The Nigerian government has spooked the tanker industry by issuing backdated tax demands for millions of dollars to a number of owners, with some tanker firms now actively avoiding the West African nation over fears of possible vessel arrests.
Tanker organisation INTERTANKO has sent a memo to its members outlining the new tanker taxes covering the period from 2010 to 2019, which are already having a sizeable impact on suezmax rates.
“Backdated tax demands have been allegedly sent to owners from Nigeria’s Federal Inland Revenue Service, creating a lot of uncertainty in the West African market. Although yet to be confirmed as bonafide, this will nevertheless have a knock-on effect on rates with owners ready to make hay,” broker Fearnleys noted in its most recent weekly report, going on to predict rates will maintain a “firmer footing” until there is some sort of resolution with the TD20 route from West Africa to UK Continent trading minimum low WS 100s.
“The wider Atlantic is set to benefit from spillover sentiment which will act as a support mechanism,” Fearnleys predicted.
Analysts at rival broker Affinity noted the Nigerian tax situation is having “severe effects” on the TD20 route.
“In the longer term, if only 10 per cent of owners lift Nigeria (as things currently stand), other cargoes will have plenty of offers,” Affinity pointed out.
