The Importers and Exporters Association of Ghana (IEAG) has expressed strong support for the recent directive issued by the Ghana Shippers’ Authority (GSA) to streamline and cap Container Administrative Charges (CAC) at the country’s ports, describing the move as timely and long overdue.
In a statement, the Association said the intervention is a critical step toward addressing longstanding concerns within Ghana’s shipping and logistics sector, where businesses have faced excessive and often unclear administrative charges imposed by international shipping lines and their local agents.
For years, importers, exporters, and traders have carried the burden of these costs, commonly referred to as local handling charges, which have significantly increased the cost of doing business and weakened Ghana’s competitiveness as a regional trade hub.
The IEAG noted with concern recent threats reportedly issued by some shipping line workers in response to the directive. It emphasized that such actions should not deter regulatory authorities from implementing measures that serve the broader national interest.
The Association explained that the global shipping industry operates under well-established commercial frameworks, where freight charges, surcharges, and ancillary fees form the primary revenue streams for shipping lines.
Ocean freight, it noted, is the core income source for carriers, covering vessel operations, fuel costs, and capital investments. In addition, demurrage and detention charges, which are applied when containers overstay at ports or outside terminals, are also collected and retained by shipping lines, contributing significantly to their earnings.
These revenues are typically repatriated to parent companies abroad, leading to substantial foreign exchange outflows with limited direct fiscal benefit to the Ghanaian economy. Against this backdrop, the IEAG argued that claims suggesting Container Administrative Charges are necessary for operational sustainability in Ghana are misleading.
Clarifying the cost structure within the shipping industry, the Association stressed that all legitimate port-related expenses incurred by shipping lines, including port dues, pilotage, towage, berth charges, and terminal handling costs, are already incorporated into the ocean freight rates charged to importers and exporters.
According to the IEAG, this approach aligns with standard shipping economics, where freight pricing follows a cost-recovery and margin-based model that accounts for operational expenses at both origin and destination ports.
Whether freight is prepaid at origin or collected at destination, these costs are ultimately borne by the cargo owner, not the shipping line. As such, the imposition of separate Container Administrative Charges at the destination point effectively results in a duplication of cost recovery.
The Association maintains that this practice forces Ghanaian businesses to pay twice for the same services, rendering the charges both unwarranted and outdated.
Providing historical context, the IEAG explained that the Container Administrative Charge was introduced in the late 1980s, when vessels calling at Ghanaian ports relied on ship-mounted equipment to handle cargo due to limited port infrastructure.
However, the Association noted that this justification is no longer valid. Ghana’s ports, particularly Tema and Takoradi, are now equipped with modern container handling systems, including ship-to-shore gantry cranes, rubber-tyred gantry cranes, automated terminal operating systems, and advanced quay and yard facilities capable of accommodating large vessels.
These technological advancements have eliminated the operational challenges that initially justified the introduction of the CAC, making its continued application technically indefensible and economically exploitative.
On concerns raised about employment and staff welfare, the IEAG described such arguments as misplaced. It explained that shipping lines operating in Ghana function as agents of international principals, who are responsible for covering all operational costs, including salaries, insurance, pensions, and other employee benefits.
The Association emphasized that local administrative charges such as CAC are not intended to fund employee compensation but have instead evolved into additional revenue streams for shipping companies.
It argued that Ghanaian businesses should not be compelled to bear unjustified charges to subsidize employment obligations that fall under the responsibility of multinational shipping corporations.
Highlighting the broader economic implications, the IEAG pointed to industry estimates indicating that Ghanaian traders paid approximately GH₵1.69 billion, equivalent to about USD 108.32 million, in Container Administrative Charges in 2024 alone.
This, the Association said, represents a significant financial burden on trade and contributes to high import costs and inflationary pressures within the economy.
At a time when Ghana is pursuing policies aimed at enhancing trade facilitation, improving cost competitiveness, and positioning itself as a regional logistics hub, such charges are counterproductive and undermine these strategic objectives.
The IEAG therefore fully endorsed the Ghana Shippers’ Authority’s decision to cap the Container Administrative Charge at GHS 550 per Twenty-Foot Equivalent Unit (TEU), effective May 1, 2026.
According to the Association, the cap represents a reasonable and balanced regulatory measure that protects shippers while allowing room for operational flexibility within the shipping industry. It also marks a step toward eliminating unjustified cost build-ups across the logistics value chain.
The Association reiterated that the era of unchecked and opaque charges within Ghana’s shipping and logistics sector must come to an end.
It commended the Ghana Shippers’ Authority for taking decisive action and urged all industry stakeholders to comply fully with the directive in the interest of fairness, transparency, and national economic growth.
The IEAG further warned that any attempts to resist or undermine the reform through threats or pressure tactics would not succeed, stressing that the directive aligns with the broader goal of creating a more efficient and equitable trade environment in Ghana.
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