Shipping Companies’ Tariff Increase Followed Rigorous Process – Association

The Shipping Association of Nigeria (SAN) has explained the reasons behind the recent upward review of tariffs by shipping line agencies operating in the country, insisting that the increase followed a rigorous regulatory process and reflects prevailing economic realities.

SAN clarified in a response dated March 16, 2026, to a letter from the National Association of Government Approved Freight Forwarders (NAGAFF) Trade Advocacy Committee, which had opposed the tariff adjustment approved by the Nigerian Shippers’ Council (NSC), the port economic regulator.

In the letter signed by SAN chairman, Boma Alabi, the association acknowledged the concerns raised by freight forwarders. Still, it maintained that some of the claims made by NAGAFF did not accurately represent the regulatory process that preceded the approval or the operational realities of international shipping operations in Nigeria.

Alabi stressed that the tariff adjustment was neither implemented unilaterally by shipping lines nor granted arbitrarily by the regulator.

According to her, the Nigerian Shippers’ Council conducted an extensive review before approving, including detailed cost analysis submitted by shipping line agencies, an assessment of prevailing economic conditions such as inflation and foreign exchange volatility, as well as stakeholder consultations carried out over an extended period.

She added that the review process lasted nearly two years and involved several rounds of regulatory scrutiny before the final approval was granted.

“It is therefore inaccurate to suggest that the approval was granted without due consideration of the statutory regulatory framework,” Alabi said.

She explained that the adjustment merely represents a partial cost recovery measure, considering the sharp rise in operational costs across the maritime sector in recent years.

Alabi also clarified that the approval was not granted across the board to all shipping lines, noting that it did not amount to a blanket increase for every operator.

According to her, the adjustment approved by the Shippers’ Council is modest and significantly lower than Nigeria’s cumulative inflation rate within the same period.

“In practical terms, the adjustment does not represent a real increase in economic terms but rather a limited adjustment intended to partially offset the impact of rising operational costs,” she said.

She listed some of the cost drivers to include increasing port and terminal charges, administrative and regulatory compliance costs, exchange rate fluctuations, and logistics and operational overheads.

Alabi further noted that the tariff review reflects broader developments across the maritime and logistics sector, where several service providers have adjusted their charges in response to economic pressures.

She pointed out that truck operators, freight forwarders, clearing agents, terminal operators and other logistics service providers have all increased their rates in recent years.

“In this context, it would be unrealistic and inequitable to expect shipping line agencies alone to maintain static rates despite operating under the same economic pressures,” she said.

The SAN chairman also dismissed insinuations that shipping lines exercise collective market dominance, stressing that the global liner shipping industry is highly competitive.

According to her, shipping companies compete independently in freight pricing and service delivery while constantly striving to improve operational efficiency and attract cargo volumes through better service offerings.

She added that several operational challenges cited by NAGAFF – such as port congestion, container return logistics, documentation bottlenecks and operational delays- are systemic issues within the entire port ecosystem and cannot be attributed solely to shipping line agencies.

Alabi explained that port operations involve multiple stakeholders including port authorities, terminal operators, customs and regulatory agencies, freight forwarders, and trucking and logistics providers.

She therefore called for collaborative efforts among stakeholders to address the challenges rather than placing responsibility on a single segment of the logistics chain.

On allegations of regulatory infractions, the SAN chairman said the claims referencing laws such as the ICPC Act and the FCCPC Act appear speculative and are not backed by formal regulatory findings.

She maintained that shipping line agencies operating in Nigeria remain under the oversight of several government institutions and continue to comply with all applicable statutory and regulatory requirements.

Alabi reiterated that the tariff adjustment approved by the Nigerian Shippers’ Council followed a lengthy regulatory process that carefully reviewed cost structures, economic conditions and stakeholder input.

According to her, the decision was aimed at ensuring the sustainability of maritime services while maintaining fairness within the port economic framework.

She added that since the approval was granted by the Shippers’ Council in its regulatory capacity, the agency is best positioned to address any further concerns regarding the tariff review.

Copies of SAN’s response were sent to the Executive Secretary and Chief Executive Officer of the Nigerian Shippers’ Council, Pius Akutah, and the Managing Director of the Nigerian Ports Authority (NPA), Abubakar Dantsoho.

Meanwhile, Chairman of the NAGAFF Trade Advocacy Committee, Dr Increase Uche, called for calm among stakeholders, saying the association’s intervention was not intended to create conflict but to promote responsible sectoral reforms.

He said the group’s position was aimed at supporting the federal government’s Renewed Hope Agenda and ensuring that port reform policies deliver tangible benefits within the maritime sector.

Uche maintained that tariff increases must be justified by measurable improvements in service delivery and operational efficiency.
He argued that such improvements have not been evident since the last tariff increase granted to service providers about two years ago.

According to him, macroeconomic factors such as inflation, exchange rate volatility and diesel costs are not the primary issues under consideration by the freight forwarders.

He added that NAGAFF remains concerned about operational deficiencies among some multinational shipping lines, including delays in the refund of container deposits, which he alleged could involve trillions of naira.

Uche stressed that freight forwarders play a critical role in the nation’s trade ecosystem as they operate at the intersection of cargo movement, customs processes and international supply chains.

He warned that unless operational bottlenecks and inefficiencies affecting cargo clearance are addressed, the association would continue to oppose the current tariff increase.

The NAGAFF committee chairman also said the group possesses evidence to support its claims and will maintain its position until the concerns raised are adequately addressed by shipping line agencies and other stakeholders in the port system.