GUTA, others petition President not to sign new Shippers’ Act

The business community, led by the Ghana Union of Traders Association (GUTA), has appealed to President Nana Addo Dankwa Akufo-Addo not to assent to the Ghana Shippers Authority Act, 2024, until critical issues raised by stakeholders are resolved.

In a statement issued by GUTA and signed by its President, Dr. Joseph Obeng, concerns were expressed over the lack of consultation with the business community on key aspects of the Act, particularly the registration of shippers and shipping service providers.

Lack of stakeholder consultation on key provisions
Dr. Obeng pointed out that crucial matters such as the submission of shipment notices were not discussed with stakeholders, depriving them of the opportunity to provide input.
According to him, the final draft of the Act was only made available to stakeholders after Parliament had already approved the Bill, leaving no room for their concerns to be addressed.

Reintroduction of the controversial advance shipment information system
The GUTA president also highlighted the reintroduction of the Advance Shipment Information System, a measure previously resisted and withdrawn by the government.
He emphasized that the business community’s opposition to this system remains unchanged, arguing that the information sought by the Ghana Shippers Authority (GSA) under this provision is irrelevant to their operations.

Concerns over legislative instruments and legal conflicts
Dr. Obeng noted that while the GSA had initially agreed to address concerns through Legislative Instruments (LIs), further consultations revealed that LIs cannot override an Act of Parliament.
As a result, GUTA is calling on the President to withhold his assent until all issues are fully resolved.

Questions surrounding GSA’s Role in freight rate negotiations
In addition to GUTA’s concerns, other stakeholders have raised questions about Clause 3(1d) of the new law, which outlines the GSA’s role in representing shippers’ views on freight rates, shipping space availability, and port charges.
Stakeholders are uncertain whether the GSA will now be responsible for negotiating freight rates and cargo space on behalf of shippers, despite not being legally included in the contract of carriage.

Potential conflict of interest and discrimination in the Act
Critics have also pointed to a potential conflict of interest in Clause 3(1s), which tasks the GSA with resolving disputes in commercial dealings between shippers, service providers, and regulatory agencies.
This dual role as both facilitator and regulator is seen as compromising the GSA’s impartiality.
Moreover, Clause 37 has been flagged for discriminating against shipping lines, imposing a two percent levy on the gross freight value of shipments.
This levy applies exclusively to carriers, despite the GSA’s regulatory oversight extending to all industry stakeholders.

Concerns over legal overlaps and duplication of functions
The new Act also appears to create legal overlaps and duplication of functions, particularly in the registration of customs house agents and other key industry stakeholders.
These functions are already governed by existing laws, such as the Customs Act 2015 (Act 891) and L.I 2248.
Stakeholders question the necessity of additional registration requirements, arguing that they add unnecessary bureaucratic layers without offering clear benefits.

Call for broader consultation and collaborative approach
The business community has expressed frustration with the rushed manner in which the bill was passed, leading to the exclusion of many important stakeholders from the legislative process.
They argue that the universal language of trade is negotiation and that a more collaborative approach, involving all factions of the shipping industry, is needed to address the challenges facing the sector.