New GSA levy sparks concerns over freight costs and viability of ports

05-12-2024

New GSA levy sparks concerns over freight costs and viability of ports

The introduction of a new levy on shipping lines, outlined in the Ghana Shippers’ Authority’s (GSA) new legislation, is raising alarm within the maritime industry.

Stakeholders warn that the levy could significantly increase freight costs, potentially prompting major shipping lines to scale back operations or reconsider their presence in Ghana’s ports.

Concerns over the levy have sparked debates about its impact on Ghana’s bustling port economy as any additional costs could make Ghana less attractive as a regional trade hub, with far-reaching consequences for local businesses, government revenue, and jobs.

Should shipping lines withdraw or reduce services, the resulting disruptions could harm supply chains, increase shipping costs, and force traders to rely on neighboring ports, adding logistical and financial burdens.

Experts caution that such developments could erode Ghana’s reputation as a business-friendly destination, jeopardizing foreign investments and the broader port economy.

The tension surrounding the new levy is exacerbated by protests and reported threats against shipping agents, allegedly orchestrated by some freight forwarders and clearing agents.

Some incidents, including the invasion of shipping company premises, have heightened concerns about the safety of industry representatives and their investments. While no casualties have been reported, these actions could lead to legal battles if care is not taken.

Click here for source.

 

 

GNBCC | News