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Home Business

Cement price hike looms as COCMAG introduces temporary GH¢12 surcharge

The Chamber of Cement Manufacturers, Ghana (COCMAG) has introduced a temporary GH¢12.00 per bag clinker demurrage surcharge.

Kumasi Mail by Kumasi Mail
September 4, 2026
in Business
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Cement price hike looms as COCMAG introduces temporary GH¢12 surcharge
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The Chamber of Cement Manufacturers, Ghana (COCMAG) has introduced a temporary GH¢12.00 per bag clinker demurrage surcharge.

It comes amid severe congestion at the Tema Port and rising operational costs in the cement manufacturing industry.

The Chamber, in a statement said the surcharge, which comprises GH¢10.00 before tax and GH¢2.00 in applicable taxes and levies, was necessary to cushion manufacturers against extraordinary demurrage costs arising from prolonged vessel waiting times at the port.

The decision was reached at an emergency meeting held on Friday, August 28, 2026, Dr George Dawson-Ahmoah, Chairman of COCMAG, said.

The development, he said, comes as “cement manufacturers grapple with unprecedented delays in the discharge of clinker vessels and escalating demurrage charges.”

COCMAG said vessel waiting times at the Tema Port had increased sharply from an average of seven days in January 2026 to between 30 and more than 40 days in August 2026.

The development, it said, had resulted in estimated industry-wide demurrage costs of between US$45 million and US$50 million during the first eight months of the year.

Individual vessels were also reportedly incurring demurrage charges ranging from US$800,000 to US$1 million, placing additional financial pressure on cement manufacturers and threatening the stability of clinker supplies.

The Chamber stressed that the GH¢12 surcharge should not be interpreted as a general increase in cement prices, explaining that it was a temporary intervention designed specifically to offset the exceptional costs generated by the port congestion.

It said the surcharge would remain in effect until December 31, 2026, subject to monthly monitoring of the situation.

A formal review of the measure is scheduled for January 2027, when COCMAG will assess developments at the port and determine whether the surcharge should be adjusted or removed.

COCMAG said the current logistical challenges had been compounded by limited berth availability for clinker discharge.

According to the Chamber, only three main berths are currently available for clinker discharge at the Tema Port, while Berths 10 and 11 remain inaccessible to cement importers and manufacturers.

The restricted access, it said, had contributed significantly to the prolonged waiting times for vessels carrying clinker, a key raw material used in cement production.

COCMAG leadership, led by Chairman Frederic Albrecht and Chief Executive Officer Bishop Dr. George Dawson-Ahmoah, expressed concern about the broader implications of the congestion for the cement industry and the construction sector.

They warned that if the situation persisted, shipment cycles could stretch to nearly three months, potentially disrupting the regular supply of cement to the Ghanaian market.

Such a development, the Chamber cautioned, could have implications for construction activities across the country, particularly if manufacturers were unable to secure regular and timely deliveries of clinker.

In response to the situation, COCMAG said it was engaging the Government of Ghana and the Ghana Ports and Harbours Authority (GPHA) on urgent measures to address the congestion.

The proposed interventions include reducing vessel waiting times, improving berth capacity and restoring access to Berths 10 and 11 for clinker vessels.

The Chamber said addressing the underlying port constraints remained critical to preventing the continued accumulation of demurrage costs and protecting the stability of clinker supplies.

It reiterated that the surcharge was strictly temporary and would be reviewed as conditions at the Tema Port improved.

COCMAG said its preferred outcome was to see congestion reduced to normal levels, allowing the industry to eliminate the additional demurrage costs and, consequently, remove the surcharge.

The Chamber reaffirmed its commitment to working with relevant government and port authorities to ensure stability in the cement industry and minimise the impact of the port challenges on manufacturers, consumers and Ghana’s wider construction sector.

Source: GNA

Tags: Cement price hikeCOCMAGtopstory
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