Haulage Cost Crashes By 157% At Lagos Port Amid Low Cargo Import

Due to low cargo imported into the country due to the high exchange rate and high cost of clearing cargo out of the port, the cost of moving already cleared containers out of the Lagos Seaports – Apapa and Tin-Can Island- has crashed by 157 per cent in the last one week.

LEADERSHIP gathered that a trip from Apapa seaport to Sango, Otta, Ogun State, has crashed from N900,000 to N350,000, thereby representing a 157 per cent crash in haulage cost.

Speaking to LEADERSHIP, a trucker, Yusuf Liadi, said that the cost reduction was due to low imports and the viability of the standard gauge rail line.

According to him, the majority of importers now prefer to move their already cleared cargoes through rail due to the cost.

“Last week, haulage of a 40ft container from Lagos Port to Sango was N900,000, but today, it goes for N350,000. The crash in price was a result of low import and usage of rail to move cargoes out of the seaports to Oyingbo or Sango.

“Ikeja that hitherto goes for N750,000 now goes for N250,000. “Also, the usage of badges by cargo owners has made prices drop drastically, but I hope the price comes up because the price doesn’t represent the current economic challenges.

Liadi, however, disclosed that for the past few months, it had been easy to secure codes for access to the port.

He also disclosed that trucks are at their various yards waiting endlessly to get a Terminal Delivery Order (TDO) for the evacuation of cleared cargoes.

“We have trucks at the port waiting for TDOs to access the seaports to haul cargo out of the seaports to the owner’s warehouse,” he said.

Also confirming the price drop, the chairman of the Lagos State Truck and Cargo Operators Committee (LASTCOC), Alhaji Lukman Shittu, said the price drop was due to the efficiency of the electronic call-up system operated by the Transit Park (TTP).

According to him, congestion on the port access road fuels an increase in haulage cost as well as when trucks are not released to the terminals.

“When there is a scarcity of trucks at the terminals, we have a few trucks chasing so many already cleared cargoes, so the price will go up, but anytime there is congestion, prices will automatically go up.

“Also, since it is easier to make bookings for e-call up and access the port seamlessly, haulage cost will automatically come down.

Importation is not low and I can tell you that about 100 trucks visit Lagos seaports every day, and we have trucks that drop export and move container cargoes out of the seaports as well.

He disclosed that there are lots of trucks there for people to evacuate imports out of the port.

“There is no day we don’t record over 100 trucks going into the various terminals. I have been to APM Terminals today, and I can tell you for free that there are lots of trucks there for people to evacuate imports out of the port.”

Also speaking, another trucker, Alhaji Alaba Asobiaro, said the drop was a result of the recently concluded Ramadan festival, and Eid-Al-Fitr was responsible for it.

He said the price had dropped drastically, saying he moves cargo from Apapa to Ikeja and Agege and has experienced a sharp price drop.

“We have been doing N600,000 for Ikeja, and now, it’s N200,000; also, Agege, which goes for N650,000, goes for N250,000,” he stated.

What makes haulage costs go up is when the Truck Transit Park (TTP) is not operating optimally when they don’t release trucks to terminals because of congestion.

If there are a lot of trucks trapped in their various terminals and the road is congested with trucks, truck owners who have exported to drop at the various terminals are the ones who make haulage costs for evacuation of containers high.

But currently, booking for trucks to access the seaports is going smoothly, with no hiccups, and there are a lot of trucks inside the terminal definitely, the price will crash.