Massive Protest by Ghana’s Logistics and Trade Sectors Against Shipping Lines
In a highly anticipated event, key players within Ghana’s logistics and trade sectors are set to take to the streets in protest against the shipping lines operating in the country. Spearheaded by the Ghana Institute of Freight Forwarders (GIFF), alongside the Association of Customs House Agents of Ghana, the Freight Forwarders Association of Ghana, and the Customs Brokers Association of Ghana, this peaceful demonstration seeks to highlight what the organizers are calling “exploitative practices” by these international shipping entities. This large-scale action is scheduled for Tuesday, September 24, 2024, and has already garnered significant attention from businesses, consumers, and various stakeholders in the country’s import and export sectors.
The forthcoming protest has not emerged from a vacuum. Rather, it is the culmination of long-standing grievances regarding practices within Ghana’s shipping industry that are seen as harmful to local businesses, the national economy, and even the cost of living for the average Ghanaian. By collectively raising their voices, the freight forwarders and trade associations aim to push for much-needed reforms to foster fairness, transparency, and economic stability within the shipping industry.
Protesting Shipping Lines: Freight Forwarders Stand Their Ground
At the core of the protest is the freight forwarding community, whose members are responsible for the smooth flow of goods in and out of the country. The Ghana Institute of Freight Forwarders (GIFF), in concert with various other associations, argues that the actions of international shipping lines operating in Ghana have pushed their businesses to the brink, ultimately harming the entire economy.
According to a press release issued by the protest’s organizers, arbitrary charges imposed by the shipping lines have become untenable. These fees include local administrative costs, container cleaning fees, and empty container fees, all of which have been criticized for their lack of transparency. Further compounding the problem, the charges are pegged to the US dollar, a practice that the protestors say contravenes Bank of Ghana regulations.
For freight forwarders and businesses alike, these fees add substantial financial burdens. With the Ghanaian cedi fluctuating against the dollar, these dollar-pegged fees exacerbate the operational costs for businesses, diminishing their competitiveness in the local and international markets. The logistics community, therefore, views this protest as a vital turning point in ensuring that shipping lines adhere to more regulated, transparent, and fairer pricing structures.
The Core Grievances: Arbitrary Fees and Weekend Demurrage
One of the protestors’ primary concerns centers on the imposition of arbitrary charges. Freight forwarders have long complained about unexpected and unexplained fees added to shipping invoices, which dramatically inflate the cost of clearing goods through Ghana’s ports. Local administrative charges, container cleaning fees, and fees for empty containers are just some of the most common examples. Not only do these charges vary between different shipping lines, but they are often applied without any consultation or clear justification.
Another major point of contention is the issue of demurrage, a fee charged when a container is not returned within the allocated time. While demurrage is a standard practice worldwide, the freight forwarders argue that charging demurrage on weekends and public holidays is unfair, particularly as no clearance processes occur on these days. Businesses, they argue, are being penalized during periods when they have no control over the clearing process, leading to inflated costs that are unjustifiable.
To address these concerns, the demonstrators are demanding that shipping lines cease the practice of charging demurrage on non-working days. Furthermore, they want a refund of all demurrage fees levied during weekends and public holidays, arguing that these fees have been unfairly imposed on businesses over the years.
Shipping Lines and Forex Leakages: A Growing Concern
Another critical issue raised by the protestors is the repatriation of foreign exchange earnings by shipping lines. According to the coalition leading the protest, these foreign entities collect excessive and unjust fees in Ghana
and then repatriate the proceeds back to their home countries, which they argue is contributing significantly to Ghana’s foreign exchange challenges. The protestors assert that this practice is depleting the country’s forex reserves and weakening the Ghanaian cedi, making it even harder for local businesses to thrive.
The constant outflow of foreign currency, driven by the repatriation of earnings by shipping lines, exacerbates the economic strain on the country. As Ghana struggles with currency volatility and rising inflation, the protestors believe that addressing this issue could help stabilize the local currency and improve the broader economic landscape. The call for regulatory intervention in this area highlights the broader implications of these shipping line practices on the national economy. The protestors argue that allowing shipping lines to continue siphoning forex without stringent oversight could undermine Ghana’s economic sovereignty and resilience.
By bringing attention to this issue, the organizers are not only seeking to improve conditions for businesses involved in trade and logistics but also for the entire economy. They are calling for government action to regulate the activities of shipping lines, particularly concerning the handling of foreign exchange. This, they argue, will not only benefit local businesses but also strengthen the national currency and ensure that more revenue remains within the country.
Impact on Cost of Living: Consumers Pay the Price
The protestors have pointed out that the burden of the shipping lines’ exploitative practices doesn’t stop at the docks. Instead, it trickles down to affect consumers across the country, driving up the cost of imported goods. When businesses are forced to pay arbitrary charges and excessive fees, these costs inevitably get passed on to consumers. This is especially concerning in a country like Ghana, where inflation and the cost of living have been on the rise in recent years.
Imported goods make up a significant portion of the products available to consumers in Ghana. With shipping costs contributing heavily to the final retail price of these goods, any increase in shipping-related expenses directly impacts the price tags on supermarket shelves. The protest organizers argue that, by reducing arbitrary charges and enforcing more transparent pricing practices in the shipping industry, it will be possible to lower the overall cost of doing business in the country. This, in turn, could lead to lower prices for consumers, helping to ease the financial burden many Ghanaians are currently experiencing.
The protest is, therefore, not just about business grievances it’s about protecting the
livelihoods of ordinary Ghanaians who are feeling the pinch of rising prices. The organizers believe that addressing the exploitative practices of shipping lines is key to alleviating some of the pressure on consumers. In their view, unchecked fees and the weakening cedi have a direct impact on the cost of living, and reforming the shipping industry could help stabilize prices in the long run.
Moreover, with many businesses already struggling under the weight of high operational costs, these arbitrary charges imposed by shipping lines are seen as the last straw. When businesses are unable to absorb these extra costs, they are forced to raise prices or reduce their workforce, both of which have negative consequences for the economy as a whole. As the organizers have stated, this is not just an issue for the logistics sector; it has far-reaching implications for everyone in Ghana.
Demands of the Protest: A Call for Accountability
The protest organizers have laid out several key demands, all of which are aimed at creating a more equitable and transparent shipping industry in Ghana. They have called for the immediate abolition of demurrage charges on weekends and public holidays, a practice they argue is fundamentally unfair since businesses have no control over the clearance process during these periods. The protestors are also demanding refunds for demurrage fees already paid during non-working days, which they view as unjustifiable.
Another major demand is for the elimination of arbitrary fees, such as local administrative charges, container cleaning fees, and empty container fees, which are seen as exploitative and lacking in transparency. The organizers are pushing for shipping lines to negotiate tariffs in accordance with Regulation 5 of the Ghana Shippers’ Authority Regulations, 2012 (L.I. 2190), which provides for tariff regulation and requires shipping lines to engage in meaningful consultations with stakeholders before implementing new fees.
In addition, the protestors are calling for shipping lines to operate on a 24-hour basis, including weekends and public holidays, to prevent unnecessary delays in the clearance process. This, they argue, would reduce the need for businesses to pay demurrage fees in the first place, as they would be able to clear their goods more efficiently. They also want an end to shipping lines engaging in customs house brokerage, a practice they claim is anti-competitive and disadvantages local freight forwarders.
Finally, the protestors are demanding that shipping line fees be pegged to the Ghanaian cedi rather than the US dollar. This would ensure compliance with Bank of Ghana regulations and prevent shipping lines from imposing exchange rate losses on local businesses.
Economic and Social Implications
While the immediate focus of the protest is on the shipping industry, the organizers have made it clear that their concerns go beyond logistics. They view the protest as part of a broader struggle for economic justice in Ghana, and they are calling on the government and the general public to support their cause. The protestors believe that holding shipping lines accountable for their practices could have a profound impact on the country’s economic future.
By addressing the unfair charges and forex leakages, the protestors argue that the government could help stabilize the cedi, boost the competitiveness of local businesses, and ultimately lower the cost of living for all Ghanaians. This, they contend, would
help mitigate the national economic strain and improve the overall well-being of citizens. The protest organizers stress that this issue is not confined to the shipping and logistics sectors, but touches the very fabric of Ghana’s economic landscape. The widespread implications of unchecked shipping line practices—ranging from the weakening of the local currency to the rising cost of consumer goods—are seen as critical concerns that, if not addressed, will lead to further economic hardships.
In their public statements, the protestors have highlighted how essential it is for the government to take decisive action. They argue that allowing foreign shipping lines to impose arbitrary fees and repatriate forex unchecked undermines Ghana’s economic sovereignty. Additionally, they have raised concerns about how such exploitative practices can erode the competitive edge of Ghanaian businesses in the global market. The protest organizers see their actions as part of a broader movement toward economic justice, with the hope that the protest will lead to lasting reforms in the maritime and logistics industries.
Public and Government Support: A Call to Action
One of the core messages of the protest is the need for solidarity across all sectors. The organizers have called on the public and the government to back their efforts, emphasizing that the issue at hand is not only one of fairness in the logistics and shipping industry but also a matter of national importance. They argue that if these exploitative practices continue unchecked, the ripple effects will be felt by all Ghanaians in the form of higher living costs, a weaker currency, and a stagnating economy.
The protest organizers believe that with enough public pressure, the government will be compelled to step in and enforce stricter regulations on the shipping lines. Their goal is to push for comprehensive reforms that include stricter tariff negotiations, the abolition of arbitrary fees, and the enforcement of local currency transactions in line with Bank of Ghana policies.
Additionally, the protest organizers are urging trade unions, consumer rights organizations, and civil society groups to join them in their call for accountability. They believe that a united front is essential in ensuring that the voices of those affected by these exploitative practices are heard. By bringing together a broad coalition of stakeholders, they hope to amplify their message and force shipping lines to engage in meaningful dialogue with the relevant authorities.
Reshaping Ghana’s Shipping and Logistics Landscape
The protest is seen as a pivotal moment in Ghana’s maritime history, with the potential to reshape the way shipping lines operate within the country. The collective action of freight forwarders, trade associations, and concerned stakeholders reflects a growing dissatisfaction with the status quo, and a demand for a more transparent and equitable shipping environment.
The protest organizers believe that their efforts could pave the way for long-term reforms that will benefit not only businesses but also consumers and the economy as a whole. By addressing the arbitrary fees and forex leakages, they argue that Ghana could build a more resilient shipping sector, better equipped to serve the needs of local businesses while fostering fair competition.
They also emphasize that reforming the shipping industry could have broader benefits for the economy. By stabilizing the cedi and reducing the cost of doing business, Ghanaian companies would become more competitive in both domestic and international markets. This could lead to job creation, increased exports, and overall economic growth, which would benefit the entire country.
The Protest: A Movement with Nationwide Support
As the scheduled protest date approaches, it is expected that large numbers of participants from across the country will converge at the GIFF premises in Tema, the protest’s meeting point. The demonstration is anticipated to draw participants from various sectors, including freight forwarders, customs brokers, traders, and even ordinary citizens who are concerned about the rising cost of living. This collective action is a demonstration of the widespread frustration within the logistics and trade sectors over the current state of affairs in Ghana’s shipping industry.
The protest could significantly disrupt the operations of shipping lines within the country, sending a strong message about the need for change. The organizers have stated that they are prepared for sustained action if their demands are not met. They are calling on the government to intervene swiftly to prevent further harm to Ghana’s economy and to ensure that the shipping industry operates in a fair and transparent manner.
In light of these developments, the protest represents a crucial moment for Ghana’s maritime industry. It is a test of the government’s commitment to protecting local businesses from exploitative foreign practices and an opportunity to strengthen the regulatory framework governing shipping operations in the country.
