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major shipping lines have withdrawn their vessels and diverted same to other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.”News,Technology,Fashion, Beauty, Gossip, Lifestyles, Entertainment, Events, and Sports
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