New Shippers’ Authority to address unfair charges, improve regulation

The Shippers’ Authority (GSA) Bill, 2024 has been passed into law, promising to tackle long-standing issues of unfair charges, lack of transparency, and ineffective regulation within Ghana’s blue economy.
This new legislation repeals and replaces the 50-year-old Ghana Shippers’ Authority Act of 1974 (NRCD 254), addressing gaps in the old law and existing Legislative Instruments (L.I) while ensuring alignment with global best practices.

Key objectives and benefits
The primary aim of the new law is to address unfair and excessive charges burdening traders using Ghana’s sea and air ports, as well as land borders for international trade.
The Bill was presented by the Ministry of Transport in response to concerns over the country’s international transit trade, the absence of a comprehensive legal framework, and the need to protect shippers from exploitation by multinational shipping service providers.

Regulation and fair pricing
The new law is expected to ensure effective regulation of the shipping and logistics sector, guaranteeing fair pricing and charges for all stakeholders.
It empowers the GSA to control fees at ports and borders and promotes the participation of local firms in the sector.
Additionally, the legislation aims to enhance transparency and accountability, driving improved revenue generation and collection for national socio-economic growth.

Enhanced transparency and accountability
Kwasi Baffour Sarpong, CEO of the GSA, welcomed the passage of the Bill, highlighting that the new law introduces transparency in the determination of port fees and charges, ensuring accountability in international trade cargo movement.
“The new law will now empower the Ghana Shippers’ Authority to better adapt to emerging trends and complexities within the shipping and logistics industry, protect the interests of shippers and service providers, and improve its regulatory oversight of commercial shipping in the entire industry,” he noted.
The law is also expected to enable more effective regulation of transit trade, balancing the interests of shippers and service providers for enhanced efficiency and competitiveness in international trade.

Background and justification
The Ghana Shippers’ Authority was established in 1974 to organize shippers and equip them with bargaining power. However, the Act had not undergone significant reviews in 50 years, rendering it unresponsive to industry transformations.
The GSA has been leading transit trade development since 1987, but a legal framework to regulate transit trade and maximize benefits for Ghana was nonexistent until now.
The Ministry of Transport has pointed out that exorbitant charges by service providers hinder business growth and contribute to price hikes.
The lack of legislation empowering the GSA to regulate port charges has exacerbated this issue.
The Ministry emphasizes the necessity of amending existing legislation to enhance the GSA’s mandate and capacity to regulate and standardize shipping charges, ensuring a more equitable and efficient trading environment for all stakeholders.