The basic cocoa freight rate for containerised shipments and mega bulk shipments to all destinations except the United Kingdom (UK) has increased by 5% and 10% for the 2022/2023 cocoa season.
In addition, Bunker (Fuel) Adjustment Factor (BAF) to all destinations except the UK has also increased by two percentage points from 28 to 30 per cent.
The Cocoa Marketing Company (CMC), Ghana Shippers Authority (GSA) and 18 shipping lines agreed to increase the rates at this year’s Cocoa Freight Negotiation Conference at the Hilton Sorrento Palace, Sorrento, Italy last Thursday.
The reason behind the decision predominantly were events in the global shipping market, which include increasing charter rates, container shortage and rising bunker prices.
Also, the need to keep a competitive freight rate for Ghana’s cocoa, especially in the light of competition from neighbouring countries, played a role.
The increment in rate stipulates that calculated per tonne, for shipping a commodity to the various locations across the world currently stands at £31.50 to the United Kingdom (UK) for both bagged and bulk; to the Northern Continent €54.02 for bagged and €56.60 for bulk; to Estonia €61.74 for bagged and €64.70 for bulk; to Mediterranean Europe €60.64 for bagged and €63.53 for bulk; to the Far East US$100.44/106.09 for bagged and to Brazil US$116.24 for bagged and US$121.78 for bulk.
Managing Director of the Cocoa Marketing Company (CMC), Vincent Okyere Akomeah, noted that the agreed rates would be a win-win for the government and the shipping lines.
He said the move would help to save the government substantial revenue as the shipping lines would get good and reliable businesses.
Shipping lines that were present at the meeting to negotiate costs include Maersk Line, Mediterranean Shipping Company, ZIM Integrated Shipping Services Ltd, Grimaldi, COSCO Shipping Lines, Messina Lines, Ocean Network, CMA-CGM, and Arkas.
Richard Aniagyei, ISD