Headlines

Shipping companies revenue may hit $500 billion in 2022

–— to earn $200 billion as profit— Drewry report

The maritime research consults, Drewry, has made a forecast for a huge harvest by the world’s containers carriers in 2022 as their operations are expected to gain marginal traction.

The carriers broke records in 2021 leading to reports of dramatic profit increases while the growth is expected to moderate in the year ahead, the companies are still forecast to show another year of record results.

Maritime research consults Drewry released its outlook for 2022 forecasting that higher carrier profits would drive industry sales past $500 billion for the first time in 2022, prompting Drewry to revise its earnings estimate to a staggering $200 billion for the full year.

“The gravy train kept on rolling for ocean carriers,” writes Drewry in its latest Container Forecaster report, noting that the industry “once again exceeded our expectations,” with its third-quarter 2021 reports.

Drewry estimates EBIT performance at $70.9 billion for the third quarter, “a staggering nine-fold improvement from $7.6 billion in the same quarter a year ago.”

Given that the industry was ahead of where they expected after nine months, Drewry had again upgraded its annual forecast for 2021 to $190 billion from its previous projection of $150 billion in profits.

They expect that the container carriers will show a profit margin of approximately 43 percent for the full year.

“The pandemic and ensuing supply chain crisis is the primary driver of the supercharged carrier profits and shares price bonanza,” says Simon Heaney, Senior Manager, Container Research at Drewry.

“In simple terms, the longer the congestion lasts, the longer that freight rates and carrier profits will stay extremely high.”

Among the factors they foresee for 2022 is a reduction in volatility in the spot market instead of expecting that the trend will continue to longer-term contracts, although they forecast they will be signed at much higher rates.

“On balance, Drewry thinks the bulk of risk from the highly unpredictable container market will reside with shippers in 2022,” says Heaney while forecasting that 2022 will be another year of severe disruption, under-supply, and extreme cost.

Drewry notes in its forecast that it would take all of 2022 to fix the supply chain already factored in some further Covid-related disturbance.

They believe that the emergence of Omicron added greater uncertainty to the market.

On the balance, they however believe that container demand growth is losing some momentum and that carriers will face further headwinds in the year ahead, creating the expectation for moderating growth.

Headlines

MARAN convokes national discourse on resurgence of maritime crimes in Gulf of Guinea

The Eyewitness Reporter

Worried by the recent resurgence of piracy incidents and security threats in the Gulf of Guinea (GoG) in the first half of 2023, the Maritime Reporters’ Association of Nigeria (MARAN) is dedicating the maiden edition of the MARAN Annual Lecture (MAMAL) 2023 to Maritime Security.

Mr Godfrey Bivbere, President MARAN, said this in a statement in Lagos.

According to Bivbere, the inaugural edition of MAMAL 2023 is themed: “Maritime Security: Emerging Threats and Actionable Steps” .

“The theme is targeted at proffering long-term, sustainable solutions that will effectively address maritime crimes in the GoG region and protect seafaring and fishing communities in the affected countries,” he said.

Recall that the International Maritime Bureau (IMB) report of July 2023 confirmed that the GoG witnessed a surge in maritime incidents in 2023, with five incidents in the first quarter and nine in the second quarter.

Out of these, 12 were classified as armed robberies and two as piracy, predominantly targeting anchored vessels in the region.

According to the IMB report, in these incidences, 14 crew were kidnapped, of which 8 crew members were taken from vessels anchored within the GoG territorial waters.

Additionally, in two separate hijackings, 31 crew members were held hostage, communication and navigation equipment were destroyed, and partial cargoes were stolen. One of these incidents also involved the abduction of 6 crew members.

He pointed out that MARAN, as the foremost umbrella body of journalists covering the Nigerian maritime sector, had identified and commended the collaborative initiatives and efforts of the Nigerian Navy.

The MARAN president noted that the initiative which was in partnership with other security agencies, the Nigerian Maritime Administration and Safety Agency (NIMASA), other regional navies and maritime administrations led to a significant reduction in piracy incidents on Nigerian waters and the GoG throughout 2022.

He said that to a large extent, the establishment of the Gulf of Guinea Maritime Collaboration Forum for the Shared Awareness and Deconfliction (GOG-MCF/SHADE) had enabled stakeholders within and outside the region to connect and discuss frequently how best to tackle piracy in the area and this yielded verifiable results.

Bivbere pointed out that the effective deployment of Naval assets, warships, Falcon Eye, the Deep Blue Project assets, establishment of the Suppression of Piracy and Other Maritime-related Offences Act 2019, among others are worthwhile accomplishments attributable to the Nigerian Navy in recent years.

He, however, said there was a need for consolidated efforts that would be explored at the summit.

“With the recent decision of China to join in the international anti-piracy effort in the Gulf of Guinea, MAMAL 2023 will also dissect the continuous presence of foreign navy frigates in the region for an evaluation of the positive impact and perceived threats.

“Following the recent extension of the Nigerian Exclusive Economic Zone (EEZ) from 200 Nautical Miles to 350 Nautical Miles, MAMAL 2023 will be highlighting the capability of the Nigerian Navy and other agencies in providing adequate security for the zone,” he said.

The MARAN president said that the MAMAL 2023 had been scheduled to hold on the 24th of October 2023.

The Nigerian Navy, regional navies and other stakeholders in the maritime sector including Shipowners, NIMASA, Shipping Lines, Terminal Operators, Nigerian Shippers Council, and major seafarers organisations are all expected to attend this epoch-making event.

Customs

Adeniyi, CGC, makes refresher course mandatory for officers ,matches them out on 5- kilometer fitness exercise in Abuja

Wale Adeniyi, Ag, CGC

The Eyewitness Reporter

The Acting Comptroller General of Customs, Adewale Adeniyi, has continued to motivate the men and officers of the service with his innovative programmes that are meant to enhance their efficiency and professionalism.

The latest initiative of the CGC, whose ascendancy to the top cadre of the Customs has continued to energize the service, was the introduction of programmes aimed at enhancing the mental and physical alertness of officers.

Consequently, Adeniyi has made refresher course for officers from the Superintendent cadre mandatory every five years.

He made this known during the passing out parade of Course 1/2023 at the Nigeria Customs Service Training College in Ikeja, Lagos on Friday, September 22nd, 2023.

Speaking to the 81 Cadets who have successfully completed their training and passed out of the Training College after six months of rigorous preparation, Adeniyi charged them to uphold the highest level of integrity and professionalism while discharging their lawful duties.

He congratulated the cadets on their successful completion of training and welcomed them into the service.

He expressed hope for a better service, equipped them with knowledge and skills, and urged them to make a meaningful difference in the nation.

He emphasized the importance of discipline, good conduct, and the highest level of integrity in their actions, reminding them that they represent excellence and the Nigeria Customs Service.

While the CGC, on Friday, September 22nd, 2023, in Lagos announced the mandatory refresher course for officers to enhance their mental alertness, he however led the officers on a fitness exercise the following day, Saturday, September 23rd, 2023, in Abuja to enhance their physical alertness.

At the 5- 5-kilometre marathon walk tagged “Work-Life Balance” the CGC posited that the exercise was aimed at keeping officers physically and mentally fit to enable them to face their constitutional duties effectively.

The fitness exercise commenced in the early hours of Saturday, 23 September 2023, from Customs Headquarters Wuse Zone 3 to the newly built Customs House in Maitama Area, all in Abuja — the Federal Capital Territory.

The exercise was seen as one of the Ag. CGC’s strategic approach to enhance the agility of the officers and men of the Nigeria Customs Service.

It involved officers and men of the Service, including members of the Management Team, and Representatives of Military and Paramilitary Institutions.

Adeniyi said that the physical exercise attests to the Customs’ commitment to consolidate on critical areas of national development, knotting ties with stakeholders and embracing technological innovations.

“As officers and men, we come under lots of pressure to fulfill various obligations, and most of the time, these pressures come from our workplaces — emanating from the nature of our tasks, which are usually physically and mentally demanding; thus, the exercise will help reduce such pressure for us and enhance our productivity at work,” he said.

According to him, the Nigeria Customs Service had, over the past 15 years, established 32 clinics and medical centres all over the country to take care of the officers’ health, adding that “as we embark on this journey, it is vital to understand the essence of this initiative and why we need to flag it off.”

He motivated them to continue to engage themselves in extra exercises such as jogging, mountain hiking, dancing and all other curricular activities while also urging them to embrace the work-life balance as it will continue to improve their health and also contribute to enhancing the efficiency of the Service.

The Customs Chief also mentioned that the exercise will facilitate the unity and love between Customs officers across the federation, saying that “participating in this brisk walking exercise fosters friendship and unity and sense of shared purpose amongst us.”

The brisk walking exercise was attended by Deputy Comptroller-Generals of Customs in charge of different Units, Assistant Comptroller-Generals, and all Comptrollers down to Assistant of Customs III. Other participants who graced the ‘Walk-Life Balance’ exercise were from the Ministry of Investment, Trade and Industry, Nigerian Correctional Center, Immigration Service, National Drug Law Enforcement Agency, and Nigeria Army.

Headlines

NIMASA set to open Lokoja office to harness waterways resources

The Eyewitness Reporter

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has disclosed that the Agency is set to reopen the Lokoja office, as part of efforts towards harnessing the Blue Economy, enhancing collaboration, while also promoting Research and Development.

The DG, who made this known when he played host to the Executive Secretary of the Kaduna State Emergency Management Agency (KADSEMA), Mal. Usman Hayatu Mazadu at the head office of the Agency in Lagos, noted that investment in research would play a major role in ensuring the harnessing of Nigeria’s maritime potentials.

“The key cardinal principle of opening the NIMASA Lokoja office is to improve on Research and Development.

“Our goal is to establish the nexus in maximizing the use of available resources in the nation’s inland waterways and the deep blue waters within 28 states, spanning over 4000 kilometers of inland waters and over 200 nautical miles of ocean resources; with the coming of the Ministry of Marine and Blue Economy.

He said, “Now, the Blue Economy has come to stay and very soon you will see the impact of what we have; in terms of the gains and benefits to grow our Gross Domestic Product while improving the well-being of our own Economy”.

Earlier in his remarks, Mallam Usman of KADSEMA lauded the Agency for the feat achieved so far, which cuts across the entire Nigeria.

While seeking cooperation with the Agency in possible areas, he expressed the readiness of KADSEMA to support the Agency in areas that may be deemed possible.