Shipping Firms Defend Maritime Service Charge Hike Amid Industry Protests
Shipping Firms Defend Service Charge Hike Amid Protests

Shipping Firms Defend Maritime Service Charge Hike Amid Industry Protests

The Shipping Association of Nigeria (SAN) has firmly defended the recent upward adjustment of service charges by shipping companies, describing it as a necessary partial cost-recovery measure. This move comes in response to escalating operational costs within the maritime logistics ecosystem, which have been impacted by prevailing economic realities over the past several years.

Rationale for the Charge Increase

According to SAN, the fee adjustment is designed to partially offset a range of financial burdens. These include high port charges, terminal costs, administrative and regulatory compliance expenses, exchange rate fluctuations, and logistics and operational overheads. The association emphasized that these factors have collectively strained the industry, necessitating the tariff review to ensure sustainability.

Protests by Freight Forwarders

In a contrasting development, freight forwarders and clearing agents in Lagos took to the streets yesterday, storming the offices of major shipping firms to protest the implementation of the increased charges. The protesters targeted companies such as the Mediterranean Shipping Company (MSC), Pacific International Lines (PIL), and the Lagos and Niger Shipping Company (LANSA), among others, demanding an immediate halt to the shipping charge hike.

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Regulatory Approval and Economic Context

Boma Alabi, Chairman of SAN, clarified that the tariff adjustment was approved by the Nigerian Shippers’ Council (NSC) after extensive review. She noted that the decision followed nearly two years of regulatory scrutiny and was influenced by current economic conditions, including inflation, foreign exchange volatility, and operational cost escalations. Alabi stated that the adjustment does not represent a real increase in economic terms but rather a limited, balanced regulatory decision aimed at maintaining fairness within the port economic framework.

Response to Opposition

Alabi also addressed a letter from the National Association of Government Approved Freight Forwarders (NAGAFF) Trade Advocacy Committee, dated March 12, 2026, which strongly opposed the tariff approval. She reiterated that the adjustment is modest and significantly below the cumulative inflation rate recorded in Nigeria over the same period, underscoring its necessity for the industry's viability.

Industry Support for Protests

Emmanuel Onyeme, National Publicity Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), confirmed that the protest is supported by all freight forwarding associations. Frank Ogunojemite, President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), also affirmed members' participation in the demonstrations. Ogunojemite criticized the charges as inhumane, warning that they could lead to further inflation and an astronomical increase in cargo clearance costs, exacerbating economic pressures on businesses and consumers alike.

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