Demurrage payments decline from US$76m in 2017 to US$19m in 2021 – GSA

The Ghana Shippers Authority has said the estimated demurrage payments made in the country declined from US$76 million to US$27 million in 2019 with a further decline to US$19 million in 2021. Demurrage is a charge payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed. According to Chief Executive of the Authority, Benonita Bismarck, the downward trend of the figures can be attributed to effective sensitisation and government initiatives especially in the cargo clearance process under the Paperless Port Project and pre-arrival declaration in the ICUMS. Speaking at a seminar organised for stakeholders on demurrage on October 20, Ms. Benonita Bismarck said the GSA aims to further reduce the payment to the barest minimum. She noted that this is vital especially in the face of recent increases in the demurrage daily rates by some shipping lines, coupled with the current exchange rate volatility. “One of the issues that relate to the subject is the Authority's position for the counting of demurrage free days which commences when the cargo is discharged; thus, when it is made accessible to the consignee or his agent at the designated terminal," the GSA boss said. "This viewpoint, while reflecting global best practice, is also held by the majority of the Shipping Lines/Agents engaged and we, therefore, urge all the others to align, to ensure certainty for shippers at the ports," she added. She further pointed out that the GSA’s research recently revealed a penchant for consignments of State-Owned Agencies to overstay at the ports with severe financial consequences. “While these consignments are not forfeited to the State for purposes of auction, their eventual clearance is accompanied by huge demurrage and rent charges that would have accumulated over the period at the ports.” “Information gathered randomly from five Shipping Lines/Agents operating in Ghana revealed that over 500 containers consigned to various State-Owned Agencies remain uncleared at the ports as at September 9, 2022,” she revealed. The GSA boss also called on Chief Directors, Chief Executives, Managing Directors and other relevant Officers of MDAS/SOEs, to take urgent action in ensuring consignments are expeditiously cleared from the ports to mitigate the use of state resources for such avoidable costs. Ms. Bismarck however said her outfit remains committed to the protection and promotion of stakeholders within the shipping and cargo clearance space. MA/FNOQ Watch the latest episode of BizTech below: