Josiah
Key players in Ghana’s logistics and trade sectors are set to stage a major protest against the practices of shipping lines operating within the country on Tuesday, September 24, 2024.
The Ghana Institute of Freight Forwarders (GIFF), the Association of Customs House Agents of Ghana, Freight Forwarders Association of Ghana, and the Customs Brokers Association of Ghana, in collaboration with other trade associations and concerned stakeholders, will lead the peaceful demonstration to spotlight what they describe as exploitative practices by shipping lines.
Key Issues Raised
In a press release signed by leaders of the various associations, the protest is intended to raise awareness about several concerns they believe are driving up the cost of doing business in Ghana. Chief among these concerns is the imposition of arbitrary charges, including local administrative fees, container cleaning fees, and empty container fees.
Organizers argue that these charges, often pegged to the U.S. dollar, violate the Bank of Ghana’s regulations on pricing services within the country.
Additionally, the protestors are demanding the cessation of demurrage charges during weekends and public holidays. They contend that these fees unfairly penalize businesses on non-working days when clearance processes are paused. They are calling for the refund of all demurrage charges accrued during such periods.
Forex Leakages and Economic Impact
The protestors also highlighted concerns over the repatriation of foreign exchange earnings by shipping lines, claiming it is exacerbating the country’s forex shortages. According to the coalition, excessive fees collected by the shipping lines and transferred abroad are draining Ghana’s forex reserves, weakening the local currency, and placing additional financial strain on businesses.
“These practices have stifled the potential growth of Ghana’s shipping sector, severely impacting businesses and crippling the financial well-being of numerous stakeholders within the supply chain,” the statement read.
Wider Implications on the Cost of Living
Beyond the business impact, the organizers argue that these exploitative practices are affecting the everyday Ghanaian. The increased cost of doing business, driven by arbitrary charges from the shipping lines, trickles down to consumers and drives up the cost of imported goods. This, they say, worsens the already high cost of living in the country.
Protest Demands
The protest organizers are calling for the following actions:
- Abolishing demurrage charges on weekends and public holidays and refunding businesses for demurrage fees paid during those times.
- Enforcing Regulation 5 of the Ghana Shippers’ Authority Regulations, 2012 (L.I. 2190), which would compel shipping lines to negotiate tariffs fairly.
- Eliminating arbitrary charges, including local administrative fees, container cleaning fees, and empty container fees.
- Ensuring 24-hour shipping services throughout the week, including weekends and public holidays, to prevent delays.
- Prohibiting shipping lines from engaging in customs house brokerage, a practice they claim disadvantages freight forwarders and stifles competition.
- Stopping the pegging of shipping fees to the U.S. dollar, in line with Bank of Ghana regulations.
A Call for National Support
The protest organizers are urging the general public and government officials to support their cause. They believe that holding shipping lines accountable will enhance the efficiency of Ghana’s logistics and supply chain sectors, stabilize the local currency, and lower the cost of goods for consumers.
“This is not just an industry issue — it’s a national issue,” the organizers stated. “The outcome of this protest has the potential to reshape the operational landscape of commerce in Ghana, stabilize the exchange rate, improve the standard of living for every Ghanaian, and mitigate the national security risks associated with the cost of living crisis.”
The demonstration, organized by freight forwarders, trade associations, and concerned stakeholders, is viewed as a pivotal moment in the push for transparency, fairness, and efficiency in Ghana’s maritime and logistics sectors.
With many businesses struggling with rising operational costs, the protestors believe that without swift intervention, Ghana’s economic future could face significant challenges. The demonstration will begin at the GIFF premises in Tema and is expected to attract participants from across the country, potentially disrupting shipping line operations in Ghana.
