The Vice President of the Ghana Union of Traders Associations (GUTA), Joseph Paddy, has welcomed the decision by the Ghana Shippers’ Authority to postpone the implementation of the revised Container Administrative Charge until July 1, but insists the fee should be abolished entirely.
Speaking on Joy FM’s Super Morning Show on Friday, May 15, Mr. Paddy described the postponement as only a temporary relief for businesses already burdened by high port charges.
“Half a loaf is better than none,” he remarked.
According to him, the business community had initially demanded the complete removal of the charge. However, following discussions with the Ministry of Transport and the Ghana Shippers’ Authority, authorities opted for a temporary reduction and further stakeholder consultations instead.
“We were looking for the total scrap of those charges, but by the wisdom of the shipping authority and then the Trade Ministry, they proposed to move it to July so that we can have another stakeholder engagement,” he explained.
Mr. Paddy argued that the cost of doing business at Ghana’s ports remains significantly higher than in neighbouring countries, making Ghana less competitive within the sub-region.
He revealed that he was part of a delegation that visited countries including Togo, Nigeria, and Côte d’Ivoire to compare port charges and operational costs.
“We realised that ours is on the higher side,” he stated, adding that the findings were later presented to the Ghana Shippers’ Authority.
One of GUTA’s major concerns, he said, is the Container Administrative Charge imposed by shipping lines — a fee he claims is not charged in neighbouring countries despite the same shipping companies operating across the region.
“Most of the ships that use our ports are the same ships that operate in neighbouring countries, but they do not charge this administrative fee there,” he said.
Mr. Paddy explained that importers in Ghana are currently charged $165 per twenty-foot equivalent unit (TEU) container as an administrative fee, even though the charge is local.
“And this administrative fee is a local charge, but they bill it in dollars,” he noted.
He questioned why importers should be made to pay additional administrative charges when such costs are already embedded in freight charges.
“How do you charge an administrative fee when we have already paid freight? Administrative costs are already included in freight charges,” he argued.
He further criticised the practice of charging the fee per container rather than per bill of lading.
According to him, importers with large consignments end up paying huge sums in administrative charges.
“So imagine having 100 containers on one bill of lading and paying $165 on each container. That amounts to about $16,500 in administrative fees alone,” he said.
Mr. Paddy disclosed that following discussions with the Ministry of Transport, authorities agreed to temporarily reduce the fee from $165 to $65 pending further consultations.
“The Minister of Transport proposed that we remove the $100 and maintain the $65 for now,” he explained.
Despite the temporary reduction, he maintained that the business community still wants the charge completely scrapped.
“There is simply no justification for this administrative fee,” he stressed.
He also revealed that some employees within shipping lines had petitioned the government against plans to remove the fee entirely, leading to a temporary suspension of the decision.
According to him, shipping lines continue to generate substantial revenue from administrative and demurrage charges imposed on importers.
“If I tell you the amount of money leaving this country through these charges, you would be shocked,” he claimed.
Mr. Paddy further criticised the continued imposition of demurrage charges during weekends, public holidays, and even during the COVID-19 lockdown period when many businesses were not operating.
“Even on weekends and public holidays when offices are closed, they still charge demurrage. During COVID, when businesses were shut down, they continued charging demurrage,” he complained.
He warned that the high cost of doing business at Ghana’s ports is driving importers and transit traders to neighbouring countries.
According to him, landlocked countries such as Niger, Burkina Faso, and Mali, which once relied heavily on Ghana’s ports, are increasingly diverting cargo to other ports in the region due to the high charges.
“The cost of doing business at our ports is expensive, and people are moving elsewhere,” he said.
Comparing Ghana’s ports to those in Togo, Mr. Paddy said the difference in shipping activity was noticeable.
“If you go to Togo and see the number of ships there, the difference is clear,” he stated.
He warned that Ghana could lose more business opportunities unless urgent measures are taken to reduce port charges and improve competitiveness.
“We want to make our ports more attractive so that we can attract more cargo and more business,” he said.
“If we can eliminate some of these charges and make the ports more competitive, it will benefit everyone. That is what we are looking forward to,” he added.