The Ghana Shippers’ Authority (GSA) is taking steps to enhance transparency and accountability in the Shipping and Logistics sector by signing Service Level Agreements with stakeholders.
These agreements aim to ensure that both shippers and shipping service providers fulfill their obligations, promoting economic growth.
The agreements will outline the responsibilities of shipping service providers towards shippers, streamline port clearance processes, clarify time-related shipping costs, provide guidance on cost avoidance strategies, and define the role of the GSA.
Mr. Kwesi Baffour Sarpong, CEO of GSA, announced these initiatives during a workshop on “Avoiding Demurrage and Rent” for Ministries, Departments, and Agencies (MDAs) held at the Shippers’ House in Accra.
The speech was delivered on his behalf by Mrs. Sylvia Asana Dauda Owu, the Director of Operations at GSA, on Tuesday, 23rd April 2024.
Mrs. Owu stated, “The GSA is actively working to enforce the provisions outlined in the Ghana Shippers’ Authority Regulations 2012 (L.I. 2190), with a specific focus on Section 6, which outlines service standards designed to uphold minimum quality levels in shipping services provided to shippers.”
Importers have long struggled with demurrage and rent charges, often facing financial challenges in their shipping activities. The Ghana Shippers’ Authority (GSA) has received numerous complaints from shippers regarding demurrage fees imposed by shipping lines, despite delays not being the fault of the shippers.
To tackle this issue, the GSA launched the “Avoiding Demurrage and Rent” seminar series in 2018. The initiative aims to educate shippers on the importance of initiating clearance procedures for goods before their arrival at the port, thus reducing the likelihood of incurring demurrage charges.
The GSA’s focus on Ministries, Departments, and Agencies (MDAs) was driven by research showing that government agencies are among the top payers of demurrage charges. Mrs. Sylvia Asana Dauda Owu reiterated the Authority’s commitment to establishing a “demurrage-free port” for the benefit of shippers and the national economy. She urged MDAs and State-Owned Enterprises’ leadership to expedite the clearance of consignments from ports to minimize avoidable costs incurred using state resources.
Mrs. Monica Josiah, Head of Shipper Services and Trade Facilitation Department at GSA, appealed to MDAs responsible for granting permits and licenses to shippers to be mindful of their services to avoid demurrage charges. Participants, including freight forwarders and MDA representatives, emphasized the importance of staying informed about new developments for cost-effective business operations.