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SOAAG Executive defends demurrage charges in Ghana

4 years ago
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SOAAG Executive defends demurrage charges in Ghana

The issue of what should constitute demurrage or not has been a never-ending debate in Ghana’s shipping sector.

Over the years, importers and clearing agents have repeatedly complained that shipping lines operating in Ghana charge demurrage on days they do not work, such as holidays and weekends.

As a result, some within the shipping community have called upon the lines to either work on such days or put an end to the practice.

Addressing this concern, an Executive Member of the Ship Owners and Agents Association Ghana (SOAAG), Adam Imoru Ayarna asserted that the terms of demurrage charges are bound by the contract entered into by shipping lines and importers, who are their clients.

He emphasized that, “when people look at the bills of laden, they will see the conditions for which demurrage is charged, whether weekends of holidays. It is part of the carriage of contract.”

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He also refuted claims that shipping lines do not work on the said days, saying that some shipping lines do work on Saturdays. However, that practice has not been profitable with underwhelming turnout.

“Some shipping lines work half day on Saturdays, not Sundays though. Shipping Lines have announced that there are so many e-channels that you can still have their staff work for you,” he added.

The Executive Member of SOAAG opined that the issue of demurrage should not be problematic considering that shipping lines in Ghana grant in excess of 7-21 demurrage-free days to its clients.

Adam Imoru Ayarna underscored the need for all its stakeholders to build stronger bonds with the lines by frequent dialoguing to solve problems.

Touching on the incidence of increasing freight rates globally, he intimated that while Ghana in isolation cannot do much to subvert the issue, he said reduction in cargo dwell time, reduced insecurity in the Gulf of Guinea region, and the revitalization of multilateral trade systems would positively impact the cost of shipping.

Tags: COVID-19 pandemicghanaShip Owners and Agents Association Ghana (SOAAG)SOAAG Executive defends demurrage charges in Ghana
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