Ports being choked with State-Owned Agencies consignments -GSA

Participants at the seminar

Over 500 containers belonging to State-Owned Agencies (SOAs) have since the last five years remained uncleared at the ports, the Ghana Shippers Authority (GSA) has reveals.

The Authority says 49 containers have been at the ports for over 2,000 days (5 years, 6 months, and 20 days); 116 containers; 1,000 to 1,999 days (3 to 5 years), 78 container, 500 to 999 days (1 year, 5 months to 3 years), 205 containers, 100 to 499 days (3 months, 10 days to over 1 year); and 60 containers, 99 days (over 3 months).

These figures were randomly collected from five shipping lines and agents operating in the country.

This revelation was made in a speech delivered by the Head of Shippers Services and Trade Facilitation of the GSA, Monica Josiah, on behalf of the Chief Executive (CE) of the Authority, Benonita Bismarck, at a seminar held under the theme: “Demurrage is avoidable”, in Accra yesterday.

Mrs. Josiah expressed grave concern over the development, as it would impose further constrains on the country’s scarce resources.

She indicated that while these consignments would not be forfeited to the state for the purposes of auction, their eventual clearance would be accompanied by huge demurrage and rent charges that had accumulated over the period at the ports.

“I would like to use this opportunity to appeal to the Chief Directors, Chief Executives, Managing Directors and other relevant officers of Ministries, Departments and Agencies (MDAs)/State-Owned Enterprises (SOEs) to take urgent action to ensure that these consignments are expeditiously cleared from the ports to mitigate the use of state resources ro avoid costs,” she added.

These challenges are sailing against successes chalked by the Authority to reduce demurrage from US$76 million in 2017 to US$27 million in 2019, and further down to US$19 million in 2021.

Mrs. Josiah added that the downward trajectory of the figures was as result of initiative taken by the Authority to sensitise the shippers, as well as the paperless regime and Integrated Customs Management System (ICUMS) introduced by the government.

“These improvements, notwithstanding, the goal of the Authority to pursue a further reduction to the barest minimum in the interest of shippers and the national economy, especially in the face of recent increases in the demurrage daily rates by some shipping lines, coupled with the current exchange rate volatility,” she added.

According to her, there was a need for further engagement with stakeholder, since the Authority had been dealing with pertinent industry issues bordering on costs, delays and general service quality within shipping and cargo.

On the seminar, she explained that demurrage-free days commence when the cargo is discharged and made accessible to the consignees or agent at the designated terminal, saying, “this viewpoint, while reflecting global best practice, is also held by the majority of the shipping lines/agents engaged. We urged all the others to align to ensure certainty for shippers at the ports.”

On his part, the Deputy Commissioner of Suspense Regimes of the Customs Division of the Ghana Revenue Authority (GRA), Emmanuel Ohene, added that the detention charges applied to containers that had been taken out of the ports and not retained within a specific date.

He said detention charges, which is US$70.00/day per 40” container, is avoidable if importers made the necessary resources available before the arrival of the consignment.

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