From Rotimi Asher Lagos
Association of Maritime Truck Owners ,AMATO, has raised concerns over the current freight rate structure in Nigeria’s maritime haulage industry, describing it as unsustainable and inequitable, particularly for truckers and small fleet operators.
In a statement, AMATO’s Head of Research, Mr. Adeshina Ajibola, explained that empirical data derived from a comprehensive pricing template for haulage operations reveals that existing freight rates fail to reflect realistic Turnaround Times ,TAT, external inefficiencies, and prevailing operational challenges in the sector.
According to Mr. Ajibola, key insights from the pricing template highlight that harsh operational conditions, particularly within the 50-kilometre radius of Lagos, classified as “Local” significantly hinder efficiency. He noted that current freight rates, often distorted by brokerage fees, fail to reflect the true investment and risks undertaken by truck owners.
“Unsustainable practices, such as rate reductions driven by automation, overlook the realities of Nigeria’s difficult business environment”, Ajibola stated. “When compared to global cost-per-kilometre benchmarks, the local haulage industry is becoming increasingly unviable.
“The pricing template developed to support cost-reflective freight rates comprises several key components, some of which include Rate Calculations, Standardized Rate Schedule, Fuel Consumption Chart ,covering Public and Private Dumps, Number of Trips, Turnaround Time ,TAT, in Days and Hours, Travel Duration, TAT Calculation Metrics and Mark-Up Calculations.
“These elements underscore the urgent need for a standardized minimum freight rate to safeguard stakeholders’ interests and promote long-term industry sustainability.
“Despite the sector’s potential profitability, the maritime haulage industry currently operates in a highly competitive and chaotic environment likened to a rat race where truckers disproportionately shoulder the risks and costs.
“We commend the Nigerian Shippers’ Council for its ongoing efforts in addressing freight-related challenges. However, as Nigeria moves toward the implementation of the single-window system, the need for standardized and transparent freight rates has become increasingly urgent.
“Establishing fair and consistent pricing structures is critical to building a sustainable and equitable market, one that delivers value to all stakeholders across the logistics and supply chain ecosystem.
“We urge all industry players, regulators, and policymakers to collaborate in fostering a haulage sector that promotes investment, ensures proper maintenance, and drives long-term growth.
