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Shipping firm slams $250 per TEU surcharge on Nigeria-bound cargoes

By Guardian Nigeria
30 April 2023   |   5:25 am
CMA CGM has announced an Overweight Surcharge (OWS) from Asia and India East Coast to Nigeria that takes effect from April 28, 2023.The French ocean carrier said that Nigerian importers will pay an overweight surcharge of $250 (about N115,000) per TEU (Twenty foot Equivalent Unit) on dry containers....

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CMA CGM has announced an Overweight Surcharge (OWS) from Asia and India East Coast to Nigeria that takes effect from April 28, 2023.The French ocean carrier said that Nigerian importers will pay an overweight surcharge of $250 (about N115,000) per TEU (Twenty foot Equivalent Unit) on dry containers with a container gross weight equal to or more than 18 tons from China, South East Asia, North East Asia, and the East Coast of India to Apapa, Tin-Can and Onne ports.
 

 
CMA CGM said that the surcharge would be applicable to short-term contracts of three months and below.
  
Meanwhile, the President of the Nigerian Chamber of Shipping Aminu Umar, has recently said that the freight rate increased to 70 per cent as 50 per cent of foreign trading vessels exited Nigeria waters in the past 16 months.
 
Umar, while speaking on the prevailing challenges in Nigeria’s shipping industry said that insecurity and policies are responsible for exiting foreign vessels from Nigeria waters. He explained that the development had led to a scarcity of ships in the West African region, shutting up the freight rate.
  
According to him, there is a more robust market for vessels in Europe than Africa due to the ongoing Russia-Ukraine war.
 
“About 40 to 50 per cent of vessels plying the Nigerian waters have returned to Europe between 2022 and date. So 40 per cent of the capacity has moved back to Europe.
 
“The truth is that these are foreign-owned vessels trading within the West African sub-region, which includes Nigeria.
 
“So what it means is that it has created scarcity which will increase the freight rate. So the freight rate has gone up by almost 70 per cent due to this. There is a 70 per cent increase in freight rate, which went up to 100 per cent before but has reduced to 70 per cent.”
 

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