Blue Economy
$4,000 War Surcharge: MSC Shipping Move Threatens Nigeria’s Maritime Sector, Stokes Inflation Fears
$4,000 War Surcharge: MSC Shipping Move Threatens Nigeria’s Maritime Sector, Stokes Inflation Fears
By Okeoghene Onoriobe | News Correspondent, Waterways News (www.waterwaysnews.ng)
A wave of anxiety is sweeping through Nigeria’s maritime industry following the decision by MSC Mediterranean Shipping Company to impose a war risk surcharge of up to $4,000 on cargo shipments bound for Nigeria and other African countries — a development industry stakeholders warn could trigger a fresh round of inflation and deal a severe blow to the nation’s already stressed trade ecosystem.
MSC announced on its website that effective March 5, 2026, until further notice, it will apply the surcharge on all cargo moving from the Arabian Peninsula — including Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE — to West Africa, East Africa, South Africa, Mozambique, and the Indian Ocean Islands.
The charges are structured as follows: $2,000 for 20-foot containers, $3,000 for 40-foot containers, and $4,000 for refrigerated (reefer) cargo.
“The evolving security situation in the Middle East is affecting maritime traffic in the Straits of Hormuz and Bab El-Mandeb and causing disruption throughout our network,” MSC stated, adding that it is working with relevant authorities to ensure the safety of its operations.
Industry Voices Alarm
Maritime and trade experts who spoke with Waterways News expressed serious concern over the ripple effects the surcharge will have on Nigeria’s import-dependent economy.
Former acting National President of the National Association of Nigerian Licensed Customs Agents, Mr. Kayode Farinto, said the surcharge was largely inevitable given the deteriorating security situation along key shipping routes.
“Any shipping company bringing cargo will want to charge. Most insurance companies are already dropping policies because of this war, and the routes are being taken over by Iran. So shipping lines are being forced to manoeuvre and take alternative routes — possibly through South Africa — which increases costs,” Farinto explained.
He warned that the consequences would be far-reaching: cargo volumes will decline, freight rates will climb, and the prices of goods will rise as importers pass on overhead costs and insurance premiums to consumers. He added that products from the Dangote Refinery could also be affected, with the full impact expected to be felt more acutely in the coming weeks.
Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, was equally blunt in his assessment.
“It’s going to affect trade significantly. Cost has already gone up and may go higher. If costs rise that much, trade volumes will drop — and that means less business for the maritime industry, job losses, loss of income, and a whole lot of issues that will cascade through the sector,” he said.
Manufacturers Sound Export Warning
The manufacturing sector is also bracing for impact. Dr. Benedict Obhiosa, Secretary of the Manufacturers Association of Nigeria Export Group, said the surcharge would erode the competitiveness of Nigerian-made products in international markets.
“The hike in prices will discourage exports and affect the volume and value of non-oil exports in the current and possibly the next quarter, if the problem is not resolved by the Nigerian government and shipping authorities,” Obhiosa said. He noted, however, that some exporters may pivot to road transport as an alternative.
Freight Forwarders Demand Government Intervention
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has described the surcharge as a major economic shock that could deepen Nigeria’s vulnerability as an import-dependent nation.
In a strongly worded statement, APFFLON’s National President, Frank Ogunojemite, warned that Nigeria — which relies on maritime transport for over 80 percent of its international trade — faces sharp increases in the prices of food and pharmaceuticals, with reefer containers carrying frozen foods, dairy products, fish, and medicines bearing the heaviest burden.
Ogunojemite called on the Federal Government, the Ministry of Marine and Blue Economy, the Nigerian Shippers’ Council, and other maritime regulators to urgently engage international shipping lines and global maritime stakeholders to cushion the impact of the surcharges on Nigerian trade.