Stakeholders decry CMA CGM’s tariff hike, warn of dire economic impact

Stakeholders in the maritime and trade sector have expressed alarm over the sharp increase in local shipping charges by French shipping giant CMA CGM, describing it as a “rude shock” with serious implications for businesses and consumers alike.

CMA CGM, a key player in Nigeria’s shipping sector operating through the Apapa and Tin Can Island ports in Lagos as well as the Onne port in Rivers State, has raised its container charges significantly.

In a missive to Nigerian importers, the company justified the hike as a necessary adjustment following the Nigerian Ports Authority’s (NPA) recent increase in port and marine charges, which took effect on March 1.

“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 stated.

Under the revised tariff, the cost of a 20ft container has been pegged at N145,327, while a 40ft container will now be charged at N290,654.

Cost implications

Industry players have reacted with concern, warning that the abrupt increase will have far-reaching economic consequences. Emenike Nwokeoji, National President of the Association of Nigeria Licensed Customs Agents (ANLCA), through his Senior Special Adviser on Media, Sulaiman Ayokunle, told BusinessDay that the increment is unwelcome and will escalate operational costs across multiple sectors.

“It will increase cost of operation. Because once all these charges are increased, definitely it will increase total cost of either raw materials for industrial use or finished goods for market consumption,” the association said.

The association further warned that the cost burden will ultimately be transferred to consumers, exacerbating economic hardship.

“The implication is far-reaching and will get to the market member, the economy, and the downtrodden,” they said.

The association also criticised CMA CGM for failing to engage stakeholders before implementing the increase, stating that such decisions require prior consultation.

“If there is going to be any genuine and transparent increments because of either in terms of their services, they incur additional costs, or costs in terms of security, this should be made known to the stakeholders,” the association said.

“For anybody to increase [charges], it’s supposed to go through a medium. The medium is that stakeholders should be involved,” it said.

Read also:How Lekki Port berths CMA CGM Scandola, an LNG-power containership

A costly domino effect

ANLCA revealed that it had met with the Nigerian Shippers’ Council in February, yet there was no mention of the planned increment. “So, why coming up within a few days by CMA CGM to increase their local charges?” Ayokunle questioned.

Stakeholders fear that this move could trigger similar hikes by other shipping companies, compounding the financial strain on businesses already struggling with excessive charges.

“It has a multiplying effect on the economy. Because this is a sector that is already struggling to survive. We have too many charges,” said Ayokunle, referencing the Nigerian Customs Service’ introduction of a 4 percent Free on Board (FOB) charge which was eventually suspended.

“We made a lot of noise before they relinquished. And they said it’s been suspended. Anytime soon they might even come up again. Because everything looks silent now. They are not telling us anything,” he said.

Freight forwarders warn of inflationary pressure

The impact of CMA CGM’s decision extends to importers and exporters in Nigeria.

Frank Ogunojemite, National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), warned that the increase would will cripple the purchasing power of consumers and further increase the cost of doing business at Nigerian ports.

“The recent increment by CMA CGM will lead to higher prices for goods and services in Nigeria while making consumers experience reduced purchasing power due to higher prices,” he said.

“Higher shipping and terminal charges lead to increased costs for importers and exporters, which will be passed on to consumers,” he said.

Freight forwarders also raised concerns that higher logistics costs could erode business profitability, making Nigerian enterprises less competitive in global trade.

“This increment can also contribute to higher inflation rate in the country, forcing businesses to reduce staff or close operations due to increased costs.”

“NPA told us that the 15 percent hike will not lead to additional charges at the ports, but now the CMA CGM has blamed its recent increment on the hike in port tariff by the NPA. [It] must look into this price increment by the shipping companies before other shipping companies follow suit.”

Stakeholders are urging the NPA to intervene before other shipping companies follow CMA CGM’s lead.

“NPA told us that the 15 percent hike will not lead to additional charges at the ports, but now the CMA CGM has blamed its recent increment on the hike in port tariff by the NPA. [It] must look into this price increment by the shipping companies before other shipping companies follow suit.”