Shipping Firms Defend Freight Hike, Cite Inflation and Currency Pressures
The Shipping Association of Nigeria (SAN) has defended recent increases in shipping and freight charges, attributing the adjustments to persistent inflation and the volatility of the Naira against the US dollar and other foreign currencies. According to the association, these economic pressures have significantly raised operational costs across the maritime sector.
Responding to criticism from the National Association of Government Approved Freight Forwarders (NAGAFF), SAN emphasized that the tariff adjustments approved by the Nigerian Shippers’ Council (NSC) were the result of a nearly two-year regulatory review involving extensive stakeholder consultations.
In a letter dated March 16, 2026, SAN Chairman Boma Alabi explained that the opposition from freight forwarders largely stems from a limited understanding of the regulatory processes and operational realities of international liner shipping. She noted that the approved increase was not arbitrary or imposed unilaterally by shipping lines, but rather the outcome of detailed cost submissions, economic assessments, and regulatory scrutiny by the NSC in its role as Port Economic Regulator.
Alabi stressed that the tariff adjustment represents only a partial cost recovery measure, given rising expenses such as port and terminal charges, regulatory compliance costs, exchange rate fluctuations, and logistics overheads. She described the adjustment as modest and below Nigeria’s cumulative inflation rate over the same period, emphasizing that it is a necessary step to cushion rising costs rather than a real economic increase.
The SAN chair further highlighted that not all shipping lines received the adjustment, reflecting the NSC’s case-by-case assessment. She added that most operators along the port value chain—including truckers, clearing agents, terminal operators, and freight forwarders—have also increased their charges in response to prevailing economic realities.
Alabi argued that it would be unfair to expect shipping companies alone to maintain static rates amidst escalating costs, stressing that the NSC’s decision ensures sustainability of maritime services while maintaining fairness within the industry. She advised that any concerns regarding the tariff approval should be addressed directly to the Nigerian Shippers’ Council, which oversaw the regulatory process.
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