Freight forwarders got less than half of their anticipated increment in fees and charges for the clearing services that they will render at the country’s ports for the next two years.
The Committee of Freight Forwarder Associations (CoFFA), which led the negotiation with the Ghana Shippers’ Authority (GSA), had tabled a 250percent increment in service rates to reflect current inflation and other market conditions.
The last time the rates were revised was in 2016.
Speaking on GPHA’s Eye on Port programme, 1st Vice President of the Ghana Institute of Freight Forwarders (GIFF), Paul Kobina Mensah, described the new rates as “woefully inadequate” but added that the fraternity embraced them to promote trading activities for shippers who are their primary clients.
“In 2016, the dollar rate was GH3.9cedis and at the time of the negotiations it was around 11 cedis. If you look at the margin it is over 300percent. Inflation was 40.4 as against 17.5 in 2016. Putting these together, the best we could ask for was 250percent,” he explained.
He added: “The rates as we have today will last for two more years of which economic uncertainties are expected,” he lamented.
For conventional general cargo such as steel products, plates, drums, of up to 100 metric tons, will cost a maximum charge of 1,200cedis with every additional ton costing 6cedis.
A saloon car will cost an importer 1300cedis for the services of a freight forwarder. For containerized cargo, a 40 footer container will cost a shipper 2800cedis whereas it costs 2000 cedis for a 20 footer container.
The negotiated rates which would last for a period of two years, is expected to guide importers and exporters plan their operations.
Although factors such as operational costs, exchange rate volatility and inflation could stifle the impact of the upward review, Mr. Mensah was optimistic that increased volumes of cargo they anticipate to clear could make up for the deficit.