Nigeria Starts First Domestic Container Shipping Line
Clarion Shipping West Africa is starting what it calls “Nigeria’s first fully indigenous container liner,” as it looks to build regional trade and improve service versus the transshipment options of the major carriers. The company celebrated the launch of the service at Tin Can Island Port in Lagos on July 3.
The first vessel, Ocean Dragon (6,100 dwt), arrived after a 60-day trip from China, marking the start of the Nigerian-owned shipping line. The company said it had been challenging to complete the transaction in part because of language barriers, technical issues, and an engine failure in Malaysia. They also mentioned the challenges of flying Nigerians to China to be the first crew while saying, “We wanted to make sure it was a Nigerian crew.”
Built in 2014, the 322-foot (98-meter) vessel was acquired from its Chinese owners. While it is registered in Panama, the company highlights that 70 percent of the crew is from Nigeria, and it hopes to increase this to support the expansion of the domestic maritime industry. The ship has a capacity to transport 349 TEU.
The initial service plan calls for a focus on moving containers between Nigeria’s ports, with the company encouraging the government to enforce cabotage rules. It expects to have an advantage by promoting its ownership and support of the local economy. Service, Clarion Shipping, says will range from Nigeria to Benin, Togo, Ghana, Cameroon, Sierra Leone, and Ivory Coast. However, it reports interest for service to South Africa and Egypt as it seeks expressions of interest from customers.
The company reports it has already booked 1,300 export containers, and that is helping farmers and manufacturers to avoid losses caused by delays and a lack of containers. It says the sea route provides a faster transport, within two days between the Nigerian ports, and has strong advantages versus the high-risk, road-dominated movement of cargo within Nigeria. Sea travel will also be cost competitive.
By leveraging its status as Nigeria’s first indigenous shipping liner, the company looks to also compete against the likes of Maersk and MSC Mediterranean Shipping Company. While the major carriers are expanding service into Africa, movement of containers within the region is largely dependent on transshipment.
Many emerging countries have pointed to similar challenges in their supply chains and exports, which were further exacerbated during the COVID-19 pandemic. The growth of the major carriers' hub and spoke system and dependence on transshipment has given rise to a broad range of countries, from Australia to South Africa as well as in Asia, talking of developing domestic carriers.
Clarion reports it has had a strong response since announcing the new service. The vessel was acquired in April, and during the dedication this week, it disclosed plans to expand its fleet. The company said it would soon be bringing a vessel with 1,789 TEU capacity to Nigeria that would focus on the export service to Liberia, Togo, Ghana, Ivory Coast, and Nigeria.