Blame Shipping lines for high cost of goods – GIF
The Ghana Institute of Freight Forwarders (GIFF) has attributed the high cost of goods in Ghanaian markets to the actions of shipping lines operating within the country.
According to GIFF, the arbitrary and excessive charges imposed by these shipping lines over the years have significantly contributed to the increased cost of goods on the market. Consequently, the ripple effect includes high inflation, reducing traders’ profit margins, and eroding consumers’ purchasing power.
Speaking on ‘Eye on Port’, an authoritative port and maritime television programme, the Chairman of the Tema Chapter of GIFF, Forwarder Jonny Mantey, expressed concern over the growing number of administrative charges levied on shippers by some shipping lines. He described these charges as not only difficult to comprehend but also outrageous in nature.
Mr. Mantey expressed concern regarding the way shipping lines establish local administrative charges, noting that the process lacks transparency and consistency.
“From the Port of Origin, where goods are purchased, administrative charges are levied. However, when the goods arrive at Tema or Takoradi Port, additional administrative fees are charged by the same shipping line. The frustrating part is that these local administrative charges are pegged in dollars,” Mantey explained.
He noted that the demonstration held on Tuesday, 24th September 2024 should be a wake-up call to all shipping lines operating in the country including Intermodal Shipping Agencies Ghana Limited, Arkas Line, Maersk Line, Mediterranean Shipping Company, Gold Star, ZIM Shipping Lines, Grimaldi, Messina Lines, Pacific International Line (PIL), UNICARGO, Breadbox Shipping Lines, Orient Overseas Container Line (OOCL), CMA-CGM, Grimaldi Ghana Limited, and Maersk Line.
He drew a comparison between Ghana’s practices and those in other countries, noting that in many places, charges are typically based on the importer or exporter’s Bill of Lading (BL)—a crucial document that details the goods being shipped. In Ghana, however, shippers are charged per container, which presents a stark contrast.
“This means if you have 10 containers, you are charged 10 times, and even then, the size of the container determines the cost you pay. This is unconscionable. Why should I be charged per BL globally, but in Ghana, the regime is per container?” he questioned.
Mr. Mantey emphasised that such practices inflate the cost of goods, as these additional charges are ultimately passed on to consumers, exacerbating economic challenges for the nation.
In response, an Executive Member of the Ship Owners and Agents Association of Ghana (SOAAG), Adam Imoro Ayarna, explained that every shipper has a contract with the shipping line responsible for transporting their goods, and the shipping lines’ actions conform strictly to these contracts.
“There is a contract of carriage, and if we want to understand any charges, it is outlined there. These charges have been advertised for all to see,” Ayarna noted.
Ayarna suggested that shippers share their contracts with cargo owners to help them make informed decisions regarding their shipments. He added that shipping lines are open to negotiating charges with individual shippers.
Mr. Mantey, however, maintained that shipping lines and all players within the commercial shipping sector must adhere to the governing laws of the regulator, the Ghana Shippers Authority (GSA). He emphasized that negotiating all charges with the GSA is crucial to maintaining fairness and transparency in the shipping sector.
The GSA is confident that the recently passed Ghana Shippers Authority (GSA) Act 2024, along with its preceding Legislative Instrument (L.I.), will address many, if not all, of the concerns raised. This new legal framework aims to create a more equitable and transparent shipping industry in Ghana.
The GSA has indicated during its stakeholders engagements on the passage of the Law that it remains open and encourages all stakeholders to engage in dialogue and collaboration to ensure that diverse perspectives are considered.
The GSA is confident that working together, Ghana can well position itself as the preferred shipping hub in the sub-region and promote sustainable growth in the commercial shipping sector.