Shippers’ Council applauds Ghana Transport Minister

Tuesday, 13 September 2016 00:05 - - {{hitsCtrl.values.hits}}

The Sri Lanka Shippers’ Council (SLSC) in a statement hailed the Ghanaian Minister of Transport for recognising the plight of its shippers.

The SLSC was reacting to a report which quoted Minister Fiifi Kwetey calling for shipping lines to stop charging “killer tariffs”. The Minister had said that “Terminal Handling Charges (THC) cannot be introduced at the ports in Ghana as a local charge.”

The SLSC said shipping lines such as Pacific International Line (PIL), Maersk Line, Mediterranean Shipping Company (MSC), CMA CGM, Arkas Lines and UASC want to impose an average of $ 150 as a Terminal Handling Charge for a 20-footer container and $ 265 for a 40-footer. The Minister of Transport Fiifi Kwetey has directed shipping lines operating to and from the seaports of Ghana to halt the introduction of the Terminal Handling Charges (THC).

In a statement on Friday the Minister said: “Terminal Handling Charges (THC) cannot be introduced at the ports in Ghana as a local charge.”

“Terminal Handling Charges may be introduced as part of the freight payable by the shipper at the port of origin in accordance with the appropriate INCOTERMS,” he continued. This follows a petition from the coalition of business representing a critical mass of shippers and traders in the country. They include the Association of Ghana Industries (AGI), Ghana National Chamber of Commerce (GNCC), Ghana Chamber of Mines, Federation of Associations of Ghanaian Exporters (FAGE), Ghana Union of Traders Associations (GUTA) and the Greater Accra Regional Shippers Committee (GARSC).

The Transport Ministry earlier ordered a temporary suspension of the THC which the shipping lines failed to comply with. In the petition to the Ministry, the coalition said the “THC would cost the already burdened Ghanaian shippers over $ 78 million per year and, knowing the history of these local charges, this figure will definitely increase astronomically.” The directive to stop the THC follows a directive by the Ministry to the Maritime Authority to constitute a committee to investigate claims of the shippers and traders.

The SLSC said that it was In fact the Sri Lankan Government which in 2014 first recognised this situation and brought about the required laws to ensure that fair trade and the golden rule of contractual parties being responsible for all charges be honoured, according to the International Chamber of Commerce INCO terms 2010 rules.

There are still a handful of individuals who were still trying to bring back the old ways of collecting a so-called “THC” cost that is not even mentioned in the port tariff’s paid by shipping lines to the port, the SLSC stated.

“With reference to the recent article in the Daily FT by “NVOCC” operators, clearly misguided or not clear about local regulations, they are trying to mislead the authorities once again.

Sri Lankan law is simple and clear. You can charge any cost in an all-inclusive freight term, be it prepaid or collect. And the guiding principle is based on the contractual party being the paymaster, where fair trade and transparency are the cornerstones,” explained the SLSC.