The New Ghana Shippers’ Authority Act
Understanding the New Ghana Shippers’ Authority Act: Key Changes and Implications
The maritime and shipping industry remains a cornerstone of Ghana’s economy, driving international trade and contributing significantly to national development. The passage of the Ghana Shippers’ Authority Act, 2024 (Act 1122), marks a significant reform in the regulatory framework governing the industry.
This article provides a detailed comparative analysis of the key changes introduced under the new Act, juxtaposing them with the now-repealed Ghana Shippers’ Authority Act, 1974 (N.R.C.D. 254). It also highlights essential updates businesses should be aware of – particularly regarding shipping operations, compliance requirements, and industry costs.
1. Strengthened Institutional Framework and Governance
One of the most notable changes in the new Act is the restructuring of the Ghana Shippers’ Authority (GSA). Under the previous law, N.R.C.D. 254, the GSA was responsible for a wide range of administrative functions but lacked a well-defined governance structure.
The new Act, Act 1122, improves this by officially establishing a board as a governing body of the GSA.¹ This change is aimed at strengthening leadership, improving oversight, and increasing accountability within the GSA.
2. Expanded Regulatory Oversight for Service Providers
Under the repealed N.R.C.D. 254, the GSA focused on primarily protecting the interests of shippers but had limited authority and control over service providers. The 2024 Act expands the GSA’s role to include the regulation of freight forwarders, air cargo handlers, terminal operators, and other logistics service providers.²
The new Act also introduces clearer definitions of key industry players, such as freight consolidators, ground cargo handling operators, and storage operators in international trade cargo. These definitions aim to ensure that all stakeholders within the shipping and logistics sector are recognised and adequately regulated, addressing the gaps and uncertainties that existed under the previous Act.
3. Mandatory Registration and Compliance for Industry Players
Under N.R.C.D. 254, registration processes were less structured, leading to inconsistencies in oversight. The new Act addresses this by introducing mandatory registration for shippers and shipping service providers with the GSA.³ It also sets out clear procedures for suspending or cancelling registrations in cases of non-compliance.
Companies are required to complete specific registration forms, including:
- Shipper Registration Form (Form One)
- Shipping Service Provider Registration Form (Form Two)
- Transit Shipper Registration Form (Form Four)
A shipment notification system is now required, aimed at improving cargo tracking and reducing fraudulent activities.⁴ Businesses must comply with stricter registration protocols. This provision aligns Ghana’s shipping practices with global best practices, fostering greater trust and transparency in international trade.
4. Introduction of a Levy System on Shipping Operations
A major financial reform introduced by the new Act is the establishment of a mandatory levy system.⁵ Unlike N.R.C.D. 254, which relied heavily on government’s financial support, the new system requires carriers operating in Ghana to pay levies.
This creates a dedicated revenue stream for the GSA, helping to strengthen its regulatory functions. While expected to improve service delivery, it also raises concerns about higher operating costs for shipping companies and logistics providers.
5. Strengthened Dispute Resolution
Another notable improvement is the introduction of a formal dispute resolution process.⁶ Unlike the previous legal framework, the 2024 Act establishes structured mechanisms for resolving disputes between shippers and service providers.
Complaints must be lodged within one (1) year, with investigations concluded in 30 days, and settlements within 14 days. This provides a reliable and timely legal avenue for dispute resolution, promoting fairness in commercial transactions.
6. Enforcement of Regulatory Compliance and Penalties
The new Act significantly enhances the GSA’s enforcement powers. Non-compliance with registration and levy requirements may result in fines and possible suspension of operations.
Businesses must ensure full compliance to avoid legal and financial penalties. Proactive adherence to compliance measures is essential for uninterrupted operations.
7. Unapproved Charges and Refunds
The new Act introduces strict oversight of shipping service provider fees.⁷ It prohibits any charges not vetted and sanctioned by the GSA. Unapproved fees are deemed unlawful, with penalties ranging from 100% to 300% of the amount charged.
Affected parties can seek refunds through the GSA, which has enforcement powers to ensure repayment. This reform promotes transparency and reduces the financial burden on businesses.
8. Transit Shipping Regulation
The Act strengthens oversight for transit shipping, where international cargo passes through Ghana.⁸ All such entities must register with the GSA to improve control and reduce smuggling.
Penalties for non-compliance are outlined, reinforcing accountability and alignment with international standards.
9. Transitional Provisions for a Smooth Implementation
To support smooth transition, the 2024 Act includes transitional provisions.⁹ Existing contracts and regulatory actions remain valid, and employees of the former GSA retain employment under similar terms.
Businesses should begin aligning with the new legal framework early to avoid last-minute compliance challenges.
10. Implications for Key Stakeholders
The changes introduced by the 2024 Act will have significant implications:
- Shippers: Enhanced compliance improves oversight but may increase operational costs.
- Carriers and Service Providers: New levies and regulations add responsibilities but foster predictability.
- Government and Regulators: Strengthened governance and financial autonomy enhance regulatory capacity.
Conclusion
The Ghana Shippers’ Authority Act, 2024, introduces a more structured and transparent regulatory environment for the shipping industry. While the reforms bring added responsibilities, they aim to enhance efficiency, strengthen protection, and streamline dispute resolution.
Businesses should take proactive steps to understand the law, register with the GSA, and align with updated compliance requirements. By doing so, they can navigate the evolving maritime landscape successfully.
References
- Section 4 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Section 3 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Sections 27 – 31 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Section 38 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Section 37 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Section 46 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Section 36 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Section 39 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)
- Section 55 of the Ghana Shippers’ Authority Act, 2024 (Act 1122)