Tema Port congestion threatens fresh increase in cement prices over $4.5m demurrage bill

A growing backlog of clinker vessels at the Tema Port is raising concerns about a possible increase in cement prices as manufacturers incur millions of dollars in demurrage and other port-related costs.

Six vessels carrying an estimated 236,000 metric tonnes of clinker are currently anchored off Tema, with some having waited more than a month to berth and discharge their cargo.

The accumulated demurrage on the vessels is estimated at between US$3.67 million and US$4.51 million, with the bill rising by more than US$20,000 each day the ships remain at anchorage.

The situation has heightened concerns within the cement manufacturing industry, where there are fears that the mounting costs could eventually be transferred to consumers through higher cement prices.

The six vessels have been waiting between 17 and 33 days to berth. MV JIN HONG and MV BULK ST LUCIA have each spent 33 days at anchorage, while MV DUBAI EARTH has waited 29 days.

MV JI HONG has been waiting for 28 days, MV ADRE for 27 days and MV PEPPINO for 17 days.

Estimated demurrage on the individual vessels ranges from US$374,000 to US$891,000.

The congestion could worsen, with 4 additional clinker vessels reportedly heading to Ghana without confirmed berthing dates.

Dispute over cause of delays

The Ghana Ports and Harbours Authority (GPHA) has attributed part of the congestion to what it describes as slow discharge by cement manufacturers.

However, figures contained in an industry briefing suggest that the increase in waiting time before vessels berth has been considerably higher than the increase in the time required to discharge cargo once vessels are at berth.

Between January and August 2026, average discharge time at berth increased by 2.3 days, while the average waiting period before berthing rose by 26.5 days.

The briefing therefore estimates that of the approximately 29 additional days vessels spend within the Tema Port system, about 3 days are linked to discharge by manufacturers, while approximately 26 days are associated with waiting to berth.

The figures have prompted renewed calls for measures to address berthing constraints at the port.

Industry calls for fourth berth

The availability of berths for clinker discharge has emerged as a major concern for cement manufacturers.

Following a meeting involving the Cement and Other Construction Materials Manufacturers’ Association of Ghana (COCMAG), the Minister of Trade, Industry and Agribusiness and the Minister of Transport, the GPHA committed to making a fourth berth available within one week.

However, as of September 14, the fourth berth had not been activated, with only 3 berths reportedly available for clinker discharge at the Tema Port.

With 6 vessels already waiting and 4 more expected, industry players fear the congestion could intensify if additional berthing capacity is not provided.

The financial implications are also becoming a major concern. Each additional day spent at anchorage results in demurrage payments to foreign vessel owners, with the combined cost currently increasing by more than US$20,000 daily.

Industry players argue that the payments do not generate corresponding economic value for Ghana because the cargo remains undischarged and cannot be used for cement production while the vessels are waiting.

The prolonged delays could ultimately affect manufacturers’ production costs, particularly because clinker is a key raw material in cement manufacturing.

If the additional demurrage and port-related expenses continue to accumulate, manufacturers could face increased production costs, potentially creating pressure for higher cement prices.

Any increase in the cost of cement could have wider implications for the construction sector, affecting the cost of houses, roads, commercial developments and other infrastructure.

Households, contractors, property developers and government projects could consequently face additional financial pressure at a time when construction costs are already a concern.

The industry is therefore calling for urgent measures to address the congestion and prevent the rising port-related costs from developing into a wider cement pricing issue.

Among the concerns requiring attention are the activation of the promised fourth berth, measures to reduce vessel waiting times and the question of who should ultimately bear the rapidly accumulating demurrage costs.

With millions of dollars already being incurred and additional clinker vessels reportedly approaching Tema, industry concerns are growing over the potential consequences of further delays.