The Freight forwarding fraternity is one of many professional groups reeling under the effects of Ghana’s economic challenges in 2022. The President of the Ghana Institute of Freight Forwarders (GIFF), Edward Akrong, and the Acting President of the Customs Brokers Association, Ghana (CUBAG), Nana Fredua Agyemang Ofori-Atta, made this known on the Eye on Port program on Christmas Day.
Assessing the year 2022 in retrospect, the heads of these freight forwarder associations indicated that, the economic challenges facing the country particularly inflation and the poor performance of the cedi, affected cargo throughput negatively. Consequently, they explained that with reduced importation, came reduced business for them.
They explained that despite the last quarter of the year often expected to be the peak period for trade and imports, this year has not been encouraging despite the cedi regaining some stability.
“This was supposed to be our busiest time of the year and because of the US dollar situation most imports were halted and by the time things started getting better we had already entered the season and so it was late for importers to do anything now,” Mr. Akrong said.
“Most of my members are impoverished. This Christmas is not the best for us because all the factors for our trade have gone up. Almost 90% increase in freight among other things. It has been a very difficult year for us I must say. I only want to believe we have gone through the worst” Mr. Ofori Atta added.
They explained that the trade thrives on predictability and the uncertainties surrounding the cost of doing business has severely hampered trading activities.
According to the trade practitioners, this trend of reluctance by traders to increase volumes may continue in 2023 unless some confidence is instilled in Ghana’s shipping economy, particularly when it comes to the stability of the cedi against the dollar.
The President of GIFF, Edward Akrong, suggested that for the purpose of duty payment, government through customs could adopt a strategy to peg the dollar at a fixed rate at fixed intervals of the year, in order to promote economic certainty in trade.
“We have been urging government to at least peg the dollar for the purposes of duties so that traders can plan ahead. If traders know that within a period of three to four months, the dollar will be at a certain rate then, they can plan their purchases and imports accordingly.”
The freight forwarders however remained peeved at the various shipping lines operating in Ghana for their reluctance to heed to the concerns of the trading public.
According to them, not only are shipping lines charging unjustifiable local fees, but some section of them are applying discrepant exchange rates making the clearance process complicated.
They promised to take their agitations a notch higher by the turn of the year, if government is unable to intervene.
“We have been given a lot of assurances. We have done a lot of work with the Ghana Shippers’ Authority, we have been to the minister and we are looking at some solutions coming our way, if not we will have to take it a notch higher.
Their fees and charges have to be looked at. It is taking a huge chunk of the traders’ capital. Even with the US dollar rate, as at last week, some were pegging the dollar at 14,” the GIFF president said.
“If you ask me, I’d say the shipping lines are almost running riot. They may be private enterprises but this area is a regulated area. So the regulator should have the ability to sanction,” the Acting President of CUBAG also bemoaned.
