ALERT: Prices of imported goods may rise over rate hike by shipping companies

The prices of imported goods might increase after companies like Maersk and Mediterranean Shipping Company, have announced a hike in rates.

Both companies attributed the increased rates to increased bunker fuel prices which are a result of higher oil prices.

The fuel used to power ships is known as bunker fuel.

For a country like Nigeria, which depends on importation for machinery, fuel and other items, this might lead to increased prices.

The eventual impact on consumers is now in the hands of importers who may decide to absorb increased costs or increase retail prices.

However, the increased rates will affect the landing cost of petrol and other petroleum products.

Crude oil prices have returned to 2014 highs on rising tensions between the US and Iran after the former backed out of a nuclear deal.

Maersk is the world’s largest container ship and supply vessel operator and Mediterranean Shipping Company is ranked the second largest.

Maersk said the emergency bunker surcharge will take effect from June 1.

“The increase (in bunker fuel prices) is more than 20 percent compared with the beginning of 2018 and this unexpected development means that it is no longer possible for us to recover bunker costs through the standard bunker adjustment factors,” Maersk said in a note to customers.

“This unexpected development means that it is no longer possible for us to recover bunker costs through the standard bunker adjustment factors.”

In a notice on its website, MSC said the “situation is no longer sustainable without emergency action”.

It said the worldwide temporary emergency bunker surcharge will be with immediate effect.

The impact may be worse in Nigeria because of the recent directive by Hadiza Bala-Usman, Nigerian Ports Authority director, that shipping companies must use their holding bays for empty containers.

According to Usman, this would eliminate gridlock caused by trucks waiting on port access roads to return empty containers to the ships.

Kikelomo Abiola Cudjoe, Maersk’s marine operations manager in Nigeria, had said the use of holding bays would increase the cost of operations, which would eventually affect customers.