‘Bottlenecks’ In Maritime Sector…Lawmakers Order Probe

The-House-of-Representatives-Committee-on-Maritime-Affairs

The House of Representatives Committee on Maritime Affairs has issued a directive for the Customs Brokers Association of Liberia to compile a comprehensive report on the constraints and challenges faced by importers and stakeholders at Liberia’s ports, including the Freeport of Monrovia. According to a press release, this move follows ongoing concerns over regulatory oversight, fee structures, and transparency within the maritime sector.

During a committee hearing on Wednesday, the Vice President of the Customs Brokers Association of Liberia, Innis Zogar, provided a detailed account of systemic issues plaguing the industry. He highlighted the lack of clear regulation over shipping lines and CTN, arbitrary fee increases, and the absence of prior notification for policy changes.

“Nobody can tell you why shipping fees increase from $50 to $1500 overnight; nobody monitors or justifies these charges,” Zogar told the committee.

He emphasized that stakeholders are often caught unprepared, with no prior warning or transparency, unlike international practices where policy changes are announced well in advance. Zogar also addressed the ongoing problem of the “Container Deposit,” a security fee paid by importers for containers that is often not refunded.

Despite a proposal by the association to establish a guarantee system and develop a software platform to manage funds, shipping lines and GTMS have refused to cooperate, leading to persistent challenges.  He noted that the fees for delivery and detention have surged over the years, with some vessels paying millions in demurrage, yet without regulatory oversight or tax accountability.

The Vice President of the Customs Brokers Association further pointed out the absence of a regulatory authority overseeing shipping charges, which has resulted in inconsistent and unstandardized fees. “Shipping lines just increase their fees arbitrarily. There is no standardization or regulation,” he said the lack of transparency hampers the growth of Liberia’s maritime trade.

In light of these issues, the committee’s motion, seconded by several members, calls for a detailed investigation into the sector’s operations, including a review of the challenges faced at ports and the impact on national trade. The committee also thanked invited stakeholders for their participation and announced that a formal report would be shared with relevant authorities for further action.

Leave a Reply

Your email address will not be published. Required fields are marked *