The nation's maritime sector is set to experience its greatest challenge in history over the spread of COVID-19 pandemic.
Investigations by Shipping Position Daily have revealed that due to the deadly pandemic, the cargo throughput for the first three months of the year is already reducing drastically as against the figure for the same period 2019.
Data from the Nigerian Ports Authority revealed that Nigerian ports recorded a total cargo throughput of 18.8 million Metric Tonnes in the first three months of 2019.
The ports received a total of 1,045 vessels with Gross Registered Tonnage of 32.97 million tonnes.
The major mode of trade for the first quarter 2019 was by sea and the leading port of operation was Apapa port, which accounted for N4.06tn or 89.6 per cent of total export transaction.
Although Shipping Position Daily could not get the detailed information for the Cargo throughput for the first quarter of 2020, however freight forwarders and customs examination officers have confirmed that the cargo throughput for 2020 is reducing drastically as against 2019, a s a result of the global pandemic of COVID-19.
According to the National Bureau of Statistics (NBS) third quarter report, it has been predicted that Nigerian port industry in the second quarter of the year, would suffer decline in ship traffic and a drop in the volume by 31.34 per cent, 11.35 per cent and 7.49 per cent of the nation’s total imports and exports originating from Nigeria to other countries
The bureau also predicted that this would be largely due to the aftermath of Coronavirus outbreak in China, United States of America, and India, which happens to be Nigeria’s major trading partners
But, opinions of freight forwarders and Customs examination officers were that the cargo throughput for the quarter under review is less than 15.4 million tonnes as against 18.8 million tonnes in the corresponding year.
You will recall that all major agencies in the nation’s maritime industry, namely: Nigerian Port Authority (NPA) to the Nigerian Maritime Administration and Safety Agencies (NIMASA) down to Nigerian Shippers’ Council (NSC) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) shut down activities last week, owing to the spread of COVID-19.
Reacting, the Director General Lagos Chamber of Commerce and Industry (LCCI) Mr. Muda Yusuf, posited that with the slump in the global economy coupled with the drastic reduction in imports owing to the outbreak of the deadly disease, the maritime sector will be greatly affected as he explained that due to the Covid-19 Pandemic which has also affected production in other countries, the chances of exporting have drastically reduced.
He stressed that the revenue and activities of the maritime sector is driven by the volume of imports and added that the pandemic has cost the country to lose billions of naira since its outbreak late last year.
“Naturally, with the slump in the global economy and with the drastic reduction in imports, definitely the maritime sector will be affected because revenue and activities of the maritime sector is driven by the volume of imports,
“Two factors account for this, first the corona virus has affected production in other countries outside our own country, talking about the exporting countries, raw materials, machineries and all of that, many of those countries have shut down their factories, some are on lock down, so the chances of even exporting to us has drastically reduced.
“Secondly the exchange rate depreciation, the foreign exchange to do the import has reduced drastically because of the situation, so forex is not as available as before to import, so those two factors are very critical to the activities in the maritime sector.
“That has implications for all the operators in the sector, and it also has implication for customs revenue at the port which will definitely affect the whole country”.
Speaking also on how the deadly pandemic has affected the maritime industry, especially in the area of supply chain Dr. Obiora Madu Chief Executive Officer and Programme Director of Multi-Mix Academy, in a telephone chat with our correspondent lamented that the outbreak of the virus has affected every section of business including the supply chain industry which he described as the success of any business.
Madu expressed grief that the shipping industry is already in trouble, stating that about 90 percent of world cargo travel by sea, he said with the outbreak, countries are quarantining their ships and their crew which has greatly affected the supply chain.
According to him, “the impact affect every section of business, and of course supply chain is the success of any business; no matter the kind of business, so the supply chain has been hit very badly, even when it started in China, the effect was felt around the world, because China is the largest manufacturer in the world, largest exporter in the world and largest trader in the world”.
He added that, “right now the shipping industry is also in trouble because we know that about 90 percent of world cargo travel by sea ,right now countries are quarantining ships and their crew and of course you know what that means, aviation is the worst because with international airport shut the implication is worst” .
The President of Shippers’ Association of Lagos State; Rev Jonathan Nicol, on his part said that the outbreak of the virus will not only affect number of ship calls into Nigerian ports, but also volume of import coming into the country.
On importers’ cargoes (including Nigeria), stranded in Asian countries, he said that there is nothing anybody can do now to help them because Coronavirus is a global thing.
Nicol urged Federal Government to follow what other countries are doing to protect their ports from Coronavirus so as not to allow the country to be littered with so many cases that it cannot handle.
Also speaking, the National President, Council of Managing Directors of Licensed Customs Agents (NCMDLCA); Mr Lucky Amiwero said that the Coronavirus will have serious impact on the nation’s ports revenue, adding that in the next two months, there is going to be a drastic drop in revenue.
According to him, Nigeria Customs and other government generating revenue agencies should not be looking at revenue for now, they should be looking at security and how people can be safe that is what is happening all over the world.
On his part, the President of the Association of the Nigerian Licensed Customs Agents (ANLCA); Mr. Tony Iju Nwabunike also stated that the corona virus has impacted negatively on the maritime industry stating that the Federal Government have lost multi billion naira since the outbreak.
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