Shipping lines levy in 2021 pegged at over US$1.5 billion - GIFF

A total of US$1,562,000,000 was received as imports by shipping lines, the Ghana Institute of Freight Forwarders Association (GIFF) has revealed.

According to the former President of GIFF, Kwabena Ofosu Appiah, this amounts to an excess of US$781,000,000 collected in illegitimate administrative fees.

Addressing the press after a demonstration at Tema on Tuesday, September 24, 2024, Mr. Appiah said, "The shipping lines levy traders a conservative average of $500 per TEU as local administrative charges. In 2021, one million, five hundred and sixty-two thousand TEUs were received as imports. This amounts to an excess of $781,000,000 collected in illegitimate administrative fees alone."

"This is the amount the shipping lines are making a year just from the unwarranted local administrative charge for absolutely no work done. Take note that these figures are for the year 2021 and, of course, they are significantly higher today," he added.

According to Freightos.com, a twenty-foot equivalent unit (TEU) is a shipping container whose internal dimensions measure about 20 feet long, 8 feet wide, and 8 feet tall.

The over US$1.5 billion, he said, does not include other charges such as container cleaning fees, empty container fees, and demurrage on weekends and holidays.

Shipping lines engaging in freight forwarding business

Kwabena Ofosu Appiah also accused some shipping lines, including customs house brokerage, of participating in the freight forwarding business on exploitative grounds.

He said this was an abuse of dominance, as they have greater financial muscle to enable them to monopolise the sector and push local businesses out.

The former GIFF chairman said the actions taken by these shipping lines were in violation of Section 43 (1) of the Customs Act, 2015 (Act 891).

The Act reserves the business of the customs house agent to entities that are wholly owned by indigenous Ghanaians licensed by the Commissioner-General of Customs.

SA/MA