The Ghana Institute of Freight Forwarders (GIFF) wants the Ministry of Transport to set up a committee to look into what it describes as arbitrary fees and charges in the shipping business that could stifle the gains of the sector on the economy.
The said fees and charges that the institute is disputing include administrative or container release fee, container cleaning and detention fees and demurrage from shipping lines, as well as interest charges on delayed payment of duties and the mode of calculation of state warehouse rent by Customs.
“That’s one very sour point in our business right now; and one thing we are going to do this year is to push for these fees and charges to be regulated,” Eddy Akrong, president of the institute said of the nuisance charges as he described them.
“If we are not careful, it’s going to go haywire and that’s not good for the business. We want to attract business to our ports and we don’t want these fees to pose a hindrance,” he stated in an exclusive interview with Business24.
Apart from freight rate, which is the amount paid to a carrier—either seaborne or airborne—for the transportation of goods from the point of origin to an agreed location, there are also some fees and charges that are associated with shipping.
An importer, after paying freight on his/her consignment, is charged an administrative fee or container release fee for the processes leading up to the release of the consignment by the shipping line.
There is also container a cleaning fee, container detention fee—a form of surety to the safe return of an empty container to the shipping line by an importer—and demurrage on containers that overstay at the port.
Also, if an importer fails to clear his/her goods within one week, Customs charges an interest on the duty applicable.
The GIFF boss argued that most of these costs, especially those from the shipping lines, do not commensurate the service that is rendered hence the call for some form of regulation from the mother ministry.
“Weekends and public holidays are counted as part of demurrage-free days even though they [shipping lines] do not work on those days.
Also, why do I [an importer] have to pay about GH¢250 for cleaning an empty container or GHؓ¢2,000 for my container to be released to me,” the GIFF boss quizzed.
“If you look at the Trade Facilitation Agreement (TFA) that we are signatory to, all fees and charges should be commensurate with the service provided,” Mr. Akrong further argued.
On the interest charge on duties and calculation of warehouse rent, Mr. Akrong admitted that it was a matter of law and that his outfit intends to take it up with the Commissioner of Customs for subsequent action.
“Mind you this [duty] is not a loan; it’s money that the importer is supposed to pay to government. We need to cut cost so that business can be attractive and interest charge is one interesting area to look at,” he said.