Importers have long grappled with the burden of demurrage and rent charges, often encountering financial hurdles in their shipping endeavours.
Over recent years, the Ghana Shippers’ Authority (GSA) has been inundated with complaints from shippers concerning demurrage fees levied by shipping lines, despite delays not being attributed to the shippers themselves.
To tackle this challenge, the GSA launched the “Avoiding Demurrage and Rent” seminar series in 2018. The initiative aims to educate shippers about the significance of initiating clearance procedures for goods before their arrival at the port, thereby reducing the likelihood of incurring demurrage charges.
The GSA has initiated steps to establish Service Level Agreements (SLAs) with Shipping Service Providers on behalf of shippers, which aim to promote accountability within the shipping and logistics sectors. These agreements will outline the obligations of shipping service providers to shippers, streamline port clearance processes, clarify time-related shipping costs, offer guidance on cost avoidance strategies, and delineate the role of the GSA in this context.
Mr. Kwesi Baffour Sarpong, Chief Executive Officer (CEO) of GSA, announced these developments in a speech read on his behalf by the Director of Operations at GSA, Mrs. Sylvia Asana Dauda Owu, during a workshop on “Avoiding Demurrage and Rent” for Ministries, Departments, and Agencies (MDAs) held at the Shippers’ House in Accra on Tuesday, 23rd April 2024.
The GSA’s targeted campaign towards MDAs was spurred by research findings indicating that government agencies rank among the top payers of demurrage charges.
Mrs. Sylvia Asana Dauda Owu reiterated the Authority’s commitment to establishing a “demurrage-free port” in the interest of shippers and the national economy.
“The GSA is actively working to enforce the provisions outlined in the Ghana Shippers’ Authority Regulations 2012 (L.I. 2190), with a specific focus on Section 6 which outlines service standards designed to uphold minimum quality levels in shipping services provided to shippers.”
Additionally, Mrs. Owu entreated MDAs and the leadership of State-Owned Enterprises to expedite the clearance of consignments from ports to mitigate avoidable costs incurred using state resources.
Mrs. Monica Josiah, Head of Shipper Services and Trade Facilitation Department at GSA, appealed to MDAs responsible for granting permits and licenses to shippers to be mindful of the services they provide to avoid demurrage charges.
Participants, including freight forwarders and representatives of various MDAs, emphasised the importance of staying informed about new developments that could be crucial for operating a cost-effective business.
