By: Naa Dzagbley Ago
The Cocoa Marketing Company (CMC), Ghana Shippers Authority (GSA), and 18 shipping lines have agreed to increase basic freight rates for the 2022/2023 cocoa season to all destinations but the United Kingdom (UK).
As a result, basic freight for containerised shipments to all destinations except the UK has been increased by 5 percent and basic freight for mega-bulk shipments to all destinations except UK has been increased by 10 percent.
In addition, Bunker (Fuel) Adjustment Factor (BAF) to all destinations except UK has been increased by 2 percentage points from 28 to 30 percent.
These were reached after a marathon meeting at this year’s Cocoa Freight Negotiation Conference held at the Hilton Sorrento Palace, Sorrento, Italy.
Chief Executive Officer of the Ghana Shippers Authority, Benonita Bismarck, who was at the meeting, said, “This means the rate, calculated per tonne, for shipping the commodity to the various locations across the world currently stands at £31.50 to the UK for both bagged and bulk; to the Northern Continent €54.02 for bagged and €56.60 for bulk; to Estonia €61.74 for bagged and €64.70 for bulk; to Mediterranean Europe €60.64 for bagged and €63.53 for bulk; to the Far East US$100.44/106.09 for bagged and to Brazil US$116.24 for bagged and US$121.78 for bulk.”
She said the reasons that resulted in the decision are predominantly as a result of events in the global shipping market, which include increasing charter rates, container shortages, and rising bunker prices. Also, the consideration of the need to keep a competitive freight rate for Ghana’s cocoa, especially in the light of competition from neighbouring countries, played a role.
Madam Benonita Bismarck, used the occasion to acknowledge the cooperation and support of the shipping lines who have kept faith with the nation by promoting trade and serving as trusted conduits between the Cocoa Marketing Company and the buyers for the international transportation of Ghana’s cocoa.
Managing Director of the Cocoa Marketing Company (CMC), Vincent Okyere Akomeah, expressed confidence that the agreed rates would be a win-win for government and the shipping lines. He said the move would help government to save substantial revenue as the shipping lines would get good and reliable business. He was optimistic about a good cocoa year with the help of key stakeholders such as the GSA, the shipping lines, buyers, and insurers.
Some of the shipping lines who were present at the conference to agree on prices include Maersk Line, Mediterranean Shipping Company, ZIM Integrated Shipping Services Ltd, Grimaldi, COSCO Shipping Lines, Messina Lines, Ocean Network, CMA-CGM and Arkas.
