Maersk, MSC, Others See Trade Boom As US Lifts Nigeria Shipping Curbs

Some international shipping lines operating in Nigeria have projected increased trade and business opportunities following the United States Coast Guard’s (USCG) removal of the 12-year Condition of Entry (COE) imposed on vessels originating from Nigerian ports and destined for the United States.

The shipping companies, including Maersk, Mediterranean Shipping Company (MSC), Pacific International Lines (PIL) and Ocean Network Express (ONE), described the development as a boost to Nigeria’s maritime security credentials, global shipping reputation and trade prospects.

They said the removal of the restriction would ease trade with the United States, improve shipping operations and create opportunities for more direct services between both countries.

Reacting to the development, one of the world’s largest shipping companies, Maersk, said the US decision would strengthen Nigeria’s position in global shipping trade and encourage operators to explore expansion opportunities.

The Terminal Planning Lead, West Africa (WAF), Srijesh Subramanian, described the development as a welcome move that would benefit importers and exporters while improving confidence in Nigeria’s maritime environment.

“This is a welcome move which will enable better trade both for the importers as well as the exporters because we have quite a lot of exports going on, lots of Nigerians in the US. Shipping companies will be a little more bold in their expansion plans for the future. With the US removal of the Condition of Entry (COE), it is saying that Nigeria looks more like a safer environment than previously perceived,” he said.

Subramanian said the lifting of the restriction reflected improved confidence in Nigeria’s maritime security, urging relevant authorities to sustain the gains.

Similarly, the Nigeria Director of Ocean Network Express (ONE), Mr Stefan Pedersen, congratulated Nigeria on the development, saying it could make direct trade with the United States easier.

Although ONE does not currently operate direct services to the United States, Pedersen said the removal of the restriction would benefit shipping companies offering direct sailings between the two countries.

“Congratulations to Nigeria on the lifting of the Condition of Entry. It shows the work that NIMASA has been doing all these years has actually paid off, so that is good. At the moment ONE does not have any direct sailings to and from the US so we are not really impacted by this. I’m certain that it would make direct trade with the US through the ports easier. When restrictions go away, it usually improves trade, so for our colleagues in the industry that have direct sailings to the US, it’s going to make it easier,” he said.

Also, Pacific International Lines (PIL) welcomed the decision, saying it would improve Nigeria’s image as a credible player in the global maritime industry.

The Managing Director of PIL, Mr Ugo Opiah, said the removal of the restriction was a positive signal about Nigeria’s progress in maritime security.

“I think it’s a very good one in terms of the image. Of course, the US is categorized as one of, let’s say, the big brother of the world, and most times if you do qualify for things that concerns the US, then you are seen as a high-integrity player. So for Nigeria, with this being lifted after the number of years that it had been on us, it does give a good sign that we have upped our game in terms of anything to do with security in the maritime industry,” Opiah said.

Meanwhile, Mediterranean Shipping Company (MSC) said the restriction had affected its operations through delays and the need for trans-shipment, expressing optimism that its removal would create opportunities for more direct shipping services.

The company’s Vessel and Terminal Coordinator, Mr Adesina Omoparuwa, said the restriction had required shipping lines to route some cargo through trans-shipment ports rather than directly to their destinations.

“Because of this restriction, we have to do some trans-shipments. We do not have direct services to the US like we have now in China. Basically China’s service that we have now, we didn’t have them before, we have to go through trans-shipment ports, but now with this development, it will give us more direct service from the US and opportunities for people that are doing business from the US to come directly down to Nigeria,” he said.

The US Coast Guard’s removal of the Condition of Entry on vessels that have visited Nigerian ports within their last five port calls and are destined for the United States brings to an end 12 years of enhanced security requirements for such vessels.

The development marks a significant milestone in the federal government’s efforts to strengthen maritime security, improve port competitiveness and enhance Nigeria’s standing in the global maritime industry.