Freight costs skyrocket 600%! The highly risk of in Lagos,Nigeria

Due to severe congestion, the large number of stranded containers has had a worrying knock-on effect on port operations in Lagos.
The port is congested, a large number of empty containers are stranded overseas, the cost of shipping goods has soared by 600%, there are about 4,000 containers to be auctioned, and foreign traders are rushing around.

Since the port congestion will not be improved in the short term and may worsen further, the transportation cost is not easy to estimate. In order to avoid unnecessary disputes, it is suggested that all export enterprises should try to sign FOB contracts when trading with the NepalESE side, and NepalESE side should be responsible for the transportation and insurance.
If we have to undertake the transportation, we suggest that we take full account of the demurrage and increase our quotation.

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"Neverending" port congestion

In Nigeria's busiest ports, Tincan Island and Apapa, no fewer than 43 ships with various cargo loads are currently stuck in Lagos waters, according to the West African Voice newspaper.

The cost of transporting goods has soared by 600% as containers have stalled, and Nigeria's import and export business has been thrown into chaos.
Many importers are complaining but have no choice, and due to the limited space in the port, many ships can not enter the port and unload, they have to stay at sea.

At Tincan Island port, containers are all over the place, and one of the roads leading to the port is under construction, according to The Guardian.
It is the same story at the port of Apapa, where one access road is closed for construction while trucks are parked on either side of the other, leaving only a narrow road for traffic.

Latest statistics from the Nigerian Ports Authority (NPA) show that there are 10 vessels anchored at Apapa Port in Lagos anchorage.
At Tincan, 33 ships were stranded at anchor because there was too little room to unload.
That leaves the Lagos port alone with 43 vessels waiting to berth.
Meanwhile, 25 new ships are expected to arrive from Apapa Port.

"In the first half of this year, it cost $1,000 to ship a 20-foot container from the Far East to Nigeria," said the source, who is clearly concerned about the situation.
Today, shipping companies charge between $5,500 and $6,000 for the same service.
Current congestion at the ports has forced some shipping lines to divert cargo to Nigeria to neighbouring ports in Cotonou and Ivory Coast.

A huge backlog of containers is affecting operations at the Lagos port in Nigeria due to severe congestion.

Industry stakeholders have called on the government to auction off some 4,000 containers to ease congestion at Lagos's port.

Stakeholders in the national dialogue have called on President Muhammadu Buhari and the Federal Executive Council (FEC) to instruct the Nigerian Customs (NSC) to auction the goods in accordance with the Customs and Cargo Administration Act (CEMA).

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About 4,000 containers are expected to be auctioned

Some 4,000 containers have been overstayed at some terminals at Lagos's Apapa and Tingkan ports.

This not only leads to congestion at the port, affecting operational efficiency, but also forces importers to bear a lot of additional related costs.
But local customs officials seem baffled.

According to the relevant local regulations, if the goods stay in the port for more than 30 days without customs clearance, they will be classified as overdue goods.

It is understood that a lot of goods in Lagos port have been detained for more than 30 days, the longest has been as long as 7 years, and the overdue cargo is still increasing.

In view of this, the stakeholders called for the auction of the goods in accordance with the provisions of the Customs and Goods Administration Act.

Some importers have abandoned goods worth tens of billions of naira (hundreds of millions of dollars), according to the Nigerian Association of Authorised Customs Agents (ANLCA).
"Containers of valuables that have not been claimed for months and have not been removed from the port by customs are irresponsible and very disappointing."

The association's findings show that stranded cargo now accounts for more than 30 per cent of all cargo at Lagos ports.
"It is the responsibility of the government to ensure that ports are not overloaded and provide sufficient empty containers."

Some importers may have lost interest in clearing these cargoes because of the cost, which would have resulted in more losses, including demurrage fees.
Therefore, importers may selectively abandon these goods.

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Causes of congestion in Lagos port

Nepal's economy has developed rapidly and trade has grown rapidly

In recent years, Nepal's economy has been growing rapidly and its trade volume has been rising year after year.
According to the statistics of Nepali customs, in 2006, Nepali imports amounted to 22.83 billion US dollars, up 64.2% year on year; in 2007, imports amounted to 32.78 billion US dollars, up 43.6% year on year.
In the last 10 years, the cargo throughput of Lagos port has increased rapidly.
In 1999, Nepal's import and export tonnage was 22 million tons. In 2007, the tonnage of imports and exports rose to 54 million tons, an increase of 145.5%.
In the past 30 years, the government has built no new ports, apart from a few privately owned ones.
The development of Nepalese foreign trade makes the port throughput seriously insufficient.

The port infrastructure is backward

After privatization, foreign companies invested in the port to give priority to management and economic interests over infrastructure.
From the present situation, infrastructure has seriously restricted the development of the port.
Because of poor roads and traffic jams, trucks carrying containers are only able to make one round trip a day between the port and the depot, and the number of trucks is far from sufficient to ease the port congestion quickly.
The existing equipment such as forklift truck in the yard is far from meeting the demand.

Road congestion and access to the depot are difficult

Lagos, a city of 16 million people, suffers from poor infrastructure and severe traffic congestion, making it difficult for vehicles carrying containers to get in and out of the depot.
Due to the poor security situation, container vehicles dare not run at night, the transport efficiency is low.

The government is inefficient and cumbersome

At present, there are a total of 15 government agencies inspecting goods in the yard. The coordination among the agencies is poor, the information technology is backward, and the work efficiency is low.
Although the depot uses scanning equipment to inspect the containers, it still requires 100% open-box inspection for each batch of goods, which takes a lot of time.

Illegal traders evade taxes or import contraband

Illegal traders attempt to evade taxes or import prohibited goods by forging documents.
Once found to be unable to achieve the purpose, the illegal Ni merchant will abandon the goods and fled, the container piled up in the yard.

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Main cause of unattended delivery at destination port

First: according to the sales contract relationship, the buyer often because of suspected deterioration of goods, goods arrived at the port of destination after the decline in market value and other reasons and can not obtain the economic benefits of the contract refused to pay the redemption order.

Second: according to the relationship of the contract of transport, if the carrier violates the contract of bill of lading, the delivery of goods is delayed or the carrier fails to reasonably and prudently fulfill the obligation to manage the goods and the goods are damaged, the consignee may also choose to refuse to take delivery of the goods.

Third: the goods cannot be cleared and picked up due to changes in laws and regulations, trade policies, quarantine system and other reasons of the country where the port of destination is located.