Importers, exporters and the general trading community is demanding for the repeal of the arbitrary “local administrative fees” charge imposed on them by shipping lines operating at the nation’s seaports.
The call for the scrapping of the charge is contained in a digital petition sighted by norvanreports.
The petition is probably due to the inability of government to come to an agreement with Shipping Lines, given that Shipping Lines over a month ago agreed to negotiate its new charges with the GSA following a directive to do so by the Minister for Transport, Kwaku Ofori-Asiamah.
In the petition, Executive Secretary of the Concerned Freight Forwarders and Traders Association of Ghana, Johnny Mantey, noted that Shipping Lines operating at Ghana’s seaports are on average charging traders $155 per every 20 footer container.
According to him, the Tema Port MPS Terminal 3 is capable of handling 2 million TEUs a year, and with the $155 per container charge, Shipping Lines will be raking in some $232 million every year.
He opines in the petition hat given the new charges by the Shipping Lines, traders have no option than to transfer the added costs to Ghanaians making patronage of goods and services expensive.
“Every Ghanaian, exporter, importer and business person must be concerned about this unwarranted charge due to the implications for the cost of goods and services,” reads part of the petition.
The petition further notes that, the imposed charge on traders by Shipping Lines which is not sanctioned by government, will lead to ‘trading traffic’ being directed to other countries since the new rates by the Shipping Lines are acceptable to traders in other countries.
Read below details of the petition:
HELP SCRAP THE ARBITRARY ‘LOCAL ADMINISTRATIVE FEES’ CHARGED BY SHIPPING LINES
Shipping Lines in Ghana are yet to explain to the Ghanaian Trader/Consumer why they should continue to pay the insensitive “Local administrative charges”.
As expected, they have refused to file and disclose their arbitrary “local charges” for negotiation with the Ghana Shippers Authority ( The Regulator ) per THE GHANA SHIPPERS AUTHORITY REGULATIONS, 2012(LI 2190 ),Regulation 5. The regulation states that;
“Negotiation of charges”
(1) The Authority shall negotiate on behalf of shippers with associations of shipping service providers”.
a) charges of shipowners, shipping lines and agents;
(b) port charges; etc…
On Average the Shipping Lines levy traders $155/every 20’ Cont. as *Local Administrative Charge*.( What is that ? )
Today MPS/T3 is capable of handling 2,000,000 TEUS/YR.
At even 1,500,000 TEUS/YR, ( 1,500, 000 x $155 = *$232,500,000* That’s *$232.5M*/Yr. That’s what they’ve termed Local Administrative Charges.
The trader has no other option, than to transfer these “illegitimate fees” on the cost of the product, making goods and services expensive.
Many have been indebted to banks due to this needless charge.
Government’s plan, to reduce the cost of doing business in our ports will remain meaningless and a mere rhetoric if these arbitrary charges are allowed to stand.
The Ghana Govt. recently invested about $1.5B ( minus interest payments ) to build the ultra modern T3.
Govt. has again, through the Ministry of Trade, tirelessly championed the operationalization of AFCTA, with the hope of making our ports, the preferred trading hub in Africa.
This unsanctioned charge imposed on importers will direct all ‘trading traffic’ to other countries since their rates are more acceptable to traders.
Every Ghanaian, Exporter, Importer and Business person must be concerned about this unwarranted charge due to the implications for the cost of goods and services.
Please sign this petition to halt this illegality (click on this please)
