Shipping lines, terminal operators waive demurrage, rent charges
Importers of goods into the country were exempted from paying time-related penalties on cargo that they shipped through the country's ports between March 30 and April 19.
The Ghana Ports and Harbours Authority (GPHA), terminal operators and shipping lines waived the demurrage and rent charges for the importers to help them cope with the financial challenges that the novel Coronavirus had imposed on their businesses.
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The move was in response to a request from the government through the Ghana Shippers' Authority (GSA) appealing for an additional 21-day free period for importers because of the partial lockdown which prevented majority of them from clearing their goods within the mandatory seven-day free period required.
In an interview with the Daily Graphic yesterday, May 3, the Head of Freight and Logistics at the GSA, Mr Fred Asiedu-Dartey, said all major shipping line operators did respond positively to the government’s request.
“As their contribution to the fight against COVID-19, major shipping lines and other operators issued a customer advisory indicating that demurrage had been waived for 21 days,” he said.
At the Tema Harbour, the Daily Graphic observed that three shipping lines which comprise Maersk Line (market leader), PIL Ghana Limited and Grimaldi Lines Ghana had all waived demurrage charges in response to the request.
Demurrage and rent charges
In Ghana, demurrage, which is a penalty charge imposed by shipping lines for delay in clearing cargo, attracts between $22 and $48 per 20-foot container each day after the free mandatory seven-day period while double of the above-mentioned charges apply to a 40-foot container.
Terminal operators also charge rent for storage of cargo at the port and it attracts between GH¢11.40 and GH¢105.45 each day depending on the type of cargo in storage.
Mr Asiedu-Dartey explained that the implication of the exemption meant that goods due for clearance at the ports after the free mandatory period were ceded off demurrage and rent between March 30 and April 19.
“What this development means is that within the period March 30 and April 19, if an importer has demurrage and rent accruing on his or her cargo, it was waived,” he said.
On rent, Mr Asiedu-Dartey said all the terminal operators responded positively to the government’s request and waived all rent that had accrued during the lockdown period.
“As soon as the communication requesting the waiver got to them, GPHA issued a letter to all the terminal operators asking them to comply and I can tell you on authority that they all adjusted their systems in order to waive off rent,” he said.
Principal decision
Asked whether there were difficulties in getting the shipping lines to agree with the waiver, the Head of Freight and Logistics at the GSA said all of them were in agreement and explained that the shipping lines were international firms with local agents in the country and therefore approval for the waiver had to come from their principals.
“So, when we forwarded the request from the government to the agents of the shipping lines in the country, they told us that the decision on demurrage was at the level of their principals.
“And because the processes for waiver vary from one company to the other, we only had to keep our fingers crossed.
“Fortunately, because of the goodwill between us the shipping lines responded positively,” he added.
Support for clients
The Vice-President of the Shipowners and Agents Association of Ghana (SOAAG), Mr Adam Imoru Ayarna, said the shipping lines were happy to support their customers during the difficult time.
He said the shipping lines did not only waive demurrage charges because the government made an appeal or request, but they did so also because they were willing to support their customers.
“Even before the request for waiver, most shipping lines had told their clients to report to them if they had difficulties in clearing their goods as a result of the lockdown or restrictions on movement,” he said.
Maersk Line commended
The President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, expressed his gratitude to the terminal operators and the shipping lines, especially Maersk Line, for taking the lead in the waiver on demurrage and rent.
“We want to thank Maersk Line for leading the charge and assure them of a strengthened working relationship,” he added.