CUTS warns GH¢12 demurrage surcharge on cement, raises serious cartel concerns

CUTS International, a leading Ghanaian think tank, has expressed deep competition and antitrust concerns over the Chamber of Cement Manufacturers of Ghana's (COCMAG) new GH¢12 per bag clinker demurrage surcharge. According to CUTS, such collective determination of consumer surcharges among competing firms raises serious cartel conduct concerns.

While acknowledging the serious cost pressures facing cement manufacturers due to Tema Port congestion, CUTS argues that each company's unique cost structure and exposure to demurrage do not warrant an identical surcharge. The organization questions why companies with differing cost structures and demurrage exposure would all independently decide on the same GH¢12 surcharge.

The airline industry provides a useful comparison, where competing airlines independently determine fuel surcharges based on their individual fuel consumption, costs, and commercial strategies. CUTS stresses that a common industry problem does not inherently warrant a common industry price. While COCMAG has the right to advocate collectively with government and other institutions on port congestion issues, CUTS urges the organization to ensure that decisions on commercially sensitive matters like surcharges remain the domain of individual manufacturers.

CUTS calls on COCMAG to clarify whether the surcharge is a collective decision or recommendation, and whether each manufacturer retains the autonomy to set their own surcharge amount. The organization also urges the government and Ghana Ports and Harbours Authority to urgently address the operational constraints at Tema Port to prevent excessive demurrage costs from impacting businesses, construction costs, and consumers while preserving competition.