Headlines

Maersk Essen losses 750 containers overboard on Pacific voyage

Maersk has reported a loss of 750 boxes of 13,092 TEU in one single voyage in the pacific.

The Maersk Essen was sailing from Xiamen, China to Los Angeles when it is reported to have encountered severe weather on 16 January.

Maersk said that all the crew members were safe and the vessel had continued on its voyage and a detailed assessment of cargo damage was ongoing.

Marine claims consultancy WK Webster in a report on its website, “It is reported that up to 750 containers may have been lost overboard and it is therefore also very likely that some containers will have collapsed or been damaged in the affected stacks, but remain on board. These containers will need to be removed or repositioned.”

The incident with the Maersk Essen follows the ONE Apus which lost 1,816 containers in the Pacific on 30 November, as well as a number of smaller incidents involving the loss of containers in recent months.

The loss of containers has been put in sharp focus and came at a time when vessels are loaded to the maximum given huge surge in the growth of shipments in the second half of the year.

SeaIntelligence Consulting founder Lars Jensen commented in a LinkedIn post, “Is this a fluke twice in a row – or a sign that we might actually have a structural problem with stowage when vessels are consistently filled to the brim?”

A number of P&I insurers are running webinars in relation to the safe storage of containers.

The number of containers lost overboard in both 2020 and now 2021 are set to exceed the average of 1,382 containers were lost per year between 2008 and 2019 according to the World Shipping Council.

Headlines

NIMASA to dilute higher interest rates charged by PLIs on CVFF loan to less than 10 percent rate

–– as beneficiaries have eight years tenor to pay back with interests

Funso OLOJO

But for the determination and insistence of the Nigerian Maritime Administration and Safety Agency (NIMASA), to ensure that the Cabotage Vessels Financing Funds (CVFF) loan is given to beneficiaries at a single digit interest rate, the 12 Primary Lending Institutions (PLIs) are not ready to disburse the loan below 10 percent rate.

As a matter of fact, all the 12 PLIs insisted on giving out their own 35 percent equity shares at an interest rate above single digit.

That was their insistence after several months of negotiations with NIMASA.

Mr Yusuf Buhari, the financial consultant to the CVFF, said as much when he declared that the cost of 35 percent equity contribution of the PLIs was above single digit interest rate.

At the one- day stakeholders interactive forum on operationalization of CVFF, held in Lagos on Monday, May 12th,2025, Buhari said there was no way the PLIs would have lent their 35 percent equity below the cost of the fund.

“We would not expect them(PLIs) to lend below their cost of fund.

” The 35 percent equity of the PLIs will be above single digit based on their risk assessment” the financial consultant declared.

However, determined to break the jinx which has over the year bedevilled the disbursement of the CVFF and the desire not to give the loan out above single digit interest rate, the present leadership of NIMASA, with the permission of the Minister of Marine and Blue Economy, Adegboyega Oyetola, agreed to serve as a buffer for the beneficiaries by agreeing to dilute the higher interest rates insisted on by the PLIs with its own 50 per cent equity contribution and lower the rate to below 10 percent.

Buhari attested to NIMASA’s sacrifice

” However, what is the diluting factor here is the 50 percent equity share that comes from NIMASA.

” That is strategic. When you add the cost of funding from the PLIs and the cost of funding from NIMASA, we expect that it would not exceed the single digit interest rate.

“This negotiation, calculation will be done before approval letter is issued to the beneficiaries of the loans”

” We would ensure that it will be part of the responsibility of NIMASA to ensure that whatever interest rate your bank is giving you, when diluted by NIMASA’s 50 percent contribution, will be an agreeable rate that will not exceed the single digit interest rate.

” The single digit weighted rate is our target” Buhari declared.

Sources whispered to our reporter that the present management of NIMASA had to bend backward to accept the tough conditions of the bankers as it didn’t want the negotiation to get stalled once again.

It could be recalled that it was at this stage of fixing the interest rate with the initial five PLIs hitherto engaged by NIMASA that the negotiation broke down during the tenure of the estwhile NIMASA DG, Dr Bashir Jamoh.

During that period, the PLIs insisted that they could not offer their own 35 percent equity contribution at single digit interest rate, a position the former NIMASA management opposed, insisting on less that 10 percent interest rate.

” The negotiation later broke down when the two parties maintained their hardline positions.

It was this same hardline position the 12 PLIs brought to the table when negotiations resumed on disbursement process with the present management of NIMASA led by Dr Dayo Mobereola.

Sources further claimed the expansion of the PLIs numbers from initial five to 12 was meant to break their resolve to charge above single digit .

Unfortunately, this strategy did not work as the bankers insisted they could not offer interest rate below the cost of funds they are contributing.

Determined to disburse the funds after several years of delays, the incumbent leadership of NIMASA had to abandon the hardline posture of its predecessor and agreed to the terms and conditions of the PLIs while deciding to use its 50 percent equity contribution as a buffer to dilute the higher interest rates charged by the PLIs.

Meanwhile, Mr Buhari, the financial consultant to the Funds, revealed that each of the successful bidders for the Funds is at liberty to approach any of the 12 approved PLIs to negotiate for a favourable rate that would be brought to NIMASA which will dilute whatever the rate it is to below 10 percent.

By implication, it is obvious that the 12 PLIs will charge different interest rates, which is above 10 percent,while the beneficiaries will get the rate from the PLIs according to his bargaining power.

But what is constant, according to Buhari, is that no matter the rate each of the beneficiaries get from their banks, the loan will be given to them at below 10 percent interest rate, thanks to NIMASA.

“The beneficiaries could use any bank among the 12 PLIs, the one that offers best terms and conditions.

” Negotiate your rate of 35 percent with the banks.

” Whatever rate you get from your bank will be diluted by NIMASA to bring it down to a single digit interest rate.

” The interest rate will be worked out on case to case basis.

” The PLIs will give different rate which would be dependent on their risk assessment but NIMASA will dilute it to less than 10 percent interest rate” Buhari maintained.

In addition, Buhari disclosed that eight years tenor period is given by the banks for the beneficiaries to pay back the loan.

The eight years tenor is the cap period as this could be less, according to the terms and conditions of the banks.

Again, this presupposes that the bargaining power of each of the beneficiaries of the loan will come to play when negotiating for a favourable tenor which will not exceed eight years.

Those with weak bargaining power may get shorter tenor for loan repayment.

Headlines

NSC flaunts achievements at ministerial retreat for agencies heads in maritime industry

–– saves FG N31 billion within six months in 2024

— pushes for quick passage of Nigerian Port Regulatory Agency Bill

Funso OLOJO

The Nigerian Shippers’ Council(NSC) has showcased its achievements during this year’s ministerial retreat in Abuja.

Addressing the gathering which comprised the Minister of Marine and Blue economy Adegboyega Oyetola, Permanent Secretary of the ministry, Olufemi Oloruntola and heads of maritime agencies and other dignitaries, the Executive Secretary of the Country, Pius Akutah disclosed that the agency has saved the Federal government a whooping sum of N31 billion between January and June 2024 through automation of demurrage, freight rate, and charter party verification.

Akutah , who called for critical policy and funding reforms, highlighted some of the achievements of the Council which include but not limited to commissioning of the Funtua Inland Dry Port, top-ranking performance in the 2024 ICPC Ethics and Integrity Scorecard, the launch of online registration portals for port users and service providers and the development of the Trade and Transport Data Bank now nearing completion.

He emphasized the need for swift passage of the Nigerian Port Regulatory Agency Bill and consistent access to statutory funding.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, who declared the retreat open, stated that the Marine and Blue Economy sector had been placed at the forefront of the Federal Government growth agenda and that agencies must respond with measurable performance and improved service delivery.

The Minister also noted several milestones achievements over the year, such as modernization of port infrastructure, steady improvement in port efficiency, progress on the National Single Window, commencement of Cabotage Vessel Financing Fund disbursement, noting that the recent approval of the National Policy on Marine and Blue Economy, marked a new phase in the sectorial development.

He outlined key imperatives for sectoral transformation, including inter-agency synergy, digitalization, governance, and environmental responsibility.

As the retreat progresses, agency heads are signing performance bonds anchored on specific Key Performance Indicators (KPIs), reinforcing a shared commitment to measurable results and transparency.

Headlines

Opeifa decries incessant attacks on railway facilities by vandals

— enjoins host communities to regard infrastructures as national assets

Funso OLOJO

The Managing Director of the Nigerian Railway Corporation, Dr. Kayode Opeifa,

has decried the rate at which NRC facilities are being attacked by criminal elements.

Dr. Opeifa was reacting to two separate vandalism attacks on the Warri Itakpe line and another attack at Oghaho Section, Nkanu East LGA, Enugu State in the Eastern District.

At the Warri Itakpe line, if not for the quick response of the NRC management, the line would have suffered another suspension of operations.

Following a report from the community vigilante group of track vandalism at Agbarho Community, Ughelli North LGA of Delta State, the Railway track and safety officers were quickly dispatched to verify the report and do the needful for safe passage of the train.

Arriving at the site, the men discovered that from km 250 Agbarho – Okpara Section had been vandalized and the hold down bolts and clips made away with by the hoodlums.

The Railway crew promptly replaced all that were vandalized and the track has been confirmed safe for the passage of trains.

Because of that unfortunate incident, WITS 01 of 12th May 2025 experienced a 40 minutes delay in departure.

In another sad development, this time around, in the Eastern District of the Corporation, following a reported case of vandalization by PTO (HO) of two spans on bridge No.24 at KM284 (Oghaho section) Nkanu East LGA, Enugu State, Eastern District, a team of Railway Policemen and engineering crew were despatched from Enugu to the site on Monday, May 12th, 2025 on an assessment and security watch.

On getting to the site, the men discovered that a whole length of (Bridge 24) heavy frames were cut into pieces by the criminals, using oxygen and escetelen.

While the vandals had fled, the long spans bridge beams were met on ground and efforts are being made to recover them.

According to the reports from officers in charge of the area, the location is largely inaccessible due to long history of insecurity and banditry which had made most communities along this rail corridor to relocate.

While commending the effort of the security agencies so far in stopping this economic sabotage, Opeifa encouraged them to redouble efforts as his administration is ever ready to support them in dealing with the challenging task of securing railway facilities across the country.

He specifically thanked the Agbarho Community Vigilante Group for having an eye on the NRC track.

The NRC boss therefore called on other communities to emulate the Agbarho Community Vigilante and begin to own Railway facilities in their communities as they are national assets.