Ghana Shippers Authority intensifies education on demurrage avoidance

The Ghana Shippers Authority has intensified its education on demurrage and the need for players in the port sector to ensure that demurrage charges are reduced drastically.

The latest of these seminars has been held in Tema which brought together stakeholders like the Customs division of GRA, Ghana Link Network Services Limited, freight forwarders, and shipping lines, among others.

The head of the Tema Branch of Ghana Shippers’ Authority, Charles Darling Aseidu Sey disclosed that demurrage and detention and other time-related costs impact negatively on the shipper, thereby eroding the cargo interest holder’s capital and, in the long run, affect the prices of goods and services in the economy of Ghana.

He said the Ghana Shippers Authority has consistently and constructively waged a campaign on demurrage costs which have seen the decline of estimated demurrage payments from USD76 million in 2017 to USD27 million in 2019, with a further decline to USD19 million in 2021.

“The downward trajectory of these figures bears eloquent testimony of the impact of the combined effect of the sensitization campaign and the very bold government initiatives and interventions in the cargo clearance process like the paperless ports project a pre-arrival declaration in ICUMS,” Mr. Asiedu Sey stated.

Despite the decline in estimated demurrage cost over the period, he said the Authority is poised to continue with its sensitization drive to push down the cost at the port to the barest minimum in the interest of shippers.

The Head of Freights and Logistics at the Ghana Shippers Authority, Fred Aseidu Dartey, touched on issues of overstayed charges at the MPS Terminal 3.

He said “It is a charge that is adding up to the cost of doing business. We thought that it's something we need to engage MPS about and then ensure that we can resolve those issues. There are issues also regarding weekend work. So for instance, the Shipping Lines won't be in their offices over the weekend however those weekends count.”

Assistant Commissioner, General Duty at the Customs Division of GRA, Elizabeth Potakey said customs was committed to facilitating trade at the Ports of Ghana.

“If the documents are presented early enough we'll be able to work through everything and there will be no problems with demurrage. From our end, our officers are able and ready to work.”

The Co-Chairman of the GIFF Monitoring Team, Romeo Frimpong said demurrage is avoidable.

“It is an extra charge you can choose to pay or not. It is always important to take note that when we get used to best practices we will always avoid this extra charge.”