Shipping Lines Blamed For Empty Container Backlog In Nigerian Ports

Shipping Lines Blamed For Empty Container Backlog In Nigerian Ports

Fwdr.Dr.Eugne Nweke,Head , Research,Sea Empowerment Research Center(SEREC)

By Frank Odinukaeze

Shipping lines operating in Nigeria have come under intense scrutiny for the growing environmental and logistical crisis caused by the dumping of empty containers at Nigerian ports. This concern was highlighted in a report released by the Sea Empowerment and Research Center (SEREC), shedding light on the staggering number of abandoned containers, estimated between 65,000 and 100,000 Twenty-foot Equivalent Units (TEUs), currently littering port terminals across the country.

According to the report authored by Eugene Nweke, Head of Research at SEREC, over 97% of laden containers shipped into Nigeria are not returned to their origin ports, resulting in a critical buildup of empties. “Freight forwarders have consistently raised the alarm, and our findings confirm the seriousness of the issue,” Nweke said.
The report attributes the primary reason for the mass abandonment to the high cost of freighting empty containers back to origin ports in Europe, Asia, the U.S., and the Middle East. Depending on various market factors, returning a 20ft container from Nigeria to China costs between $2,000 and $4,000, while the return cost for a 40ft container can rise as high as $6,000. For Less than Container Load (LCL) shipments, rates vary between $150 and $500 per cubic meter.

SEREC estimates that for a standard container ship with a 4,500 TEU capacity, the total cost to return empties could exceed $9 million—an unsustainable financial burden for many carriers. As a result, shipping lines often sail away with minimal export cargo, leaving behind thousands of uncollected containers.
The backlog of empty containers not only affects port operations but also presents environmental and public health hazards. Of particular concern is that 45% of these containers are reportedly “lickety,” or unseaworthy, posing a greater risk within the logistics chain.
To resolve the issue, SEREC has outlined several potential solutions. These include encouraging Nigerian exporters to increase outbound shipments, improving port infrastructure, and developing efficient container return mechanisms. The organization has also called on shipping lines, port authorities, and relevant government agencies to collaborate on sustainable container management strategies.

Furthermore, the report draws attention to the implications of the Customs Act 2023, which classifies containers under temporary importation. “After a three-month grace period, these containers are subject to import duties,” Nweke warned, urging shipping lines to act within the legal framework to avoid sanctions.
As Nigeria continues its drive toward trade efficiency and port modernization, SEREC’s findings underscore the urgency of addressing the container congestion crisis. Stakeholders are being encouraged to act decisively, not only to reduce financial losses but also to safeguard the environment and restore order in the shipping industry.