Fuel delivery delays cost Ghana $60m in demurrage – CUTS Int’l

West African Regional Director of CUTS International, Appiah Adomako Kusi, has called for urgent measures to address inefficiencies in Ghana’s logistics system, saying delays at the country’s ports are imposing significant costs on businesses.

Speaking on the Citi Breakfast Show on Tuesday, September 22, he said about $60 million was paid in demurrage to shipping lines last year due to delays in discharging finished fuel products at the ports.

According to Mr Adomako Kusi, the delays often leave tankers and Bulk Distribution Companies (BDCs) incurring additional charges while they wait for vessels to discharge their cargo.

“Last year close to about $60 million was paid as demurrage to shipping lines because of the delays it takes for these shipping vessels to be able to unload the finished products into the country.”

He said the challenges extend beyond petroleum products, citing delays associated with clinker imports and complaints from freight forwarders over cargo clearance at the airport.

Mr Adomako Kusi also identified the high cost of domestic air transport as another concern within Ghana’s logistics chain, arguing that the issues point to the need for a broader review of how goods and services are moved across the country.

He urged policymakers to approach logistics as an efficiency and engineering challenge to improve the movement of goods and services at lower cost.

He said improving the logistics system could reduce unnecessary expenditure and enhance efficiency, while failure to address existing gaps would continue to increase costs without commensurate benefits.