify, the Importers Association of Nigeria estimates that the country is losing over $500m annually due to inconsistent exchange rates and other importation challenges related to empty containers.”

He explained that the accumulation of empty containers at ports and along the roads leads to congestion, increased storage costs, and potential demurrage fees, which can be as high as N60,000 per container per month.

Nweke reiterated that abandoned containers pose environmental and health hazards, particularly if they are rickety or unseaworthy, which is estimated to be around 45 per cent of the containers in circulation.

He, however, advised that to mitigate these challenges, there is a need to encourage Nigerian businesses to boost exports, which can help balance the number of empty containers and reduce the financial burden on shipping lines.

Nweke also underscored the need to invest in better port infrastructure and management systems, which “can streamline container handling, reduce congestion, and enhance tracking and return logistics.”

“Establishing effective container return systems can minimise the number of empty containers left in ports and reduce storage costs. As it stands today in the industry, shipping companies charge Nigerian shippers an average of N10,000 per day for demurrage after the third period.

“Then, imagine if the government places a demurrage tax on a percentage basis, on every unreturned empty container after the official 3-month duration in the country. Such additional revenues are enough road/ environmental maintenance fraction,” he stated.

Nweke mentioned that several countries have implemented taxes or fees on unreturned containers after a specified period.

He pointed out that in light of these global best practices, it is reasonable for Nigeria to consider implementing a similar system to encourage the prompt return of empty containers and reduce the financial burden on shipping lines.

“The SEREC has officially written to the Minister of Marine and Blue Economy, proposing the need for the establishment of a strategic container return system, jointly coordinated or administered by the Nigerian Shippers Council, the Nigerian Ports Authority, and the Council for the Regulation of Freight Forwarding in Nigeria,” he concluded.