The Cocoa Marketing Company (CMC), the Ghana Shippers’ Authority (GSA), and 17 shipping lines have agreed to an average of 5% increase in the basic freight rate for the 2024/2025 cocoa season. However, the Bunker (Fuel) Adjustment Factor (BAF) remains the same as last year.
The new rates, based on last year’s negotiations, will come into effect on 1st October 2024.
In a news statement copied to The High Street Journal the CMC said the agreement provided stability for Ghana’s cocoa export sector, which was crucial to the nation’s economy. The statement said shipping rates for cocoa per tonne to various global destinations for the 2024/2025 season were €56.72 to Northern Europe, €64.83 to Estonia, €63.67 to Mediterranean Europe, between US$105.46 and US$111.39 to the Far East, and US$122.05 to Brazil.
It said the primary factors influencing the increment were global market conditions impacting shipping and logistics worldwide. It also said maintaining competitive freight rates for Ghana’s cocoa, particularly in light of increasing competition from neighbouring countries, is also a key consideration for the increment.
Some of the shipping lines involved in the negotiations included Arkas Line, Maersk Line, Mediterranean Shipping Company, Gold Star, ZIM Shipping Lines, Grimaldi, Messina Lines, Pacific International Line (PIL), UNICARGO, Breadbox Shipping Lines, and Orient Overseas Container Line (OOCL).
The Cocoa Freight Negotiation is an essential annual event that brings together key stakeholders in Ghana’s cocoa export sector. The primary aim of these negotiations is to agree on freight rates for the upcoming cocoa season. The rates are critical as they influence the cost of transporting cocoa beans from Ghana globally.
Chief Executive Officer, GSA, Mr. Kwesi Baffour Sarpong, expressed gratitude to the shipping lines for their ongoing partnership with Ghana. He commended them for their vital role in facilitating international trade, acting as trusted intermediaries between the Cocoa Marketing Company and global buyers.
Mr Sarpong noted that, despite the Western Region being the primary source of the nation’s cocoa, many shipping lines had been reluctant to call at the Takoradi Port to transport the commodity. However, with YilPort’s recent commencement of operations at the Takoradi Port, he is optimistic that the situation would improve.
“With YilPort’s entry, which brings advanced technology, efficient handling systems, and international expertise, the cocoa export process will become more streamlined and quicker,” he added.
He said the improved port infrastructure and services provided by YilPort are expected to reduce delays, minimize costs, and ensure that cocoa shipments reach their global destinations in optimal condition. This development will not only bolster Ghana’s cocoa trade but also reinforce the country’s reputation as a reliable exporter on the global stage.
