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    You are at:Home»News»Freight forwarder sues shipping lines over unapproved port charges
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    Freight forwarder sues shipping lines over unapproved port charges

    Papa LincBy Papa LincJanuary 24, 2025No Comments3 Mins Read0 Views
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    Freight forwarder sues shipping lines over unapproved port charges
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    The case is expected to be heard in court in the coming weeks. The case is expected to be heard in court in the coming weeks.

    Chairman of the Ghana Institute of Freight Forwarders (GIFF) Tema District, Johnny Mantey, has filed a lawsuit against the Shipowners and Agents Association of Ghana (SOAAG) and 18 other shipping lines and agents operating in the country over alleged unauthorised charges and rising costs at the ports.

    In an interview with GhanaWeb Business, he stated that the legal action aims to address a series of contentious practices that have sparked widespread concern among freight forwarders and traders.

    He added that the dissatisfaction within the trading community led to the picketing of shipping lines on September 24, 2024, and November 6–8, 2024.

    Forwarder Mantey explained that his legal action, if successful, would not only provide financial relief to affected customers but also set a precedent for regulatory compliance within the shipping industry.

    He further stated that the move would reinforce the principle that all stakeholders, including global shipping lines, must operate within the bounds of Ghanaian law.

    “My leadership in this legal battle is viewed as a continuation of my enduring commitment to safeguarding the interests of the trade community. This lawsuit could mark a turning point in Ghana’s maritime and trade operations,” he told GhanaWeb Business.

    Mantey argued that eliminating unapproved fees and restricting unfair demurrage charges by shipping lines could lead to significant savings for businesses on import-related costs.

    He noted that these savings would enable businesses to allocate more resources to growth and innovation, improving overall economic activity.

    Additionally, reduced import costs would lessen the demand for foreign currency from the repatriation of forex by shipping lines, potentially easing pressure on the Ghanaian cedi.

    Also, a stronger cedi would contribute to lower import costs and enhance the country’s economic resilience.

    Earlier, some freight forwarders in the country had accused some shipping lines of exploiting the freight forwarding business.

    They claimed that these lines used their greater financial power to monopolise the sector and push local businesses out.

    These actions by shipping lines, according to the freight forwarders, violate Section 43(1) of the Customs Act, 2015 (Act 891), which reserves the business of customs house agents for entities wholly owned by indigenous Ghanaians and licensed by the Commissioner-General of Customs.

    Below are the specific reliefs Forwarder Mantey requests the court to issue definitive orders on:

    Declaration of Illegality of Unapproved Fees

    Forwarder Mantey asserts that the imposition of fees not approved by the Ghana Shippers’ Authority constitutes a violation of Ghanaian law. The lawsuit calls for a ruling to declare such fees illegal and to prohibit their future implementation.

    Prohibition of Counting Weekends and Holidays for Demurrage

    Shipping lines’ practice of counting weekends and public holidays as part of the demurrage period is described as unjust and unlawful. The legal action seeks an end to this practice, which adds undue financial pressure on the trading public.

    Refund of Illegally Collected Charges

    Forwarder Johnny Mantey is demanding the refund of all monies collected through these unapproved and allegedly illegal charges. He contends that customers have been unfairly burdened, and justice requires restitution.

    This legal action comes in the wake of growing dissatisfaction within the trade community regarding the pricing and operational practices of shipping lines in Ghana.

    The frustrations reached a tipping point on September 24, 2024, when industry stakeholders staged a massive protest to voice their grievances.

    This was followed by a three-day picket from November 6 to 8, 2024, at the offices of various shipping lines, underscoring the collective determination of stakeholders to demand accountability.

    See a copy of the writ of summons below:

    SA/MA

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