The Cocoa Marketing Company (CMC), Ghana Shippers Authority (GSA) and 18 shipping companies have agreed to increase base freight rates for the 2022/2023 cocoa season to all destinations except the UK.
As a result, base freight for containerized shipments increased by 5% and base freight jumped by 10%.
Additionally, the Bunker (Fuel) Adjustment Factor (BAF) to all destinations except the UK has been increased by 2 percentage points from 28% to 30%.
These were achieved after a marathon meeting at this year’s Cocoa Freight Negotiation Conference held at the Hilton Sorrento Palace, Sorrento, Italy on September 20, 2022.
This means that the calculated rate per tonne, for shipping the goods to different locations around the world, is currently £31.50 to the United Kingdom (UK) for bags and bulk; to the Northern Continent €54.02 in bags and €56.60 in bulk; to Estonia €61.74 for bags and €64.70 for bulk; to Mediterranean Europe €60.64 in bags and €63.53 in bulk; to Far East US$100.44/106.09 for bags and to Brazil US$116.24 for bags and US$121.78 for bulk.
The reasons that led to this decision were mainly events in the global shipping market, including increasing charter rates, container shortages and rising bunker prices. In addition, consideration of the need to maintain a competitive freight rate for cocoa from Ghana, particularly in light of competition from neighboring countries, played a role.
The Director General of the Ghana Shippers Authority, Ms. Benonita Bismarck, on her part, took the opportunity to acknowledge the cooperation and support of the shipping companies who have kept faith with the nation by promoting trade and serving as conduits of trust between the Cocoa Marketing Company and buyers for the international transport of cocoa from Ghana.
The managing director of the Cocoa Marketing Company (CMC), Vincent Okyere Akomeah, was convinced that the agreed tariffs would benefit the government and the shipping companies.
He said the move would help the government save substantial revenue as shipping companies would get good and reliable business.
He was optimistic about a good cocoa year with the help of key players such as the GSA, shipping companies, buyers and insurers, among others.
Among the shipping lines present at the conference to agree on prices are Maersk Line, Mediterranean Shipping Company, ZIM Integrated Shipping Services Ltd, Grimaldi, COSCO Shipping Lines, Messina Lines, Ocean Network, CMA-CGM and Arkas.