An Evaluation of Nigeria’s Seaborne Trade and Demand for Sea Transport

Abstract

It is the strategic objective of maritime nations to develop and sustain an indigenous merchant marine to be able to participate in cargo lifting in the international seaborne shipping trade and thus earn shipping freight revenues. Various policies aimed at achieving this objective have been put forward by Maritime Administration of nations and indeed the Nigerian Maritime Administration. Successful implementation and appraisal of these policies arguably depend on quantitative estimation of shipping tonnage demand and other freight market indices. This paper attempts an exploratory analysis of shipping tonnage demand in the Nigeria’s non-oil freight market. Based on shipment level data obtained from port terminals records, we conduct a parametric analysis to determine demand for shipping tonnage and shipping routes showing intense transport demand. Trend analysis of aggregated trade volumes is conducted to examine the viability of Nigeria’s seaborne trade in the short term. Policy framework aimed at development of indigenous shipping tonnage capacity, trade facilitation and sustenance is proposed.

Key Words: Ports; Terminals; Shipping Routes; Tonnage Demand; Indigenous Carrier; Seaborne Trade.