Ghana’s Cocoa Freight Rates to Increase by 5% for 2024/2025 Season
The Cocoa Marketing Company (CMC), Ghana Shippers’ Authority (GSA) and 17 shipping lines have agreed to a 5% increment in basic freight rate for the 2024/2025 cocoa season.
The new rates, set to take effect on October 1, 2024, reflect the ongoing challenges in the global shipping industry while maintaining Ghana’s competitiveness in the cocoa market.
Furthermore, prices for desiccants and other materials used in shipment will remain stable throughout the 2024/2025 season, providing certainty in input costs for shipping lines.
Under the new agreement, shipping rates per tonne vary by destination.
Northern Europe will see rates of €56.72, while Estonia and Mediterranean Europe will be charged €64.83 and €63.67 respectively.
For the Far East, rates range from US$105.46 to US$111.39 and shipments to Brazil will cost US$122.05 per tonne.
Notably, the Bunker Adjustment Factor (BAF) remains unchanged from the previous year, providing some stability in fuel-related costs.
Freight payments will be made in US dollars, with exchange rates determined by Reuters on the Bill of Lading date.
Freight payments will be made in US dollars, with exchange rates determined by Reuters on the Bill of Lading date. Shipping lines are also required to release non-negotiable Bills of Lading to the CMC within 24 hours of a vessel’s departure, in accordance with the CMC’s new financing model.
The decision to increase rates was influenced by the need to maintain competitive freight rates for Ghana’s cocoa, particularly in light of increasing competition from neighbouring countries, which was a key consideration in the negotiations.
The CEO of the Ghana Shippers’ Authority, Mr Kwesi Baffour Sarpong, in an interaction with the media in Accra, expressed gratitude to the shipping lines for their continued partnership with Ghana.
He highlighted their role as intermediaries between the Cocoa Marketing Company and global buyers, emphasizing the importance of this relationship for international trade.
Mr Sarpong also addressed the issue of underutilisation of the Takoradi Port for cocoa exports, despite the Western Region being a primary source of Ghana’s cocoa.
He stated that the entry of YilPort at the Takoradi Port which brings advanced technology, efficient handling systems and international expertise would ensure that the cocoa export process becomes more streamlined and quicker,
“This development is expected to reduce delays, minimise costs and ensure that cocoa shipments reach their global destinations in optimal condition,” he added.
The negotiations’ major shipping lines, include Arkas Line, Maersk Line, Mediterranean Shipping Company, Gold Star, ZIM Shipping Lines, Grimaldi, Messina Lines, Pacific International Line (PIL), UNICARGO, Breadbox Shipping Lines, and Orient Overseas Container Line (OOCL).
