Freight rates for cocoa shipment up by 5%

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Considering the global freight situation and the general increase in prices and costs, the players in the cocoa sector in Ghana have agreed on an increase in maritime transport tariffs.

The shipping lines agree on a 5% increment across the board on the previous freight rate for the next cocoa season, starting on the 1 st of October. The 2021/2022 Cocoa Negotiation Conference held in Accra on September 10,  brought together the Cocoa Marketing Company (CMC), the Ghana Shippers Association (GSA), and the 26 shipping companies that usually charter cocoa and its products.

As a result, the rate for the shipment per tonne to the United Kingdom (UK) has gone up from £30 to £31.50, the Northern Continent increased from €49 to €51.45 and Estonia jumped from €56 to €57.75. Shipments to Mediterranean Europe increased from €55 to €58.80, the Far East rose from $89/94 to $94.19/99.48, and Brazil went up from $103 to $109.

The bunker adjustment factor (BAF), an additional charge levied on the shippers to compensate for fluctuations in the price of the ship’s fuel, was also increased by one percent that is from 27 percent to 28 percent for all destinations but for the Far East and Brazil which had already been added to the freight rate.

Speaking at the 2021/2022 Cocoa Negotiation Conference in Accra, the Chief Executive Officer (CEO) of Ghana Shippers Authority, Benonita Bismarck said the adjustment became necessary due to recent events in the global shipping market leading to an increase in charter rates, container shortage, and rising bunker prices.

“After very lengthy discussions with the 26 shipping lines which participated in this year’s cocoa freight negotiations and upon consideration of the following issues raised relating predominately to current events in the global shipping market – increasing charter rate, container shortage, rising bunker prices. With the need to keep a competitive freight rate for Ghana’s cocoa, especially in the light of competition from neighboring countries, some conclusions have been reached. Based on the foregoing, the freight rate for the shipment of cocoa beans from Ghana for the 2021-2022 cocoa season has been concluded as follows: Basic freight – 5 percent increase, bunker adjustment factor (BAF) – 1 percent increase,” she said.

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