GIFF, trade unions protest over exploitative practices by shipping lines

The Ghana Institute of Freight Forwarders (GIFF), the Association of Customs House Agents of Ghana, the Freight Forwarders Association of Ghana, and the Customs Brokers Association of Ghana, in collaboration with several trade associations and manufacturers – including the Ghana Union of Traders Association, EXIM Frozen Foods Association of Ghana, and the Food and Beverages Association of Ghana – are organizing a major protest on September 24, 2024, to address what they describe as exploitative practices by shipping lines operating in the country.

The protest will see participants marching through the streets of Tema, with petitions submitted to the Ministries of Transport, Trade, Finance, and other key institutions, calling for immediate regulatory action.

GIFF has raised serious concerns over the imposition of various arbitrary fees by shipping lines, including local administrative charges, container cleaning fees, and demurrage fees, often charged during weekends and public holidays when operations are suspended. These fees, pegged against the US dollar, are said to violate Bank of Ghana regulations and place undue financial pressure on businesses.

According to GIFF, these unregulated practices have negatively impacted the logistics sector and the broader Ghanaian economy. “Shipping lines have operated with impunity for too long, imposing unjustifiable costs that harm freight forwarders, importers, exporters, and ultimately consumers,” said a spokesperson for GIFF. The group highlighted that these charges, when combined with delays and inefficiencies, inflate the cost of doing business and contribute to Ghana’s weakened foreign exchange position.

The protest also seeks to address a practice in which shipping lines, contrary to the Customs Act of 2015, are engaging in customs brokerage, sidelining freight forwarders and monopolizing services in a manner that the association views as anti-competitive.

“This is not just an industry issue but a national concern,” GIFF emphasized. “If these issues are not addressed, it will continue to drive up the cost of goods, erode confidence in our logistics sector, and further damage Ghana’s economic stability.”

GIFF and its allies are urging the general public, industry stakeholders, and the government to support the protest, which they believe has the potential to bring about significant reform, lower consumer prices, and help stabilize the country’s exchange rate. The outcome of this protest, according to GIFF, could reshape the operational landscape of the maritime sector in Ghana and provide long-term benefits for the entire economy.