Impact of Container Shipment Costs on Consumer Prices ofImported Goods in Nigeria

Abstract

The study focuses on impact of container shipment costs on consumer prices of selected imported goods in
Nigeria. The relationship between container shipment costs on consumer prices of imported goods has been
an area of interest for maritime stakeholders, economists and industry analysts which is relevant especially
in the context of globalization, where the movement of goods across borders plays a crucial role in
determining the final prices consumers face. Two objectives were reviewed these include examine the impact
of container shipment costs on consumer prices of imported goods and examine how container shipment
costs affected the prices of imported goods.The study review electronic such as PC, TV and machinery such
as Water Pumps as selected imported goods from 1990 to 2024. The study uses qualitative approaches to
achieve the laid down objective. The study draws it data from annual reports of the Nigerian Port Authority,
CBN, Nigeria Bureau of Statistics to determine the periodic changes in Nigeria ports from 1990 to 2024. The
method of data analysis used was a simple linear regression. The result from the regression showed that if the
P-Value with a threshold of 0.005 is < 0.005 rejected, but if P > 0.005 accepted. Therefore Port handling fees
(USD) had a p-value of 1.61E-07, Cost of container shipment (CCS), with P-Value with 4.46E-07, Value of
unit of containerized imports (VUCI) with P-Value 6.69E-07 are rejected indicating a very strong evidence
against the null hypothesis while Demurrage was the other significant factor with a p-value of 0.00308 is
equally rejected indicating a strong evidence against the null hypothesis. But if the P > 0.005 then the result
should be accepted based on this Unofficial costs (UC) with P-Value of 0.051914 and Inland transport cost
(ITC) with P-Value of 0.065803 is accepted suggesting insufficient evidence. Freight charges (FC) with P
Value 0.0178911 would have been rejected since 0.0178911 is greater than 0.005 but less than 0.005 FC
would have been considered significant. .While insurance (INS) indicating very weak evidence against the
null hypothesis. The study therefore recommends that there should be an immediate implementation and
introduction of digital and automation platform technologies to streamline port operations as well reduced
paper work in other to improve efficiency at Lagos ports and for future port developments. Government
should invest in improving in transportation infrastructure such as road, railways, and inland waterways to
enhance logistics and supply chain efficiency, and lastly implement cost saving measures for importers as
well as provide import financing options so as to reduce financial burden on importers and assist them to
manage cash flow