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Home » SEREC Condemns Street-Style Shutdown of Shipping Company, Blames Regulatory Failure

SEREC Condemns Street-Style Shutdown of Shipping Company, Blames Regulatory Failure

By Oluyinka Onigbinde

by Joshua
January 13, 2026
in Featured, News

Eugene Nweke
Eugene Nweke

The Sea Empowerment Research Center (SEREC) has condemned the shutdown of business operations at the Mediterranean Shipping Company (MSC) Apapa office by members of the Association of Nigeria Licensed Customs Agents (ANLCA), Western Zone, describing the action as unprofessional, legally risky, and symptomatic of deeper regulatory failures within Nigeria’s port cost regime.

SEREC’s condemnation followed the decision by ANLCA Western Zone to shut down operations at the MSC Apapa office on Monday in protest against what the association described as arbitrary and excessive increases in shipping line charges, which it warned could further fuel inflation in an already fragile economy.

Yesterday, aggrieved freight agents reportedly trooped to the MSC Apapa premises in large numbers, disrupting business activities at about 1:35 p.m. The protesters demanded an immediate reversal of the recent hike in charges, threatening that the shipping company would remain shut from 6:00 a.m. on Tuesday and on subsequent days until the former tariffs were restored.

In a position paper titled “On Professional Industrial Advocacy, Regulatory Accountability, and Sustainable Port Economy Governance in Nigeria,” signed by Eugene Nweke, Head of Research at the Sea Empowerment Research Center

SEREC acknowledged that concerns over rising shipping and ancillary port charges are legitimate and widely shared across the maritime value chain. The research and advocacy group noted that shipping charges have increased sharply over the years, often without corresponding improvements in service quality or operational efficiency.

According to SEREC, many of the traditional cost drivers cited by shipping companies  including foreign exchange volatility, energy costs, and operational risks have either stabilised or moderated, raising questions about the sustainability and justification of continued tariff increases. It warned that unchecked port charges have inflationary consequences, directly affecting import costs, consumer prices, business survival, and Nigeria’s competitiveness in regional and global trade.

However, SEREC argued that physical shutdowns, street-style enforcement, and obstruction of business premises are inconsistent with the standards of a modern maritime industry.

 

It cautioned that such actions expose practitioners and associations to legal, civil, and reputational risks, while undermining years of effort to reposition freight forwarding as a regulated, professional, and knowledge-driven occupation.

The group further stated that the disruption of operations at shipping company offices creates collateral damage for cargo owners, importers, and indigenous businesses, while diverting attention from the substantive policy and regulatory failures that allow shipping charges to escalate without effective oversight.

SEREC emphasised that industrial advocacy in the maritime sector should be anchored on structured engagement, evidence-based pressure, and institutional mechanisms rather than physical confrontation. It called for data-driven negotiations supported by cost benchmarking, regional comparisons, and transparent cost analysis, alongside coordinated advocacy through joint communiqués, unified demands, and clearly defined negotiation frameworks.

The research centre also stressed that industrial action should follow graduated escalation processes, including formal petitions, regulatory complaints, arbitration requests, and lawful service withdrawal where necessary, noting that protest actions should be a last resort rather than an opening strategy.

Identifying regulatory failure as the core issue behind recurring disputes over shipping charges, SEREC said the absence of firm, transparent, and enforceable economic regulation has enabled arbitrary pricing, weak cost justification, and abuse of dominant market positions by service providers. It urged the relevant economic regulator to assert its statutory mandate by instituting tariff review and approval frameworks, enforcing cost transparency, and mandating stakeholder consultation before price adjustments.

The group also criticised lapses in professional regulation within the industry, noting that inconsistent enforcement of standards and ethics has allowed disorderly conduct to persist. It said a credible professional regulator must promote lawful and civil engagement, sanction actions that undermine industry credibility, and lead advocacy through institutional channels rather than street-level enforcement.

Calling on regulators to “live above board,” SEREC urged economic and professional regulatory agencies to act transparently and independently, resist regulatory capture, and proactively engage stakeholders. It warned that when regulators fail to act decisively, pressure is often redirected to the streets — an outcome it described as damaging to industry stability and economic sustainability.

As part of its recommendations, SEREC called for the immediate suspension of street-style shutdowns and physical enforcement actions, the establishment of an Industry Shipping Charges Review Forum involving regulators and key stakeholders, and the development of a national port cost benchmarking framework. It also proposed mandatory cost-justification disclosures by shipping lines for any tariff adjustments, stronger enforcement of professional conduct standards, and the institutionalisation of dispute resolution and arbitration mechanisms.

In its conclusion, SEREC said Nigeria’s maritime industry does not lack grievances but suffers from a deficit of effective regulation and structured engagement. It stressed that while advocacy remains a legitimate tool, the manner of protest is as important as the cause, warning that sustainable solutions lie in credible regulation, responsible leadership, and collective discipline rather than confrontation.


Tags: SEREC

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