Shipping firms defend freight hike, cite inflation and FX pressures

By Godwin Oritse

The Shipping  Association of Nigeria (SAN) has defended the recent increase in shipping and freight charges, attributing the adjustment to persistent inflationary pressures and volatility of the Naira against the US dollar and other foreign currencies. The association maintained that the rising cost environment has significantly impacted operational expenses across the maritime sector.

Responding to opposition from the National Association of Government Approved Freight Forwarders (NAGAFF), SAN said the tariff adjustment approved by the Nigerian Shippers’ Council (NSC) followed a rigorous regulatory review process that spanned nearly two years, with extensive stakeholder consultations.

In a letter dated March 16, 2026, addressed to Dr. Increase Uche, Chairman of the NAGAFF Trade War Advocacy Committee (NTWAC), SAN Chairman, Boma Alabi (SAN), stated that the opposition was largely due to limited understanding of the regulatory procedures and operational realities of international liner shipping.

She explained that the tariff was neither arbitrary nor unilaterally imposed by shipping lines, but the outcome of detailed cost submissions, economic assessments, and multiple layers of regulatory scrutiny by the Nigerian Shippers’ Council in its role as Port Economic Regulator.

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

Alabi emphasised 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.

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

The SAN chairman further pointed out that 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.

She argued that it would be inequitable 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.

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

The post Shipping firms defend freight hike, cite inflation and FX pressures appeared first on Vanguard News.