Shipping lines to be rocked with a demonstration on Tuesday

On Tuesday, September 24, 2024, key stakeholders in the logistics and trade industries will stage a protest against shipping companies operating in Ghana.

The peaceful demonstration, led by 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, aims to call attention to what they describe as exploitative practices by shipping lines in the country. Several other trade associations will also join the protest to amplify concerns over unfair treatment within the industry.

Key Issues

Various trade and logistics associations in Ghana are gearing up for a protest on Tuesday, September 24, 2024, to voice their frustrations over rising costs linked to shipping lines operating in the country.

The Ghana Institute of Freight Forwarders (GIFF), alongside the Association of Customs House Agents of Ghana and other trade groups, have outlined several grievances. Among their primary concerns are arbitrary fees imposed by shipping companies, including local administrative charges, container cleaning fees, and empty container fees.

The organizers argue that these fees, which are dollar-pegged, breach Bank of Ghana’s pricing regulations for local services.

Additionally, the protesters are calling for the abolition of demurrage charges during weekends and public holidays, asserting that businesses are unfairly penalized for delays caused by non-working days. They are demanding that all demurrage fees collected during these periods be refunded, describing the charges as unreasonable and detrimental to business operations.

Forex Leakages and Economic Impact

The protest organizers have expressed serious concerns about the repatriation of foreign exchange earnings by shipping lines, which they argue is exacerbating Ghana’s foreign currency challenges.

In a statement issued by the group, they claim that the excessive fees collected by shipping companies, which are subsequently sent abroad, are draining the country’s forex reserves. This, they assert, contributes to the weakening of the local currency and places additional strain on the national economy, making it increasingly difficult for Ghanaian businesses to remain competitive on both domestic and international markets.

The group emphasized that these practices are stifling the growth potential of Ghana’s shipping industry, negatively affecting businesses and financially crippling key players throughout the supply chain. They argue that urgent action is needed to address these issues and protect the economic interests of the country.

Wider Implications on Cost of Living

The organizers of the protest assert that these exploitative practices extend beyond just businesses and are significantly impacting the average Ghanaian.

They highlight that the rising costs of doing business, driven by arbitrary fees from shipping lines, ultimately trickle down to consumers, leading to higher prices for imported goods. This escalation in costs further exacerbates the already pressing issue of the high cost of living in Ghana, placing additional financial strain on households across the country.

The protest organisers are making the following specific demands.

1. Abolishing demurrage charges on weekends and public holidays, and refunding businesses for demurrage fees paid during those periods.

2. Compelling shipping lines to negotiate tariffs in accordance with Regulation 5 of the Ghana Shippers’ Authority Regulations, 2012 (L.I. 2190).

3. Eliminating arbitrary fees, including local administrative charges, container cleaning fees, and empty container fees.

4. Ensuring that shipping lines provide 24-hour services throughout the week, including weekends and public holidays, to avoid unnecessary delays.

5. Stopping shipping lines from engaging in customs house brokerage, which they claim disadvantages freight forwarders and stifles competition.

6. Prohibiting the pegging of shipping line fees to the US dollar, in line with Bank of Ghana regulations.

A Call for National Support

The protest organisers urged the general public and government authorities to lend their support to the cause.

They said that holding shipping lines accountable will not only improve the efficiency of Ghana’s logistics and supply chain but also help stabilise the cedi and lower the cost of goods for consumers.

“This is not just an industry issue — it’s a national issue,” the organisers stated, adding that “The outcome of this protest has the potential to reshape the operational landscape of commerce in Ghana, potentially stabilise the exchange rate, significantly increase the standard of living of every Ghanaian, and mitigate the national security ramifications of the cost-of-living crisis,” the statement noted.