Aftermath of NPA Tariff Increase: CMA CGM Hikes Charges on Nigerian Cargoes

—As APFFLON Condemns Increase

By DAPO OLAWUNI

There is palpable anxiety among freight forwarding practitioners in Nigeria as a foreign shipping company; CMA CGM has slammed increased charges on Nigerian cargoes in response to the recent 15% hike in port tariff by the Nigerian Ports Authority (NPA)

Recall that the NPA recently announced an upward review in its tariffs which was last reviewed in the year 1993. However, the NPA had assured that the upward review will not affect item rates like
1. throughput and lease fees.
2. Rents on NPA Landed Properties
3. MOWCA levy
4. Service Boat operations
5. Hourly towage and mooring charges.
In response to this, the CMA CGM on Thursday, March 6, 2025 informed all stakeholders of a review of its charges.

“We are writing to inform you of a review of our charges following the recent increase in Port and Marine charges implemented by the Nigerian Ports Authority (NPA), which came into effect 01 March 2025.

“As a result of such adjustment, we find it necessary to update our tariff structure to account for the new cost environment, effective 10 March 2025” the company said in a message.

According to the shipping company, under the review, a 20ft container will now be charged N145,327 while a 40ft container will attract N290,654.

A 20ft Reefer container will attract N145,327 while a 40ft Reefer container will attract N290,654.

In swift reaction, the Africa Association of Professional Freight Forwarders and Logistics (APFFLON) on Monday 10th March 2025 condemned the hike in charges by CMA CGM, even as it blamed the Nigerian Ports Authority.

President of APFFLON, Otunba Frank Ogunojemite argued that shipping and terminal charges are critical components of the logistics and supply chain management process. Increases in these charges can have far-reaching effects on various stakeholders, including higher shipping and terminal charges leading to increased costs for importers and exporters, which may be passed on to consumers.

“Businesses may experience reduced profit margins due to higher logistics costs.
Increased costs can make Nigerian businesses less competitive in the global market.

“Increased shipping and terminal charges can lead to higher prices for goods and services. Consumers may experience reduced purchasing power due to higher prices.

“Sustained increases in shipping and terminal charges can contribute to inflation.
Increased shipping and terminal charges can reduce economic growth by increasing costs and reducing competitiveness.

“Increased unemployment: Businesses may be forced to reduce staff or close operations due to increased costs.
Decreased economic activity can lead to reduced government revenue.

“Shipping and terminal companies may experience increased revenue due to higher charges”