New GSA levy sparks concerns over freight costs and viability of ports

The introduction of a new levy on shipping lines, outlined in the Ghana Shippers’ Authority’s (GSA) new legislation, is raising alarm within the maritime industry.

Stakeholders warn that the levy could significantly increase freight costs, potentially prompting major shipping lines to scale back operations or reconsider their presence in Ghana’s ports.

Concerns over the levy have sparked debates about its impact on Ghana’s bustling port economy as any additional costs could make Ghana less attractive as a regional trade hub, with far-reaching consequences for local businesses, government revenue, and jobs.

Should shipping lines withdraw or reduce services, the resulting disruptions could harm supply chains, increase shipping costs, and force traders to rely on neighboring ports, adding logistical and financial burdens.

Experts caution that such developments could erode Ghana’s reputation as a business-friendly destination, jeopardizing foreign investments and the broader port economy.

The tension surrounding the new levy is exacerbated by protests and reported threats against shipping agents, allegedly orchestrated by some freight forwarders and clearing agents.

Some incidents, including the invasion of shipping company premises, have heightened concerns about the safety of industry representatives and their investments. While no casualties have been reported, these actions could lead to legal battles if care is not taken.

Despite these challenges, a section  of the freight forwarding community has taken a more constructive approach, engaging shipping agents to better understand freight cost structures and port charges. This effort has been welcomed as a positive step toward resolving disputes and fostering dialogue.

Shipping lines have criticized the lack of transparency and inclusivity in discussions surrounding the new GSA law, arguing that key provisions impose undue restrictions that could discourage investment and growth.

Also, their exclusion from deliberations on the accompanying legislative instrument (LI) undermines collaboration. It is has been gathered that the GSA has begun requesting rates and charges from shipping lines using a law that is not available to the public, shipping lines and the industry as a whole, further fueling discontent.

Industry experts emphasize the need for immediate stakeholder consultations to address these concerns. They warn that failure to achieve consensus risks deepening the crisis and alienating critical players in the global shipping trade.

A withdrawal or reduction in port calls by major shipping lines could have severe economic repercussions. Local importers and exporters may face increased costs and logistical hurdles, while the government stands to lose tax revenue if destination charges are moved offshore. Additionally, job losses in the shipping lines and/agencies space—where over 90percent of the workforce are Ghanaians—would compound the challenges to the local economy.

To prevent further escalation, there is the need for an inclusive dialogue among all stakeholders; a balanced approach that addresses the concerns of shipping lines, freight forwarders, and other parties is essential to ensuring the continued growth and stability of Ghana’s port economy.

For now, industry stakeholders can only look on to the government to decide its next steps, with the fate of Ghana’s ports hanging in the balance.