Following a crash in freight rates, three major shipping lines have
withdrawn their vessels and diverted same to other routes in the past
four months. Due to crashing freight rates, it has become unprofitable
for shipping lines to operate along the Asia-West Africa routes.
The
shipping firms, Nippon Yusen Kasha popularly known as NYK Lines
(operated by Japanese), Taiwan’s Evergreen Line, and Messina Line, were
forced to withdraw from the West Africa route due to growing losses as a
result of the twin jeopardy of low freight rates and declining volumes.
The top Japanese shipping line had operated the Asia-West Africa
service, which it dubbed WAX, alongside Hapag-Lloyd and Gold Star Line
(GSL).
The service featured two calls in Nigeria, Lagos-Apapa
and Lagos-Tincan. Evergreen Line has also announced the withdrawal of
its vessels from the Asia-West Africa route, which had regular calls at
the Lagos Port Complex Apapa. Hull Blyth Nigeria Limited, which acts as
shipping agent to Evergreen Line confirmed the withdrawal of the service
to the media. Managing Director, Hull Blyth, Christian Holm, said:
“After three years of serving the market, Evergreen decided to
discontinue their service due to losses sustained due to widening
disparity between rate levels and costs. “Rate levels, especially from
Asia, have fallen over 50 per cent in the period with the cost levels
remaining disproportionate.” Speaking in similar vein, Chairman,
Shipping Association of Nigeria, (SAN) Mr. Val Usifo, described the
development as a dire situation. He said: “The withdrawal of shipping
services by these firms does not affect Nigeria alone but the entire
region. “It is a serious situation; it is not only that the traffic is
down, the freight rates have virtually collapsed. Importers are finding
it difficult to pay for their imports because of the restriction in
dollar.”
Read more at: http://www.vanguardngr.com/2016/02/3-major-shipping-lines-quit-nigeria-as-freight-rates-crash/
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