You are here: HomeNews2022 09 24Article 1629422

Business News of Saturday, 24 September 2022

Source: thebftonline.com

Cocoa freight rates rise by 5%, 10% for containerised shipment, bulk shipment

Cocoa is a key export commodity for Ghana Cocoa is a key export commodity for Ghana

The Cocoa Marketing Company (CMC), Ghana Shippers Authority (GSA) and 18 shipping lines have agreed to increase basic freight rates for the 2022/2023 cocoa season to all destinations but the United Kingdom (UK).

As a result, basic freight for containerised shipments has gone up by 5% and basic freight has shot up by 10%.

In addition, Bunker (Fuel) Adjustment Factor (BAF) to all destinations except UK has been increased by 2 percentage points from 28 – 30%.

These were reached after a marathon meeting at this year’s Cocoa Freight Negotiation Conference held at the Hilton Sorrento Palace, Sorrento, Italy on September 20, 2022.

This means the rate calculated per tonne, for shipping the commodity to the various locations across the world currently stands at £31.50 to the United Kingdom (UK) for both bagged and bulk; to the Northern Continent €54.02 for bagged and €56.60 for bulk; to Estonia €61.74 for bagged and €64.70 for bulk; to Mediterranean Europe €60.64 for bagged and €63.53 for bulk; to the Far East US$100.44/106.09 for bagged and to Brazil US$116.24 for bagged and US$121.78 for bulk.

The reasons that resulted in the decision predominantly were events in the global shipping market, which include increasing charter rates, container shortage and rising bunker prices. Also, the consideration of the need to keep a competitive freight rate for Ghana’s cocoa, especially in the light of competition from neighbouring countries played a role.

The Chief Executive Officer of the Ghana Shippers Authority, Ms. Benonita Bismarck, on her part used the occasion to acknowledge the cooperation and support of the shipping lines who have kept faith with the nation by promoting trade and serving as trusted conduits between the Cocoa Marketing Company and the buyers for the international transportation of Ghana’s cocoa.

Managing Director of the Cocoa Marketing Company (CMC), Vincent Okyere Akomeah, was confident that the agreed rates will be a win-win for the government and the shipping lines.

He said the move would help to save the government substantial revenue as the shipping lines would get good and reliable business.

He was optimistic of a good cocoa year with the help of key stakeholders such as the GSA, the shipping lines, buyers and insurers, among others.

Some of the shipping lines who were present at the conference to agree on prices include Maersk Line, Mediterranean Shipping Company, ZIM Integrated Shipping Services Ltd, Grimaldi, COSCO Shipping Lines, Messina Lines, Ocean Network, CMA-CGM and Arkas.

Watch the latest episode of BizTech below:



Join our Newsletter