SOAAG warns port congestion costs shipping lines $70,000 daily

The Ship Owners and Agents Association of Ghana (SOAAG) has sounded an alarm regarding severe congestion at the nation's ports, which is resulting in staggering financial losses for international shipping lines. According to Dr. Adam Imoru Ayarna, an Executive Member of SOAAG, the current bottleneck has left approximately 15 container vessels stranded offshore, unable to berth and discharge their cargo. This logjam is significantly disrupting the maritime supply chain and placing an immense financial burden on vessel operators who rely on timely turnaround cycles.

The financial implications of these delays are substantial, with each vessel incurring daily operational costs ranging between $50,000 and $70,000. With an average waiting period of seven days per ship, the cumulative losses for the 15 vessels currently waiting are reaching millions of dollars. These costs stem from a variety of factors, including fuel consumption for idling engines, crew wages, and the opportunity cost of vessels being unable to proceed to their next scheduled port of call. Dr. Ayarna highlighted that this situation is not only increasing operational expenses for the shipping lines but is also directly impacting the overall efficiency of cargo movement within the country.

This congestion poses a threat to Ghana's standing as a preferred maritime hub in the West African sub-region. If the delays persist, there are concerns that the increased costs incurred by shipping lines could eventually be passed down to importers and consumers, potentially leading to higher prices for goods. The report from SOAAG underscores the urgent need for port authorities and stakeholders to address the underlying causes of the congestion to ensure that the ports can operate at optimal capacity and support the country's trade objectives.