Maritime trade flows, which witnessed a significant annual drop in the second quarter of the year, will likely pick up in the third and last quarters as relative stability returns to the foreign exchange market and economic uncertainty reduces, the Ghana Shippers’ Authority has said.
The volume of maritime exports and imports decreased by 21 percent year-on-year during the second quarter of the year: from 6 million tonnes in 2013 to 4.8 million tonnes for the same period this year.
Import tonnage fell by 31 percent, mainly blamed on the weak currency raising the cost of imports. Exports, too, went down by 16 percent as economic activity slowed.
There were also significant reductions in transit cargo headed to Ghana’s landlocked neighbours.
“We feel strongly that the economic challenges had an impact on the downturn in the second quarter. The Bank of Ghana’s directive on forex transactions also formed a major part of the problem,” said Dr. Kofi Mbiah, CEO of the Shippers’ Authority, in an interview with the B&FT during the tenth maritime law seminar for superior court judges in Accra.
New regulations governing foreign exchange transactions caused a lot of anxiety among shippers in the first half of the year, and the uncertainty it created — coupled with falling economic growth — is believed to have slowed down their activities.
The central bank has subsequently cancelled most of the controversial regulations, and Dr. Mbiah said the slowdown will probably be reversed in the third and fourth quarters, especially as the cedi — which depreciated against the dollar by 30 percent between January-June — is now regaining strength.
“We anticipate a turnaround in the third and fourth quarters; there will be significant improvement around that period as we continue to experience the recent positive economic indicators that have come about, especially as a result of the reversal of the forex directives,” he said.
The seminar for the judges is an annual event organised by the Authority to update members of the judiciary on maritime law developments and the special character of maritime disputes.
“It is also aimed at strengthening the nexus between maritime commercial interests and the judiciary, while exploring avenues for exposing the peculiarities of practicing maritime law in the country,” said Dr. Mbiah.
“We are happy with the outcomes of these seminars ten years after inception, as the judges have confirmed that they have helped them in their understanding of maritime crime issues. We believe that it has been institutionised in the interest of smooth adjudication of maritime crimes,” he added.
Marietta Brew Appiah Oppong, Minister for Justice and Attorney-General, commended the Shippers’ Authority for institutionising a unique platform for capacity building and thoughtful deliberation on developments in the maritime scene.
She said the judiciary is a critical factor in the resolution of maritime disputes, and the seminar provides the basis for continual development of the law in that area in the interest of competent jurisprudence on maritime matters.
