Headlines

Vessels transiting Suez Carnal to pay more in 2022

Suez Canal, Egypt

—as Suez Canal authority announces toll increase amidst high traffic

—-exempts LNG carriers and cruise ships from tariffs increase

After an eventful year that saw the Suez Canal blocked by a large container ship and then a fight to recover fees before releasing the Ever Given, the Suez Canal Authority has now announced plans to implement a rate increase for nearly all vessels using the canal in 2022.

The announcement of the increase in fees comes as the canal has been experiencing record traffic.

Rates for vessels transiting the canal will be increased by six percent beginning in February 2022.

While the canal has benefitted dramatically from the increase in shipping volumes and the transit of new larger vessels, it has nonetheless also found itself facing increasing competition.

During the spring blockage, shipping lines elected to send some of their vessels around Africa while Russia heavily promoted the advantages of its North Sea Route. The Panama Canal has also been seeking to increase traffic, offering increasing competition with its tolls.

Admiral Osama Rabea, Chairman of the Suez Canal Authority, said in considering the rate increases, they carefully followed and scrutinized all the variables related to the shipping market, global economic indicators, and global trade movement.

He said that they sought to apply a balanced and flexible marketing and pricing strategy that fulfills the authority and its clients’ interests and takes into account the global economic conditions.

The rate hike, he explained, was balanced with International Monitory Fund and World Trade organization projections for global economic growth while allowing them to provide navigational services for transiting through the canal. He also compared their services to other competitive routes.

The Canal Authority, however, said that it would exempt both LNG carriers and cruise ships from the increase in tariffs.

The canal has seen a continuous seaborne trade for LNG but it is a very competitive market. During October, 84 LNG carriers transited the canal up from 46 the prior year with an 87 percent increase in tonnage. Going forward, the Authority is modifying rates for LNG carriers from 25 percent to 15 percent, starting this month.

Cruise ships, they said, had been the most affected by the COVID-19 pandemic, and the efforts are designed to support a restoration of the traffic. Similarly, the Panama Canal Authority is also considering proposals to adjust the rates for cruise ships to also support their return.

The decision to raise the tariffs came after the Suez Canal set a new record for transits during October. The number of ships was up 14 percent year-over-year with a total of 1,847 transits. Net tonnage was up more than 11 percent to 112.1 million tons, contributing to a 12 percent increase in revenues to over $551.1 million.

The Suez Canal recorded its highest ever daily transits on September 29, 2021. A total of 87 vessels made the passage totaling 4.8 million net tons. During the day, a total of 49 vessels were northbound while 38 made the southbound transit.

During the first ten months of 2021, the Canal saw a nearly nine percent increase in tonnage. A total of 17,020 ships made the trip versus 1,380 in the first 10 months of 2020.

The Authority is forecasting continued strong volumes in the coming year and says that it is prepared to manage the traffic. It is also continuing efforts to upgrade its operations and enhance the services of the canal.

Among the record traffic in October was the transit of the largest container ship, Evergreen’s Ever Act.

Freight Monitor

President Buhari to commission multi-billion naira Dala Inland dry port Monday –Ahmad Rabiu

The Eyewitness reporter

All is set for the commissioning of the Dala International inland dry port on Monday 31st January 2023 by President Muhammad Buhari at Zawachiki in Kumbotso local government area of Kano state.

The Managing Director of the international inland dry port Ahmad Rabiu, stated this while addressing newsmen on the preparation for the inauguration of the port at its headquarters in Kano.

Ahmad Rabiu, who was joined by the chairman of the inland dry port, Alhaji Abubakar Sahabu Bawuro, said its the first international inland dry port where cargoes will go anywhere in the world from Kano state without follow up to any sea ports across Nigeria.

Ahmad Rabiu told newsmen that the federal government under President Muhammad Buhari has given all the support required for the take-up, noting that they have met the requirement on infrastructure and other critical amenities.

The MD said the stacking area has the capacity of containing 20 thousand units of containers before moving anywhere at any time, noting that the area covers six hectares of land and the management is willing to add more.

According to Ahmad Rabiu, all the requirements needed for clearance by businessmen, and customs duty will be done right from Kano without follow-up to any seaport in Nigeria.

On his part, the chairman of Dala Inland Dry Port, Alhaji Abubakar Sahabu Bawuro said the management of the port is prepared technically, and physically with interested partners and is going to boost businesses in Kano, Nigeria and Africa in general and urged members of the press to partner with the management in ensuring efficiency, emphasizing that the place is not a monument but a business venture.

The chairman said Dala Inland Dry Port is now a solution to the problems brought about by the seaports and they will introduce cargo tracking and door-to-door delivery of goods and services.

He said the success of the inland dry port is a joint venture between the state government, the business community, regulatory agencies and the Federal Government of Nigeria and to make business in Kano and its neighborhood more competitive.

Freight Monitor

CRFFN rejects re-appointment bid of ousted Sam Nwakohu

Ousted CRFFN Registrar, Nwakohu

— appoints Uromta as Acting Registrar

—-shops for substantive Registrar.

The Eyewitness reporter

The Council for the Registration of Freight forwarding Practice in Nigeria (CRFFN) has thrown out the re-election bid of the outgoing Registrar of the Council, Sam Nwakohu.

In an emergency meeting of the council Thursday at its Abuja liaison office, the Council appointed Mrs. Chinyere Uromta, the Director of Regulations and Enforcement, as an acting Registrar pending the time a substantive registrar will be appointed.

The decision of the council to reject the reelection bid of the ousted Registrar was based on the recommendations of its ad hoc committee to look into the request of Nwakohu for a second term tenure.

The outgoing registrar, last year, at the December meeting of the council, submitted a letter, requesting to be considered for a second term shot at the lucrative position.

Consequently, the Chairman of the Council, Alhaji Abubakar Tsanni set up an ad-hoc committee, headed by Efeanyi Isikaku, to look into the request of Nwakohu and submit its report in two weeks.

“Following the completion of its assignment and submission of its report, the council, therefore, convened today (Thursday)in Abuja to deliberate on the next line of action to be taken in respect of the committee’s recommendations.

” The AdHoc committee made important recommendations with reference to the provisions of Public Service Rules as well as the council’s Act.

“The committee however, recommended that in order to avoid a vacuum after the expiration of the Registrar’s tenure, the council shall start making arrangements for a handover of the Registrar’s office to the most senior management staff of the council.

“Similarly, the committee also recommended that the Appointment Promotion and Discipline committee of the council be directed to start making preparations for reappointment or appointment of substantive Registrar” Muftahu Ya’u, the chairman Committee on Media and Publicity of the governing council, declared in a statement he sent to our reporter.

“Finally, the council’s chairman soon after the adoption, approval, and ratification of the committee’s recommendations by members of the council directed the followings:
that arrangement for the Registrar’s handover to Mrs. Chinyere Uromta Director, Regulations and Enforcement on 31st of January 2023.

“That committee on Appointment Promotion and Discipline go ahead to start preparations for reappointment/appointment of a new Registrar” the head of media and publicity of the council concluded.

It could be recalled that soon after Nwakohu made his ambition known to succeed himself as the Registrar of the council, he went on a lobbying spree, trying to woo the council members to buy into his ambition.

But sources close to the council whispered to our reporter that the second term bid of Nwakohu was dead on arrival due to lots of baggage he carries.

“There was no way he could have succeeded in his obnoxious bid to succeed himself.

Firstly, it was a general consensus among the freight forwarding confraternity that Nwakohu failed woefully as the registrar.

“He is incompetent, arrogant and someone not ready to learn,” a highly placed source said.

“Also, several allegations of financial sleaze against him have not been cleared.

“Similarly, the council members were not happy at the way Nwakohu handled the purchase of the CRFFN Abuja liaison office which cost they felt was inflated.

“All these and other uncharitable behavior of the outgoing registrar are enough reasons not to reappoint him as the Council registrar” the source claimed.

Headlines

Transportation ministry inaugurates project committee for Ondo, Benin seaports

The Eyewitness reporter

The Permanent Secretary of the Ministry of Transportation, Dr Magdalene Ajani, has inaugurated

a Project Steering Committee for the proposed Ondo Deep & Benin Seaports.

Dr. Magdalene Ajani, while inaugurating the Committee on behalf of the Nigerian government at the ministry’s headquarters in Abuja Wednesday, stated that the Committee is saddled with providing guidance and direction on the projects.

She also charged the members of the committee to also facilitate necessary permits, clearance & approvals for the projects.

The permanent secretary said it is also the responsibility of the committee to prepare the transaction for the Hon. Minister of Transportation, Alhaji Muazu Sambo, to obtain the approval of tte Federal Executive Council.

She charged them to hit the ground running immediately.