Cargo companies justify rate increases, blaming rising costs and currency fluctuations

The Shipping Association of Nigeria has come out in defense of the recent hike in shipping and freight charges, citing the persistent strain of inflation and the volatility of the Naira against the US dollar and other foreign currencies as key factors driving the adjustment.

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This shift has significantly impacted the operational expenses of the maritime sector, according to the association, which emphasized that the rising cost environment has been a major challenge.

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In response to criticism from the National Association of Government Approved Freight Forwarders, the Shipping Association of Nigeria pointed out that the tariff adjustment was approved by the Nigerian Shippers’ Council after a thorough review process that lasted nearly two years and included extensive stakeholder consultations.

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A letter dated March 16, 2026, addressed to Dr. Increase Uche, Chairman of the NAGAFF Trade War Advocacy Committee, from SAN Chairman Boma Alabi, highlighted that the opposition to the adjustment stemmed from a limited understanding of the regulatory procedures and operational realities of international liner shipping.

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Alabi explained that the tariff was not arbitrarily imposed by shipping lines, but was rather the result of detailed cost submissions, economic assessments, and multiple layers of regulatory scrutiny by the Nigerian Shippers’ Council.

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According to Alabi, the approved increase represents only a partial cost recovery measure, taking into account the sharp rise in expenses such as port and terminal charges, regulatory compliance costs, exchange rate fluctuations, and logistics overheads in recent years.

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Alabi emphasized that the adjustment is modest and remains below Nigeria’s cumulative inflation rate over the same period, stressing that it does not constitute a real increase in economic terms but rather a necessary step to cushion escalating costs.

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The approval was not granted across the board, as not all shipping lines received the adjustment, reflecting the Council’s case-by-case assessment approach, Alabi noted.

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Most operators across the port value chain, including truckers, clearing agents, terminal operators, and freight forwarders, have reviewed their charges upward in response to prevailing economic realities, Alabi pointed out.

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She argued that it would be unfair to expect shipping companies alone to maintain static rates under similar cost pressures, adding that the decision by the NSC was aimed at ensuring sustainability of maritime services while preserving fairness within the industry.

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Alabi advised that concerns regarding the tariff approval should be directed to the Nigerian Shippers’ Council, which oversaw the process.