GSA schools MDAs, stakeholders on UCL-bemoans high demurrage and rent charges

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The Ghana Shippers’ Authority has held a day’s seminar on Uncleared Cargo List (UCL) for Government Ministries, Departments and Agencies, as well as stakeholders in the shipping industry.

Held on Thursday, June 27 2019, the seminar sought to bring to the fore, the challenges that uncleared cargo at the ports pose to stakeholders and the conduct of business in the country’s ports.

It also sought to afford the various stakeholders including the Ghana Ports and Harbours Authority, the Ghana Institute of Freight Forwarders, the Association of Customs House Agents Ghana, the Customs Division of the Ghana Revenue Authority and the MDAs the opportunity to deliberate on ways of helping curtail the trend to ensure that cargoes are not left in the ports.

In her welcome address, the Chief Executive Officer of the Ghana Shippers’ Authority, Ms. Benonita Bismarck bemoaned the high demurrage and rent charges at the ports, describing it as one of the key banes of shippers in the country.

‘’Studies undertaken by the Authority show that in 2017 alone, USD 76 million and GH¢ 48 million were paid by importers as demurrage and rent respectively.  With major policy interventions – key among which is the nationwide Demurrage Sensitization Campaigns organized by the Authority in collaboration with key industry stakeholders, the estimated demurrage amounts paid in 2018 reduced to US$59 million and there are indications that 2019 will be even better’’ she averred.

On the issue of the UCL, Ms. Bismarck opined that ‘’ The Authority’s research has shown a high propensity for consignments of MDAs to overstay at the ports with dire financial consequences.  While there are a number of reasons why goods may overstay in the port, one of the major processes that affects the clearance for some category of imported goods and which results in consignments reaching the Customs UCL threshold, is the exemption or permit regime’’.

She was emphatic that the seminar was aimed at highlighting challenges being faced by MDA’s and how to avoid delays in the cargo clearance process, explaining that delays in cargo clearance comes along with dire consequences including accrual of rent and demurrage charges.

‘’If we were take a scenario of Twenty 40” Containers of Hospital Supplies or Equipment, that stays in the port for 100 days before they are cleared, we would notice that at the current demurrage rate, the Agency would be required to pay US$167,640.00 (GHS 880,110) for demurrage alone. (For 261 days[1] – the amount shoots up to US$460,800 (GHS 2,419,200.00)’’ Ms. Bismarck added.

The Chairman for the occasion Dr. George Dawson Amoah on his part stressed the importance of playing by the rules of the shipping industry by all stakeholders to enable Ghanaian shippers reap the benefits of global trade.

‘’The port environment and indeed for that matter the maritime industry is governed by rules and regulations which must be followed to ensure smooth, efficient and cost effective operations.

The importance of trade facilitation is thus crucial if Ghanaian shippers are to reap the benefits of global trade’’.

The Manager incharge of Freight and Logistics at the Ghana Shippers’ Authority, Mr. Fred Asiedu Dartey who delivered a presentation on the subject said UCL has adverse effects on all parties connected to a particular consignment including the shipping agency, the terminal as well as the consignee.

‘’An improved UCL administration is relevant for ridding our ports of abandoned cargo’’ he said.

He also recommended a massive sensitization and awareness creation for MDAs and shippers in general on the adverse effects of UCL, particularly demurrage and rent charges.

 

Source: BestNewsGH.com


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Kennedy Mornah is an Award Winning Ghanaian Journalist with over two decades of experience in the Ghanaian Media landscape spanning the electronic, print and digital media. He is a Media Consultant, a Corporate MC, Radio and TV Host, Founder and Publisher of the Maritime and Transport Digest Newspaper, Businessman, a Go getter and an optimist. He has worked for renowned media organizations including Diamond Fm in Tamale, Luv Fm in Kumasi, Oman Fm in Accra and Starr Fm in Accra In 2017 he received the Reporter of the Year Award at the Ghana Shippers Awards in Accra, Ghana.

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