Frozen food importers threaten boycott over GHS 720 container fee cap defiance

    Ghana's frozen food importers are threatening industrial action and a boycott of shipping lines that continue to charge above the GHS 720 regulatory cap for container fees, despite a High Court ruling affirming the directive.

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    Ghana’s frozen food importers have threatened industrial action and a boycott of shipping lines that continue to charge above the GHS 720 regulatory cap for container fees. This defiance persists despite a High Court ruling that affirmed the directive. The Exim Frozen Foods Association of Ghana (EFFAG) issued a press statement on July 27, accusing shipping operators of ignoring the established fee limit.

    Shipping lines are reportedly still charging Container Administrative Fees significantly higher than the GHS 720 per Twenty-foot Equivalent Unit (TEU). The Ghana Shippers’ Authority (GSA) approved this GHS 720 cap in May, following extensive consultations with stakeholders. The primary goal of this directive was to reduce the cost of doing business for importers.

    This situation fits into a broader narrative of regulatory enforcement challenges and the high cost of doing business in Ghana. Businesses frequently face hurdles that inflate operational expenses, which can ultimately affect consumer prices. The GSA’s directive aimed to alleviate some of these pressures, particularly for essential goods like frozen foods.

    The Ship Owners and Agents Association of Ghana, along along with 17 other entities, challenged the GSA directive in court. However, on July 10, the High Court dismissed their application for an injunction. The court ruled that the GSA directive was valid, operational, and fully enforceable. This legal backing strengthens the position of the importers and the regulator.

    EFFAG stated that the continued overcharging is no longer a mere commercial disagreement. It represents a direct and calculated act of disrespect against a lawful regulatory directive and a court of competent jurisdiction. The association, whose members import time-sensitive frozen foods, warned that these excess charges, combined with demurrage fees, threaten the viability of their businesses. This pressure will ultimately drive up food prices for Ghanaian consumers.

    Michael Obiri-Adjiei, representing EFFAG, urged every trader to remit strictly no more than GHS 720 per TEU. He also called on freight forwarders to honor the cap. Traders were advised to retain invoices to pursue refunds for any excess amounts paid. This proactive measure aims to empower individual importers to seek redress.

    EFFAG has outlined four key demands to resolve the ongoing dispute. First, they demand immediate compliance by all shipping lines with the GHS 720 fee cap. Second, they seek full refunds for all affected importers who have been overcharged. Third, the association calls for firm sanctions against defaulting lines, including their public identification by the GSA. Finally, EFFAG requests public backing from the Ministry of Transport to ensure the directive's enforcement.

    The group warned of escalating actions if decisive enforcement is not taken. These actions include industrial action, a coordinated boycott of non-compliant shipping lines, and mass public mobilization. They also indicated a readiness to pursue further legal action. The statement, signed by EFFAG and Michael Obiri-Adjiei, emphasized that the High Court has spoken and the law is clear, and they intend to enforce it. This standoff could significantly impact the supply chain for frozen foods and consumer prices in the coming weeks.

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