A weighty issue

In November 2014, the International Maritime Organization (IMO) amended the International Convention for the Safety at Sea (SOLAS), Chapter VI, Part A, Regulation 2, to require that a packed container’s gross mass be verified (verified gross mass, or VGM) by the shipper prior to loading and stowage aboard a vessel. The new rule was scheduled to go into effect July 1, 2016, in all 171 IMO member countries, including the United States.

WHY IS THIS IMPORTANT?

It is simply a matter of safety for all those involved in the supply chain, from truckers to terminal operators to stevedores and to anyone else exposed to loaded containers. It’s also critically important for vessel operators to have accurate weights for their laden containers to safely stow them on their vessels and for the vessels themselves to sail safely. Misdeclaration of containers’ weights is still a problem around the world, and the goal of the SOLAS amendment is to eliminate this for all stakeholders.

RESPONSIBLE PARTIES & ALLOWED METHODS

The SOLAS amendment provides that the “shipper” be solely responsible for providing the VGM and for transmitting that information to the vessel-operating common carrier prior to loading the container on the vessel.

Shippers, or third parties working on their behalves, have two ways they can determine a container’s VGM:

1. weighing the container after it has been packed using a scale that is calibrated and certified, or
2. adding the weight of the cargo to that of the container’s tare weight.

However, certain commodities, such as scrap metal, plastic scrap, dry bulk grains and other bulk cargo, by nature of how they’re shipped cannot be weighed using method two.

Carriers have informed the shipping community that they will accept the tare weight written on the side of an individual container, or, in many cases, carriers will provide the tare weight for the specific container being loaded on their websites.

The IMO guidelines apply only to ocean carrier and ocean terminal operators and not to railroads. Therefore, railroads will load a container for shipment by rail without knowing the VGM.

COMMUNICATION ISSUES

According to the regulations, a container’s VGM can be submitted either electronically as an electronic data interchange (EDI) message (an EDI message called VERMAS, referring to VGM, with a code of 304 has been established for this purpose), via electronic portals used by carriers or through a carrier’s own electronic portal. The weight certification must be signed by a person duly authorized by the shipper—an electronic signature is acceptable. Ocean carriers in the United States have said that the VGM cut-off will be noon on the same day as the receiving cut-off time. (For companies using Laufer’s services, we will confirm VGM cut-off at the time of booking.)

MISSING OR INNACURATE VGM?

Each terminal will have its own policy for containers that arrive without a VGM; however, the majority have implemented a “no doc, no gate” policy, whereby a container without a VGM will not be allowed into an ocean terminal. In some cases, the container may have to be picked up and trucked to a scale to determine the VGM and then returned to port.

Some terminals offer weighing services. Baltimore; Charleston, South Carolina; and Savannah, Georgia, terminals will weigh a container for a fee. U.S. West Coast ports—Los Angeles/Long Beach and Oakland in California; Seattle/Tacoma in Washington; and Portland in Oregon—have stated they will not offer weighing services.

Carriers in the United States are saying that without a VGM prior to loading by the specified VGM cut-off, they will maintain a no-load policy and containers will be held in limbo at the receiving terminal until an accurate VGM can be provided. Demurrage and/or any other costs incurred by the carrier to move the nonverified container within the terminal as a result of an inaccurate or missing VGM will be on the account of the shipper. At this point, we are not seeing any “fines” associated with inaccurate or late VGMs.

Each terminal will have its own policy for containers that arrive without a VGM; however, the majority have implemented a “no doc, no gate” policy, whereby a container without a VGM will not be allowed into an ocean terminal. In some cases, the container may have to be picked up and trucked to a scale to determine the VGM and then returned to port.

While the SOLAS amendment calls for the VGM (cargo weight plus tare weight) to be accurate, many IMO member countries are in the process of declaring acceptable tolerances for containers to be loaded on a vessel. (Japan is considering plus or minus 5 percent, for example, while in India it is plus or minus 200 kilograms; Pakistan allows a 5 percent tolerance; and China’s is 5 percent, or 1 metric ton.) No such “allowable” tolerance has been introduced in the United States as of press time.

INTERPRETATION & IMPLEMENTATION

Carriers, terminals, ports and member countries are not yet aligned on procedural implementation and interpretation regarding the SOLAS amendment. Very few IMO member countries have issued formal guidelines or regulations regarding the SOLAS amendment. Each member nation has very different infrastructure and methodology to provide verified and accurate weights of loaded containers and processes to handle export containers.

Laufer expects the measure to go into effect as planned July 1, 2016. However, the London-based IMO is suggesting a 90-day “grace period” to allow the industry time to accommodate this new global regulation. While shippers will need to provide the VGM of a container beginning July 1, 2016, the IMO has said no enforcement will occur for 90 days.

At Laufer Group we fully support the intent of the amendment and agree that providing accurate container weights is critical to the safety of the entire supply chain. Despite the uncertainty and various degrees of industry preparedness, U.S. exporters of recyclables should start by contacting their logistics provider to:

1. consult on which method is best for each loading location;
2. prepare the VGM template required for each container;
3. weigh through third parties of loaded export containers;
4. submit the VGM in a timely fashion to the ocean carriers; and
5. seek updates on SOLAS amendment implementation.

This article was submitted by Laufer Group International, headquartered in New York City, with offices throughout the United States and worldwide. More information is available at www2.laufer.com.