Frank Eneawaji Ogwuonuonu
The water or marine transport is one of the oldest systems of conveying goods and services from one place to another in time immemorial. It is obvious that is the only means to reach land demarcated by water.
Many communities in the Niger Delta area are not landlocked rather they are separated by creeks, rivers and seas which often makes movement of people from one community to another cumbersome.
Boat drivers often complain that marine engines consume more fuel than the land counterparts. Two communities separated from each other by river, become too difficult to visit easily; because of deep rivers between them. Even when the distance is not up to one nautical mile, a traveler will be stranded waiting for passenger boat or canoe to ferry him across.
Business people living in coastal communities or villages suffer a lot of untold hardship and problems carrying their goods to their destinations.
High cost of fuel severely threatens marine transport by inflating operational
expenses where bunker fuel accounts 30% to 60% of total costs forcing carriers to impose heavy charges, adopt slower speeds, and pass inflated freight rates onto global supply chains and consumers.
The maritime industry plays a crucial role in global trade, with approximately 90% of goods transported by sea, according to Africa Logistics, 2024. One of the most significant factors influencing the industry is the fluctuation of fuel prices, which directly impacts shipping costs and, consequently, maritime cargo traffic.
In developed countries, fuel cost represent a substantial portion of shipping operational expenses, often accounting for 30% to 60% of total costs. These fluctuations have led to various adoptive strategies in the maritime sector. For instance, many shipping companies have implemented slow steaming practices to reduce fuel consumption, despite extending transit times, slipovers 2024. International businesses across the globe are also affected in one way or the other by high cost of fuel. Shipping of goods from country to another is highly expensive as the merchants pay exorbitantly to convey their goods to their destinations. Marine vessels using fuel, consume much fuel to the detriment of making profit. So many businesses have folded because of cost of conveying raw materials to the point of production.
High-cost of marine fuel driven by mid-east conflicts and closures in key corridors like the Strait of Hormuz severely threatens maritime transport. It triggers soaring bunker prices, sky rocketing hull insurance premiums (up to 10% of value in conflict zones), long vessel remoting delays, inflated consumer goods inflation, and financial strain on global supply chains, the conversation +4 revealed.Indeed, operational impacts occur in these ways surging bunker surcharges, carriers rapidly apply volatile bunker adjustment factors to offset heavy vessel overheads. Also rerouting and delays become common, leading to avoiding high risk choke points adds thousands of miles and weeks of transit time, reducing active global shipping capacity. Another is the skyrocketing insurance at war risk premiums add millions of dollars per voyage through constrained zones.
Thus, it is worthy to mention that high-cost of fuel has serious economic consequences in many aspects. Higher landed costs for shippers pass extra fuel and operational expenses directly to manufacturers and retail consumers.
Stalled seaborne trade was witnessed as margins shrink for operators, and high energy expenses cool down international merchandise volume growth. It slowed down green transition. Extreme gaps between cheap fossil fuels and costly alternative green propulsion options stall long-term decarbonization investments. Commercial activities are facing low patronage from consumers due to the high-cost of fuel in the world.
For instance, the riverine communities are facing high cost transportation in terms of paying high fare compare to their counterparts who live in the wide land areas. A bag of sachet water is above N700.00 while in the cities is about 3000.00. so many commodities are affected, because high-cost fuel.
Again, the marine drivers are crying out because of low turn out passengers. Transport is very high or expensive compare to people living in the same distance on land.
Yes, it is time for the government and the people to look into this critical sector. Yes, the threat is global, but in Nigeria the government should for a strategic way in alleviating the pains caused as a result of high-cost fuel. As president Bola Tinubu few weeks ago, that Nigerian refiners would work again. Indeed, Nigerians are anxiously waiting for such to happen without delay in this dispensation for the people to have sigh of relief.***
