Headlines

Maersk records $6.8billion in Q1 2022

Maersk reported its best-ever quarter in Q1 2022 with a $6.8bn profit despite taking a $718m hit from pulling out of Russia.

Operating results hit record levels across Maersk’s ocean, logistics and services, and terminals segments.

Maersk said its ocean segment’s result was fuelled by strong contract rates boosting freight rates; logistics and services were supported by increased volumes and better margins.

Terminals’ result was driven by higher volume and storage income in North America.

This all added up to a $6.8bn profit in Q1, compared to $2.7bn in the same period in 2021, for the Danish shipping company.

First-quarter revenues were up 55% on-year to $19.3bn.

The lion’s share of a $6.9bn increase in revenue, some $6.1bn, came from the ocean segment of Maersk’s business.

The ocean segment reported a 6.7% decline in loaded volumes, driven by lower backhaul volumes in Europe and North America, said Maersk.

Loaded volumes fell across East-West, North-South and intra-regional trades, but were offset by an average 71% increase in freight rates to $4,553 per feu.

At the same time, costs were higher with an average increase in bunker prices of 54% between Q1 2021 and Q1 2022, bringing prices to $611 per tonnes.

“Freight and charter rates remained elevated in the container industry, reflecting congestions, although a gradual decline was recorded for spot/short-term contracts during Q1 relative to Q4 2021, in line with the deterioration of supply-demand,” Maersk said in its Market Insights.

“The continued congestions and dislocation of supply and demand fundamentals in the logistics industries increases the uncertainty surrounding the rates outlook.

On the demand side, a reduced impact from the COVID-19 pandemic should support the global economy, but the composition of spending is likely to rebalance towards services, and sharply rising prices for some goods may lead consumers to adjust their spending plans.”

Maersk continued its acquisition binge in the quarter, and completed its purchase of Pilot Freight Services.

Outstanding acquisitions include LF Logistics, expected to close in Q3, Senator International expected in Q2 2022, and a JV with Grindrod Intermodal Group expected in close in Q3 2022.

Maersk decided in the wake of Russia’s invasion of Ukraine to completely withdraw from Russia.

Its last cargo operation in a Russian port was completed on May 2.

The biggest impact on EBIT was $485m on terminals, followed by $162m on the ocean, $53m on logistics and services and $18m on towage & maritime services.

Maersk’s withdrawal from Russia includes divestment of shares in Global Ports Investments, the exit of two Russian warehouses, and an end to Svitzer towage services in Sakhalin.

Maersk restated its updated guidance issued on April 26 of a $30bn underlying EBITDA for 2022.

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.

Freight Monitor

Prince Nwokeabia rallies support for Comptroller Ukpanah, CAC Enugu/Anambra/Ebonyi\command, as she assumes office

Prince Nwokeabia,

The Eyewitness Reporter

The Chairman of the Enugu chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Alex Nwokeabia, has rallied the support of his members and other stakeholders in the chapter for the new Customs Area Controller of Enugu/Anambra/Ebonyi Area Command, Compt. Comfort Senas Ukpanah as she assumed duty in the command.

In his congratulatory message to the new controller, Prince Nwokeabia, while welcoming Comptroller Ukpanah to the Enugu Customs Command, expressed confidence in the capacity of the new CAC to further drive the command to new heights of success.

The freight forwarder, who described the new CAC as a thoroughbred Customs officer who rose through the rank, believed that Comptroller Ukpanah would consolidate and surpass the achievements so far recorded in the command.

Prince Nwokeabia, while congratulating the new CAC on her deployment to the command, assured her of the readiness of the members of the Enugu ANLCA to support and work for the success of her tenure.

”I, Prince Alex Nwokeabia, on behalf of all the members of the Association of Nigerian Licensed Customs Agents, Enugu Chapter, welcome our new Area Controller, Comptroller Comfort Senas Ukpanah, to her new post and wish her a successful tenure.

“The Enugu ANLCA wishes to assure her of our unflinching support and readiness to work with her and her team to ensure the successful implementation of her mandate” the ANLCA Chieftain declared.

Comptroller Ukpanah assumed office as the new Customs Area Controller of Enugu/Anambra/Ebonyi Area Command on Friday 15th September, 2023.

She took over from Comptroller AM Adegbite who was re-deployed to Edo/Delta Area Command.

Customs

Customs, UN agency collaborate to fight smuggling

The Eyewitness Reporter

The anti-smuggling efforts of the Nigeria Customs Service has received a boost with the support of the United Nations agency,

United Nations Human Settlements Programme, UN—Habitat.

The Customs got the assurance of collaboration from the UN agency on Tuesday, September 19, 2023, when the acting Comptroller General of Customs, Adewale Adeniyi hosted the ambassadors of the global agency led by Dr. Raymond Edoh in his office.

Adeniyi told his guests that the Service, under his watch, will implement every necessary action against saboteurs of Nigeria’s economy to cripple their ‘illegitimate’ business of smuggling.

“On behalf of the entire Management Team of the Nigeria Customs Service, I wish to inform you that we will partner with you in this campaign, and we will grant you all forms of support you may need to carry out this campaign — and I want to assign one of our amiable DCGs, Abba Kura, to work with you closely.”

He appreciated how they traveled from afar to inform the Nigeria Customs Service of their campaign against smuggling, which, according to him, the Nigeria Customs Service has already started yielding positive results in suppressing the menace of smuggling.

The CGC also welcomed Dr Raymond’s offer to engage officers and men of the Service in capacity—building to enhance their understanding of digital literacy skills, adding that the Service has already started embracing technology to advance its work by introducing related courses to officers.

The CGC appreciated the collaborative effort between the Nigeria Customs Service and UN—Habitat and believes that the collaboration signifies a commitment to tackling smuggling and enhancing trade facilitation in the nation, setting the stage for a more prosperous future.

“What we’re trying to do is to raise a modern Customs Service through partnering with stakeholders to achieve our goals because we value partnership, and I am happy that you extended your hands of collaboration to work with us.”

He also appreciated their pledge to train officers and men of the Service in digital literacy skills, assuring that the Service will continue to prioritize proficiency in the fight against smuggling through a technological approach.

He underscored the importance of digital skills, promising that the relevant Service department will enhance trade facilitation.

On his part, the Director of UN—Habitat, Dr. Raymond Edoh, appreciated President Bola Ahmed Tinubu for reposing the responsibility of heading the Nigeria Customs Service on the Acting Comptroller-General, describing him as “a competent Customs officer who knows the terrain and masters the job.”

According to him, they decided to visit the Ag. CGC at the Customs Headquarters to express their interest in partnering with the Service.

He appreciated the Service for being a “gatekeeper of the country” that protects citizens against border threats, stressing that his organization will collaborate with NCS to mitigate the smuggling of illicit goods and train officers and men of Customs on digital literacy skills and certification.

UN-Habitat is the United Nations entity responsible for developing urban policies and translating them into action to create sustainable cities and promote viable urban development and adequate shelter for all.