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Shipping costs soar as Ukraine war hits maritime trade: UNCTAD

The war in Ukraine is one of the major issues affecting international maritime transport, compounding other challenges such as the Covid-19 pandemic and port congestion, and contributing hugely to higher shipping costs, says a report by the United Nations Conference on Trade and Development (UNCTAD).

For instance, the Russian Federation and Ukraine are prominent players in agrifood markets, including animal feed.

 Together, they account for 53 percent of the global trade in sunflower oil and seeds, and 27 percent in wheat.
In all, 36 countries import over 50 percent of their wheat from the Russian Federation and Ukraine alone, the report, titled ‘Maritime Trade Disrupted — The War in Ukraine and Effects on Maritime Trade Logistics’, says.

Gokaran Singh Pawar, General Manager-Sales of edible oil company Sunpure, says prices of edible oil shot up in the past few months due to multiple global factors, including the ongoing Ukraine war, resulting in supply chain disruption.

 The prominent trade route along the Black Sea is yet to be operational again. The prices increased by 50 percent barely a few days after the war broke out, he said.

Not just oil, but other products have been impacted too, says the UNCTAD report.

 Ukraine exported around 50 million tonnes of grain in 2021.
Before the war, estimates projected growth of 3 percent in global sea exports of grain, but this is set to shrink by 3.8 percent by end-2022.

Global shipments of fertiliser and its inputs such as potash are projected to drop by 7 percent in 2022.

Reduced grain exports from Ukraine are partly offset by increased shipments from other suppliers.
 For example, Brazil is expected to increase its wheat and coarse grain exports by an impressive 37 percent in 2022.
Together, Great Britain, Northern Ireland and the EU are set to expand their exports by 8 percent during the year.
Soyabean exports are expected to increase from Argentina, Brazil and the US.

Grain prices and shipping costs have risen since 2020, but the war has exacerbated this trend and reversed a temporary decline.

 Between February and May 2022, the transport cost for dry bulk goods like grains increased by nearly 60 percent.
The resulting increase in grain prices and freight rates would lead to a nearly 4 percent increase in consumer food prices globally.
 Almost half of this impact is due to higher shipping costs.

The Russian Federation is also a leading oil and gas exporter. In the face of trade restrictions and logistical challenges, the cost of oil and gas has increased as they have to be sourced from other places that are far away.

Higher energy costs have led to higher marine bunker prices, thereby increasing the shipping costs for all sectors.

By the end of May 2022, the global average price of very-low-sulfur fuel oil had increased by 64 percent, as against the start of the year.
These increased costs imply higher prices for consumers and threaten to widen the poverty gap, the report said.

If global trade is to flow more smoothly, Ukrainian ports should be opened up to international shipping.

Alternative transport routes must also be pursued. And investment in transport and trade facilitation should be fostered, including support for the most vulnerable economies, the report said.

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Headlines

Marine Platforms hails impact of Cabotage regime on indigenous shipping 

—as NIMASA reiterates its commitment to its implementation

Funso OLOJO, Editor

The Federal Government has reaffirmed its commitment to using Nigeria’s Cabotage regime to deepen indigenous participation in the maritime sector, with the Nigerian Maritime Administration and Safety Agency (NIMASA) declaring the development of local shipping capacity a priority.

The Director-General of NIMASA, Dr. Dayo Mobereola, stated this during an inspection tour of the African Pioneer Lagos, a specialised offshore Diving Support Vessel (DSV) operated by Marine Platforms Limited.

The visit, according to the NIMASA DG, underscored the growing capacity of Nigerian-owned and Nigerian-flagged vessels to undertake highly specialised offshore operations that were traditionally dominated by foreign operators.

The African Pioneer Lagos, with IMO Number 9808613, is a Nigerian-flagged DSV measuring approximately 143 metres in length, with a deadweight of about 8,000 metric tonnes.

The vessel is equipped for specialised deep-water subsea construction, diving, inspection and offshore oil and gas operations.

Mobereola said he was impressed by the vessel’s capabilities, stressing that Nigerian-flagged vessels with such capacity should enjoy priority in the nation’s maritime space.

“I’m quite happy at what I have seen today after the tour of this 8,000 metric tonnes African Pioneer Specialised Vessel.

“A vessel such as this flying the Nigerian flag should have priority over any foreign vessel.

“We are automating the Nigerian Ship Registry to make it more attractive and to ensure that more vessels like this fly the Nigerian flag.”

The NIMASA boss said improving the attractiveness and efficiency of the Nigerian Ship Registry was critical to encouraging more shipowners to register their vessels under the Nigerian flag.

He added that strengthening the Cabotage regime remained central to the Federal Government’s efforts to build indigenous shipping capacity and ensure that Nigerian companies and professionals occupy a greater share of opportunities in the country’s maritime and offshore sectors.

For the Chief Executive Officer of Marine Platforms Limited, Mr. Taofeek Adegbite, the company’s experience demonstrates the impact that the Cabotage regime and Nigerian Content legislation can have on indigenous shipping companies.

Adegbite said Marine Platforms had benefited significantly from the policy since acquiring its first vessel, Mt. African Vision, in 2012.

He said the company was proud to operate its vessels under the Nigerian flag and encouraged other Nigerian shipowners to embrace the Nigerian Ship Registry.

“Since 2012, when we got our very first vessel, ‘Mt. African Vision’, we are happy and proud to say NIMASA’s Cabotage Regime and the Nigerian Content Development and Monitoring Board Act has played a major role in ensuring that our vessels have contracts on a regular basis.

“We have no regret flying the Nigerian flag and I will invite more ship owners to register their flags in the Nigerian Ship Registry.”

Adegbite, however, called for greater attention to the classification and certification of crews operating large and highly specialised vessels.

“At the moment, we would appreciate a classification in such a way that the crew who are operating very big vessels are given special attention so that more very large vessels can fly the Nigerian flag,” he said.

He commended NIMASA for its support, stressing that the African Pioneer Lagos demonstrated that Nigerian companies and maritime professionals possess the technical capacity to operate sophisticated vessels to international standards.

According to him, the continued development of Nigerian-flagged vessels would also create greater opportunities for indigenous maritime manpower and professional development.

Adegbite said Nigeria could learn from countries that had successfully developed specialised niches within the global maritime industry.

He cited the Philippines, which has established a strong global reputation in seafaring, and Norway, renowned for shipbuilding, arguing that Nigeria could equally develop a globally recognised area of maritime specialisation.

He stressed that sustained government policies, effective implementation of the Cabotage regime, access to finance, appropriate regulation and development of maritime manpower would be essential to achieving that objective.

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Headlines

MAMAL 2026: Anishere, Ani demand stronger maritime media, more women in leadership

Gloria Odion, Maritme reporter 

President of the Maritime Arbitrators Association of Nigeria (MAAN), Chief Jean Chiazor Anishere, SAN, and President of the Women’s International Shipping and Trading Association (WISTA) Nigeria, Dr. Odunayo Ani, have called for a stronger and more professional maritime media and greater representation of women in leadership and decision-making positions across Nigeria’s maritime and blue economy sectors.

The two industry leaders made the call at the 4th Annual Maritime Lecture of the Maritime Reporters Association of Nigeria (MARAN), where they stressed that credible journalism and inclusive leadership were critical to ensuring accountability, transparency and sustainable growth in the maritime industry.

Represented at the event by Mrs Oyeyemi Jimi-Salami, Anishere said an informed, independent and professionally grounded maritime press was indispensable to the development of the sector, particularly as Nigeria intensifies efforts to unlock the economic opportunities inherent in the Blue Economy.

She commended MARAN for its sustained engagement with critical maritime issues and what she described as its commitment to responsible reportage.

According to her, the association’s annual lecture had become an important platform for industry stakeholders to interrogate emerging challenges, exchange ideas and seek practical solutions to the problems confronting the maritime sector.

Anishere noted that although sound policies, effective regulation and infrastructure investment were essential to maritime development, these could not deliver the desired results without a knowledgeable media capable of educating the public, scrutinising government policies, promoting transparency and demanding accountability from industry players.

She urged MARAN to continue using its platform to promote professionalism, innovation, accountability and sustainable development in the maritime industry.

“Journalism remains a key pillar of a vibrant maritime sector because it strengthens public confidence, supports informed decision-making and ensures that critical industry issues receive the attention they deserve,” she said.

Meanwhile, Ani called for a fundamental shift in the approach to women’s participation in the maritime industry, arguing that it was no longer sufficient merely to promote inclusion without creating clear pathways for women to attain leadership and decision-making positions.

She said WISTA Nigeria would continue to expand its mentorship, networking, advocacy and leadership development programmes to equip women with the skills, experience and opportunities required to advance in the sector.

Ani challenged government agencies, private-sector operators and other maritime stakeholders to go beyond rhetoric by recruiting, retaining, promoting and sponsoring qualified women, while adopting inclusive workplace policies and setting measurable targets for gender diversity.

She also called for concerted action against discrimination, unequal access to opportunities and unsafe workplace practices which, she said, continued to impede the advancement of women in the maritime industry.

The WISTA Nigeria president further urged male professionals and industry leaders to become active allies in promoting gender equality by mentoring, sponsoring and advocating for women in their organisations.

Ani stressed that women should not be regarded as mere participants in Nigeria’s maritime development but as critical drivers of innovation, leadership and sustainable economic growth.

She argued that providing women with equal opportunities to lead and contribute would not only advance fairness but also strengthen Nigeria’s ability to fully harness the enormous economic potential of its maritime and blue economy.

The speakers’ interventions at the MARAN lecture underscored the growing recognition that Nigeria’s maritime transformation requires not only infrastructure, policy and investment, but also a credible media that can hold the industry to account and a leadership structure that draws fully on the talents of both men and women.

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Commentaries

Blue Economy Engine: Decoding unstoppable rise of Nigeria’s maritime gateways

Monday Discourse with Ibrahim Nasiru

The latest operational data from Nigeria’s maritime sector shows a significant shift in trade capacity that deserves close attention.

In a period where national economic discourse is heavily focused on foreign exchange stability and trade balance, the Nigerian Ports Authority (NPA) recently released its operational performance report for the second quarter of 2026.

The figures indicate clear, measurable progress across our major shipping channels.

Under the current management led by Dr. Abubakar Dantsoho, total cargo throughput at the nation’s seaports grew by 12.3% year-on-year, moving from 31.83 million metric tonnes in the second quarter of 2025 to 35.74 million metric tonnes in Q2 2026.

This growth was closely supported by a 14.4% increase in ocean-going vessel traffic, which recorded 1,201 vessel calls during the three months under review.

These statistics are notable because they reflect actual operational changes rather than mere administrative adjustments.

For decades, Nigerian Ports were held back by slow container clearing times, heavy bureaucratic red tape, and severe traffic congestion around the Lagos Ports.

The current upward trend shows that the ongoing efforts toward Port modernization, including the digital integration of the National Single Window system, are beginning to show results on the ground.

By reducing physical bottlenecks and shortening the time cargo spends at the berths, terminal operations are becoming more reliable for international shipping lines and domestic businesses alike.

A highly encouraging aspect of the Q2 2026 data is the 22% increase recorded in export-related outward cargo.

For an economy that urgently needs to diversify away from absolute reliance on crude oil revenues, this rise in export volumes shows that the policy of establishing dedicated export terminals is functioning as intended.

Local manufacturing concerns, agricultural aggregators, and non-oil exporters are finding it relatively easier to move their goods out to global markets.

Additionally, the emergence of transshipment container traffic—which grew to 29,038 TEUs this quarter from zero in the same period last year—proves that Nigeria is regaining its position as a major logistics transit hub for the West African sub-region.

However, the report also highlights a persistent structural reality that economic planners must continue to address.

Out of the 35.74 million metric tonnes of cargo handled, inward cargo or imports still accounted for the larger share at 56.8%, while outward cargo stood at 41.9%.

While the gap is closing due to the 22% export growth, it reminds us that maritime efficiency must be backed by a strong domestic production base.

The Ports can only serve as efficient gateways; the real value lies in ensuring that what leaves our shores consists of processed, value-added Nigerian goods rather than just raw agricultural products or unrefined solid minerals.

The second-quarter performance numbers show that the maritime sector is currently serving as a stable and productive engine for the nation’s broader economic goals.

It demonstrates that clear policy direction and disciplined institutional management can stabilize critical national infrastructure even during periods of global trade volatility.

As the NPA works to sustain this momentum through the rest of the year, the priority must remain on full automation, eliminating unreceipted costs at the Ports, and strengthening rail connectivity to the hinterland.

By locking in these operational gains, Nigeria is steadily turning its maritime gateways into solid pillars of long-term commercial prosperity.

Chief Ibrahim Nasiru, a public affairs analyst, writes from Abuja 

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