The Ghana Union of Traders Association (GUTA) has welcomed the Ghana Shippers’ Authority’s decision to postpone new container administrative charges. The revised fees will now start on July 1. Joseph Paddy, Vice President of GUTA, called the delay a temporary relief. He stated that businesses are already struggling with high port costs. Mr. Paddy believes the administrative charge should be removed completely. He spoke on Joy FM’s Super Morning Show on Friday, May 15.
GUTA initially pushed for the total removal of the administrative charge. The Ministry of Transport and the Ghana Shippers’ Authority proposed a postponement instead. This allows for further stakeholder consultations. Mr. Paddy explained that the business community sought a complete scrap of these charges. He noted that the wisdom of the shipping authority and the Trade Ministry led to the July 1 date. This provides time for new discussions.
The cost of doing business at Ghana’s ports remains higher than in neighbouring countries. This makes Ghana less competitive. Mr. Paddy travelled with a delegation to compare port charges. They visited Togo, Nigeria, and Ivory Coast. They found Ghana’s charges to be on the higher side. These findings were presented to the Ghana Shippers’ Authority.
A major concern for GUTA is the Container Administrative Charge. Shipping lines impose this fee. Mr. Paddy stated it is not charged in neighbouring countries. The same shipping companies operate across the region. Most ships that use Ghana’s ports also serve other West African nations. However, these ships do not levy this administrative fee elsewhere.
Importers in Ghana pay $165 per twenty-foot equivalent unit (TEU) container. This is for the administrative fee. Mr. Paddy highlighted that this is a local charge. Yet, it is levied in US dollar terms. He questioned the need for additional local administrative charges. Freight fees already include these administrative costs. He pointed out that freight charges encompass administrative expenses.
The fee is charged per container. This differs from charging per bill of lading. Imagine having 100 containers on one bill of lading. This results in a payment of 165 multiplied by 100. This totals approximately GHS 16,500 for the administrative fee. Following talks with the Ministry of Transport, the charge was temporarily reduced. It dropped from $165 to $65. The Minister of Transport suggested removing $100 of the fee. This would leave the charge at $65. Mr. Paddy, however, insisted on total removal.
The business community believes the charge has no justification. Some workers in shipping lines petitioned the government. They opposed the planned removal of the fee. This prompted authorities to halt the process temporarily. The Minister of Transport received this petition. This led to the temporary halt of the administrative fee removal. Further review is now planned.
Mr. Paddy accused shipping lines of making substantial profits. These profits come from administrative and demurrage charges. He suggested the profits leaving Ghana are immense. He also criticised demurrage fees. These are charged on weekends and public holidays. They were even charged during periods of business shutdowns. This includes the COVID-19 pandemic. Shipping lines continued to charge demurrage even when they were not working. Holidays designated by the government did not stop these charges.
High port charges are driving importers away. Landlocked countries like Niger, Burkina Faso, and Mali are affected. They previously relied on Ghana’s ports. Now, they are diverting cargo elsewhere. This is due to the high charges. Mr. Paddy compared Ghana’s ports with Togo’s. He noted a significant difference in shipping traffic. Togo’s seashore has a large number of ships. Ghana risks losing more business opportunities. Urgent steps are needed. These steps should reduce port charges. They should also improve port competitiveness. GUTA aims to make Ghana’s port more attractive. They want more cargo and increased port patronage.