After a call by the Minister of Transport, Mr. Fifi Kwetey to abolish the Terminal Handling Charges (THC), which shipping lines charge shippers upon arrival of their goods, some shipping lines have defied the directive and are still charging these fees to the distress of shippers.
Many would have envisaged the THC brouhaha to be over after the Minister called for the suspension of it and ordered for an investigation into the issue by Ghana Maritime Authority (GMA) in August.
The Ghana Maritime Authority duly presented its report to the Transport Minister after which the Minister ordered the immediate abolishing of the THC.
Fast forward from that time to date and it only looks like the issue is yet to reach its apogee.
Speaking at a press forum to vehemently chastise the conduct of shipping lines who have adopted a negative posture towards the minsters directive, Business Associations in Ghana led by the Chief Executive Officer (CEO) of the Association of Ghana Industries (AGI), Mr. Seth Twum Akwaboah who read a joint statement entreated the shipping lines to as a matter of urgency adhere to the Minister’s directive by halting the collection of the charge forthwith.
“Unfortunately some shipping lines are still imposing the THC on shippers in contravention of the minister’s directive. The conduct of these shipping lines clearly defeats government’s efforts towards reducing the cost of doing business in our ports through the trade facilitation measures and infrastructure investments” he stated
According to him, they represent the critical mass of the Ghanaian business community and will do everything within its powers and mandate to give the importers and exporters community some respite from the rough terrain of doing business in Ghana mainly the high cost of doing business as a result of exorbitant and unmerited local charges.
“If the shipping lines do not stop imposing the THC on shippers, and the authorities do not take any appropriate action to stop them, we will take further actions necessary to ensure that shippers in the country are not treated with disdain.” He further averred
According to the coalition of business associations, some shipping lines are “blatantly” imposing the THC on importers and exporters contrary to the directive from the sector minister and are therefore calling for heavy sanctions on the defaulting, recalcitrant and intransigent shipping lines.
MSC Ghana Ltd., PIL Ghana Ltd., CMA CGM Ghana Ltd., Maersk Ghana Ltd., and Intermodal Shipping Agency Ghana Ltd., have been identified as the shipping lines that are flouting the directive.
The conduct of the shipping lines, according to the business groups, defeats government’s efforts at reducing the cost of doing business in the country’s ports through trade facilitation measures and infrastructural investments.
A reaction from the shipping lines
Meanwhile the Ship-owners and Agents Association of Ghana (SOAAG), the umbrella body of shipping lines/agents operating in the country, have debunked claims that its members are imposing THC as an illegitimate charge on importers and exporters.
Vice-President of the association, Adam Imoro Ayarna, told this reporter that shipping lines were only acting on the arrangement they have with their clients—importers and exporters—whereby the two parties agree on where the THC should be paid.
He stressed that the THC is not an illegitimate charge as is being peddled about but rather a valid cost that shippers are already paying for.
He averred: “It is not being treated as a local charge the shipping lines are adding it to their freight. It is the shippers who are saying that they have agreed with their consignees to pay destination handling charges.
“I don’t see the qualms about it; it’s only the issue of confusion and there is the need for education. If consignees—importers—do not arrange with their shippers to pay for the destination THC locally, the shipping lines won’t demand of it from them.”
According to Mr. Ayarna, when it comes to the scrapping of the THC, it is more in the court of the shippers than the shipping lines/agents.
On calls for a refund of monies that importers have paid to the shipping lines in the aftermath of the minister’s directive annulling the introduction of the THC as a local charge, the SOAAG boss argued: “The charge is part of the negotiation between the consignee and the shipper, unless they—the consignees–can prove that the charge was not part of what they agreed with the shipper.
“If they can prove then, they can get their monies back, and in that case, the shipping line will go back to the shipper for that charge.”
President Mahama’s Timely Intervention
The Association of Ghana Industry (AGI) has lauded the firm directive by President John Mahama asking shipping lines to halt the Terminal Handling Charges (THC) at the ports.
President John Mahama has sent a strong signal to shipping companies to halt the implementation of the Terminal Handling Charges (THC).
According to him, the fee has no legal backing and need not be imposed on Ghanaian shippers. He was speaking at an event to mark the first anniversary of the national Single Window Project.
The AGI believes the final warning by President Mahama will stop the shipping lines from charging the THC. According to the president of the AGI, James Asare Adjei, Ghana loses as much as 70 million dollars to foreign countries through the charges.
“Shipping lines cannot blatantly ignore directives from our ministers in the country; neither can they also siphon over 78 million dollars from the economy as a result of this illegal fee they are collecting.” he said.
