The CEO of the Ghana Shippers’ Authority, Prof Ransford Gyampo, has warned that thousands of containers are lost at sea each year, leaving importers exposed to significant financial risks.

Delivering a speech at a sensitisation seminar on mandatory local insurance for imports at the Ghana Shippers’ House on Wednesday, April 8, he stressed the scale of risks confronting global trade.

“Approximately 80–90% of global trade by volume is transported by sea, with a significant proportion of this cargo carried in containers.

"In recent years, industry data indicates that an average of about 1,500 to 2,000 containers are lost at sea annually, although this figure can fluctuate significantly in years involving major maritime incidents,” he said.

He added that the dangers go beyond maritime accidents.

“When broader risks such as piracy, terrorism, conflict, and industrial actions are considered, it becomes evident that substantial risks exist—not only in maritime transport but across all modes of cargo movement,” he stated.

Prof. Gyampo said the most effective protection against such losses is proper insurance cover.

“Consequently, the most effective way to mitigate the financial impact of these risks is to secure shipments with appropriate cargo insurance, ensuring adequate protection against potential losses in transit,” he said.

He revealed that despite these risks, most imports into Ghana are not insured locally, raising concerns about exposure and lost economic value.

“Research has revealed that although the majority of import shipments into Ghana are transacted on Cost-Insurance-Freight (CIF) basis, only about 6% of imports are insured locally,” he noted.

He further warned that many importers are unaware of the details of their insurance cover.

“Furthermore, approximately 75% of importers have little or no knowledge of the insurance cover on their cargo and a limited awareness among shippers regarding their rights and obligations,” he said.

Prof. Gyampo also highlighted the disadvantages of relying on foreign insurance arrangements.

“Additionally, when import cargo insurance is arranged abroad, shippers are often disadvantaged in several ways, including: Limited control over premium rates; Lack of transparency in policy terms; Delays and higher costs associated with claims processing; and Cumbersome and often complex dispute resolution processes,” he said.

He contrasted this with the benefits of local insurance.

“By contrast, local underwriting offers improved regulatory oversight, easier access to insurers, faster claims settlement, greater transparency, and direct contribution to national economic development.

"Clearly, local cargo insurance better safeguards the interests of the trading community while delivering broader economic benefits to the country,” he added.

The GSA CEO urged stakeholders to embrace the policy on mandatory local cargo insurance, describing it as critical to protecting importers and strengthening Ghana’s economy.