CUTS International, Accra, has condemned moves by cement manufacturers to pass an estimated US$45 million to US$50 million in demurrage costs on to consumers through a uniform GH¢12-per-bag surcharge, warning that the arrangement could hurt consumers and raise serious cartel concerns.

The public policy think tank said while cement manufacturers had a legitimate right to recover genuine costs incurred as a result of congestion at the Tema Port, consumers should not be made to bear the burden through a charge collectively determined by competing companies.

CUTS said the decision by the Chamber of Cement Manufacturers, Ghana (COCMAG) to introduce a common clinker demurrage surcharge raised significant competition and antitrust concerns, particularly because competing firms had different cost structures and exposure to port-related delays.

COCMAG has attributed the surcharge to a dramatic increase in vessel waiting times at Tema Port, from an average of seven days in January to between 30 and more than 40 days in August 2026.

The prolonged delays, according to the chamber, resulted in estimated industry-wide demurrage costs of between US$45 million and US$50 million during the first eight months of the year.

CUTS, however, argued that the existence of genuine additional costs did not justify competing cement manufacturers collectively determining a common amount to be paid by consumers.

“Cement manufacturers have every right to recover legitimate demurrage costs. What raises a red flag is when firms that are supposed to compete meet and collectively determine a common surcharge to be paid by consumers,” said Appiah Kusi Adomako, Director of the West Africa Regional Centre of CUTS International.

“When competitors agree on an element of price rather than determine it independently, such conduct bears the classic hallmarks of cartel behaviour,” he added.

US$50m burden on consumers

According to COCMAG, the GH¢12 surcharge comprises GH¢10 before tax and GH¢2 in taxes and levies.

The decision was reportedly reached at an emergency meeting on August 28, 2026, and is expected to remain in effect until December 31, subject to monthly monitoring and a review in January 2027.

CUTS said the terminology used to describe the charge did not change its economic impact on consumers.

Whether labelled a “demurrage surcharge” or a price increase, it ultimately forms part of the amount paid by consumers for cement and could feed into construction costs across the economy.

The think tank said manufacturers should independently assess the extent to which they had actually been affected by demurrage and determine how much of those costs, if any, should be passed on to customers.

It pointed out that cement companies operate under different shipping contracts and have different clinker volumes, vessel arrangements, inventory levels, financing costs, operational efficiencies and exposure to demurrage.

Consequently, CUTS questioned the economic basis for every manufacturer imposing exactly the same GH¢12 charge.

“One manufacturer might need GH¢12 to recover its costs. Another might require GH¢8. A more efficient manufacturer might absorb part of the additional cost to retain customers or gain market share,” Mr Adomako said.

“That is competition at work.”

He said allowing individual companies to respond differently to the port-related cost pressures would enable market forces to determine how much of the additional cost was passed on to consumers.

Common problem, not common price

CUTS said a common industry challenge should not automatically result in a common industry price.

It cited the airline industry as an example of how companies facing similar cost pressures could independently determine their responses.

Fuel is a major operating cost for airlines, and carriers may introduce fuel surcharges when fuel prices rise. However, individual airlines determine their own charges based on their respective operating costs and commercial strategies.

Fare information reviewed by CUTS for the Accra-Kumasi route for September 15, 2026, showed Africa World Airlines applying a fuel surcharge of GH¢220, compared with GH¢75 by PassionAir.

CUTS said the variation reflected differences in the airlines’ aircraft, fuel consumption, operating costs, fleet economics and commercial strategies.

Africa World Airlines operates jet aircraft, while PassionAir operates turboprop aircraft, meaning the two carriers do not necessarily incur identical fuel costs.

“The principle is simple. Airlines face the same broad fuel-cost pressure, yet independently determine their respective surcharges,” CUTS said.

It warned that if competing airlines were to meet and agree that all passengers should pay an identical fuel surcharge, the arrangement would raise serious cartel concerns.

“The same competition principle applies to cement. A common industry problem does not require a common industry price,” the organisation said.

COCMAG urged to clarify decision

CUTS acknowledged COCMAG’s legitimate role in representing cement manufacturers and engaging the Government, the Ghana Ports and Harbours Authority (GPHA) and other stakeholders on issues including port congestion, berth availability and vessel delays.

However, it said there must be a clear boundary between legitimate collective advocacy and the coordination of commercial decisions that should be taken independently by competing firms.

The think tank has therefore called on COCMAG to clarify whether the GH¢12 surcharge constitutes a collective decision or merely a recommendation to its members.

It also wants the chamber to state clearly whether individual manufacturers remain free to charge GH¢12, impose a lower or higher amount, or absorb the additional costs without introducing a surcharge.

CUTS further cautioned against the monthly monitoring and January review becoming a platform for competing manufacturers to exchange commercially sensitive information.

Such information, it said, could include future prices, production volumes, individual companies’ costs and clinker stock levels.

Fix Tema congestion

While condemning the proposed transfer of the demurrage burden to consumers, CUTS also called for urgent action to address the underlying problem at Tema Port.

It urged the Government and GPHA to resolve the operational constraints responsible for prolonged vessel waiting times and the accumulation of demurrage costs.

The think tank said excessive and avoidable port delays ultimately increase business costs, construction expenses and the prices consumers pay.

“COCMAG should collectively fight the demurrage problem. Individual manufacturers should independently decide what they charge consumers. Businesses must recover their costs and make profits, but competitors must compete, not coordinate prices,” Mr Adomako said.

CUTS stressed that resolving congestion at the port should not come at the expense of competition in the cement market.

Call for competition law

The organisation also renewed calls for Ghana to pass comprehensive Competition and Fair-Trade Practices legislation and establish an effective national competition authority.

It said the absence of a comprehensive domestic competition law made developments such as the uniform cement surcharge particularly concerning.

CUTS clarified that it was not making a final determination that the cement manufacturers had engaged in cartel conduct, noting that such a determination would require an examination of what was discussed and agreed at the August 28 meeting and how the surcharge was implemented.

However, it maintained that a collective agreement among competitors on a uniform component of the price consumers must pay constituted a serious cartel red flag that warranted scrutiny.

The think tank reiterated that businesses have different cost structures and that a competitive market should allow those differences to translate into different commercial decisions.

It warned that consumers ultimately stand to lose when competitors replace independent pricing decisions with collective arrangements, particularly when the result is the transfer of tens of millions of dollars in industry costs to the final consumer.