The Vice President of the Ship Owners and Agents Association, Adam Imoru Ayarna, has clarified the basis for exchange rate calculations used by shipping lines at Ghana’s ports, amid growing concerns from importers over inconsistencies in demurrage and other port-related charges.
His comments come in response to claims by the Chamber of Freight and Trade that private port operators, particularly shipping lines, use varying exchange rates rather than adhering to rates set by the Bank of Ghana (BoG).
Speaking on the Citi Breakfast Show on May 21, the Chamber’s President, Dennis Amfo Sefa, stated: “The shipping lines are not under any obligation to use the Bank of Ghana (BoG) rate. Some use interbank rates from their own banks. Others lock in a rate and review it monthly. This lack of uniformity creates serious challenges for importers.”
Responding on Thursday, May 23, Imoru Ayarna explained that shipping lines apply exchange rates based on the rate prevailing at the port of origin at the time a vessel departs for Ghana.
According to him, this principle applies regardless of currency fluctuations upon arrival in Ghana.
“When the vessel leaves the port of origin and it is coming directly to Ghana, the prevailing rate of origin is what has been used to calculate the cost buildup and everything on that voyage. For instance, if they leave and at the time it is GHc16 to US$1, and that is what they used to calculate their cost structure when they come to Ghana and the exchange rate drops, it is the principal that controls this.”
“This exchange rate formula is not only for Ghana, but it cuts across all the countries that they play. So, when they come to Ghana, and it is even Ghc12 to US$1, they cannot touch that very exchange rate.
The reverse is also the case; if at the time they come and the rate is Ghc1 to US$1, and they arrive at Ghana and the rate is Ghc12 to US$1, on that voyage also, they cannot touch. And it is because they have spent the money already,” he stated.
