On the back of a crash in freight rates and declining volumes, three major shipping lines have withdrawn their vessels from Nigeria and diverted to other routes.
The shipping lines, Japan’s Nippon Yusen Kaisha (NYK Lines), Taiwan’s Evergreen Line, and Messina Line were forced to withdraw due to increasing losses over the past four months.
“It is a serious situation; it is not only that the traffic is down, the freight rates have virtually collapsed. Importers are finding it difficult to pay for their imports because the local currency is continuing to weaken against the US dollar,” Shipping Association of Nigeria chairman, Val Usifo, was quoted by Nigerian newspaper Vanguard News as saying.
