As the festive season approaches, the joy of Christmas shopping may be marred for many consumers, with the surge in haulage costs casting a shadow on the affordability of goods.
Importers, grappling with the soaring price of diesel, are faced with the daunting task of moving laden containers from seaports in Apapa to warehouses nationwide.
The repercussions of this cost burden are likely to be passed on to end-users, leaving shoppers feeling the pinch during the holiday season.
The cost of transporting containers from Lagos port to importers’ warehouses in Lagos has witnessed a staggering increase, averaging around 100 percent.
This surge is primarily attributed to the skyrocketing price of diesel, currently standing at N1,300 per liter.
Truckers, essential in the haulage business, find it increasingly challenging to break even under these financially strenuous circumstances.
Statistics from the National Bureau of Statistics reveal a significant year-on-year increase of 25.45 percent in the average retail price of diesel from October 2022 to October 2023.
On a month-on-month basis, a substantial increase of 12.82 percent was recorded, exacerbating the financial strain on truckers.
BusinessDay’s investigations indicate the profound impact of these rising costs on container transportation. Transporting a 40-foot container from Apapa to Mushin, which previously cost N400,000, has now surged to N800,000.
Similarly, the transport cost of a 20-foot container from Apapa to a Lagos warehouse has risen from approximately N200,000 to between N350,000 and N400,000.
The escalation is not limited to Lagos, as transporting a 40-foot container from Lagos to Onitsha or Nnewi in the East now commands a staggering N1.8 million, while a 20-foot container costs around N800,000.
Additionally, taking a 40-foot container from Lagos to Abuja now demands N1.6 million, and a 20-foot container to a warehouse in the north costs N800,000.
The upward trend continues with the cost of transporting a 40-foot container from Lagos to Kano reaching approximately N2.4 million, while a 20-foot container to Kano costs as much as N1 million.
Bello Yusuf, a truck operator, expressed the profound impact of the rising diesel prices on their business.
“The soaring price of diesel is affecting our business, and it is no longer easy for one to embark on a trip without making sure that the payment will cover the money spent on fueling the truck,” Yusuf lamented.
In addition to the high fuel costs, truckers face additional challenges, including exorbitant expenses on truck repairs and spare parts due to surging inflation. The cost of vehicle spare parts, including tires, has reached unprecedented levels, posing further financial strain on truck operators.
Tony Anakebe, a Lagos Customs Licensed Agent, highlighted the ripple effects of these challenges on various routes, emphasizing the demand-driven price disparities.
He expressed his surprise at the substantial increase in transportation costs, revealing the financial strain faced by both transporters and consumers alike.
Bala Mohammed, another truck operator, stressed that the pump price of diesel at N1,300 per liter has significantly increased the operational cost for truck operators.
Extortion by security agencies along the port corridor and checkpoints on highways in Nigeria further compounds the challenges faced by the haulage business, eating into their profits.
As the holiday season approaches, the plight of truckers and the resulting hike in transportation costs underscore the broader economic challenges faced by consumers and businesses alike.
The implications of these rising costs extend beyond the logistics sector, impacting the affordability of goods for shoppers during a season traditionally associated with joy and celebration.
