KDM Global Logistics – Setting the pace in Ghana's shipping and logistics industry

Globalisation has had an impact on the world economy which transcends industries. For the Shipping and logistics industry, the impact has largely been positive as it has created opportunities for buyers and sellers who are worlds apart to be able to transact business and have goods delivered to the buyer’s doorstep as a result.

Thanks to globalization, international trade and transport have become the backbone of the socio-economic development of many nations. It is for this reason that shipping logistics companies such as KDM Global Logistics have emerged. KDM Global’s main aim is to take up the responsibility of handling the logistics and supply chain needs of organizations requiring the services of a third-party logistics provider.

As a wholly-owned Ghanaian logistics company established by Dr Chaouki Fattal and Mr Abu Baba Musah, it received its Certificate of Incorporation and Certificate to Commence Business on 5th of November, 2019. In order to ensure strict compliance to the laws of the land, the company moved swiftly and was able to secure its Certificate of Registration as a Shipper from the Ghana Shippers’ Authority three (3) days later. It went on to obtain the required documents from the appropriate agencies and officially commenced business on 1st July 2020.

Coming up in the Covid-19 era

One of the most challenging, if not impossible things to achieve in recent times is to set up a business in the shipping and logistics industry at a time when the world economy is recovering from the COVID-19 pandemic. In the brief period from 2019 till date, the world has undergone the worse recession since the World War II with the global economy shrinking by about 5.2% in 2020, the same year KDM Global Logistics was established. As a result, shippers experienced what could best be described as near collapse of the shipping and logistics industry. This is because the volume of imports and exports needed to be processed in the year 2020 and 2021 respectively reduced drastically leading to many job losses. KDM Global Logistics defied these challenges and begun operations in the middle of the pandemic and has survived despite the challenges. The situation, according to KDM Global Logistics has improved as the world moves into the post-pandemic era.

Track Record

KDM Global Logistics Limited has provided warehousing and ex-warehousing services for about a dozen companies for a couple of years. They include a number of reputable organizations, such as, the Ridge Medical Centre, the Korle Bu Teaching Hospital, the Komfo Anokye Teaching Hospital and the Ridge Medical Centre, the Korle Bu Teaching Hospital, the Komfo Anokye Teaching Hospital among others. The company has the capacity to clear about 15 shipping containers and transport them to their respective destinations daily.

KDM Global Logistics Limited provides shipping and clearing services consolidation and deconsolidation, cargo clearing and forwarding and cargo transit services. The company’s objective is to make customers’ supply chain more efficient by offering integrated and customized logistics solutions with the help of world class technology and optimization of resources.

Contribution to economy

As a third-party logistics provider, KDM Global Logistics assists various organizations, in terms of satisfying its tax obligations to ensure effective and sustained operations. The company is able to meet all its tax obligations as well as ensuring the payment of customs duties and taxes. KDM is hopeful to increase and expand its operations to enable it double the tax paid to government in the next couple of years. The company currently offers five (5) direct jobs and fifty (50) indirect jobs annually.

Demurrage – the issue of concern

The payment of demurrage and its accompanying challenges is at the top of the list of issues of concern to KDM Global Logistics. As explained by Mr. Abban, only a few of the shipping lines do not include weekends in the

seven (7) free days available for shippers to clear their cargo from the port before demurrage kicks in, while others start the count even before the cargo is carried on the terminal, which is unfair. These shipping lines also require that the demurrage is paid in dollars ($) and that adds to the plight of shippers which in turn affects the quality and quantity of goods imported and thus has an adverse impact on logistics companies.

Mr. Edward Abban who heads the Operations Department of KDM Global Logistics said the situation “denies the agent the opportunity to ensure goods are cleared within the stipulated seven (7) free days period. He said “the calculation of demurrage is done in foreign currency and each shipping line decides on its exchange rate, whereas, the government, through the Ghana Revenue Authority, provides an exchange rate that can be used by all maritime and airline industry players.”