The Ghana Institute of Freight Forwarders (GIFF) has raised significant concerns about the escalating costs of demurrage that importers and businesses incur on a weekly basis, amounting to an estimated GH¢30 million. Mr. Stephen Adjokatcher, the President of GIFF, attributes this rising cost primarily to delays caused by regulatory authorities, which hinder swift document processing necessary for clearing shipments. He points out specific instances where documents remain at agencies like the Environmental Protection Authority (EPA) and Ghana Standards Authority (GSA) for extended periods, exacerbating the financial burden from demurrage and port rent.
GIFF believes that the government’s 24-hour economy initiative is a promising measure to mitigate these issues. To address the growing concern over high demurrage charges, Adjokatcher has called upon the Ghana Shippers’ Authority to reconsider and amend the framework governing the duration of demurrage.
Freight forwarders, who act as intermediaries among clients, shippers, and Customs, play a pivotal role in facilitating trade and collecting government revenues at ports. However, bureaucratic inefficiencies are a persistent problem, leading to substantial delays in document processing, which in turn inflates the cost of doing business. This situation not only makes Ghanaian exports less competitive but also increases consumer prices due to elevated import costs.
While efforts are underway to address these challenges, demurrage rates in Ghana remain high, a situation that poses risks to attracting foreign investment. Furthermore, the Ghana Shippers Authority faces its own complications, as it has accused international shipping lines of enforcing arbitrary exchange rates and resisting regulatory oversight.
Long-standing grievances from businesses and freight forwarders regarding excessive charges and lack of transparency in shipping practices have come to light, with concerns that such issues could drive trade through more competitive ports in the West African region. Overall, GIFF emphasizes that tackling the roots of these high costs is essential for improving the business climate in Ghana and stimulating economic growth.
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