solas-verified gross mass presentation_local_communication_portcalls - mindanao shipping conference...

8/17/2019 SOLAS-Verified Gross Mass presentation_local_communication_PortCalls - Mindanao Shipping Conference 2016

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SOLAS

VERIFIED GROSS MASSApril 2016

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2/19

A packed container will not be allowed to be loaded on board vessels unless the

Verified Gross Mass (VGM) of the container has been provided by the shipper to

the shipping line or container terminal prior to load list cut off time.

What is the change about?


3/19

In November 2014, the International Maritime Organisation (IMO) adopted a

resolution to amend the Safety of Life at Sea (SOLAS) Convention with the

objective of improving safety of people and assets not only at sea but also inland.

The absence of an accurate weight declaration has resulted in accidents.

An accurate weight provided in advance will allow shipping lines to preparemore reliable stowage plans.

What is the rationale behind the change?


4/19

What are the problems that can result fromoverweight containers?

Damage to ships

Incorrect vessel stowage decisions

Collapsed container stacks


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Damage to containers

Cargo liability claims

Injury and death to seafarers

and shore-side workers


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Chassis damage at terminals

Liability for accidents and

fines for overweight on roads


7/19

VCW is an industry requirement that will be effective by July 1st 2016

There are 2 permissible methods of weighing:

Method 1: Requires weighing the container after it has been packed.

Method 2: Requires weighing all the cargo and contents of the container and adding

those weights to the container’s tare weight as indicated on the door end of the

container.

The shipper has the responsibility to weigh the packed container or its contents.

Key Facts: SOLAS Weight Initiative


8/19

Two weighing methods

Requires weighing the containers after it

has been packed.

Requires weighing all the cargo and

contents of the container and adding

those weights to the container’s tare

weight as indicated on the door end ofthe container.

Method 2 will not be practical for shippers of

bulk commodities like scrap, grain, etc., and it will

be up to local authorities to grant permission to

use this method.


9/19

Shipper can provide the VGM to the carrier using any of the sources:

Liner website

3rd party ports system such as Inttra

Email

Alternatively, shipper can provide the VGM to the terminal who in turn will relay

the information to the carrier through EDI or manual process

Shipper may also choose to use a weighing facility in or outside the terminal to

get the VGM. The facility will provide the VGM to the carrier through EDI or

manual process.

Submission of VGM is Shippers responsibility.


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Who is the shipper?

In the context of the new regulation, who is the shipper?

The shipper is the legal entity;

Named on the ocean bill of lading or sea way bill or equivalent multimodal

transport document as shipper

With whom (or in whose name or on whose behalf) a contract of carriage has

been concluded with a shipping company


11/19

Impact to customers

Shipper will need to plan for VGM in the shipment cycle

Shipper will need to provide VGM information of their containers on shipping

instructions no matter whether they send this documentation manually via third

party or internal systems or via EDI

If a shipper does not comply and provide the VGM information in time the carrier

and the terminal representative will not load the containers on the vessel


12/19

Impact to customers

Depending on how local government will interpret and implement:

They need to establish a process between supply chain members (forwarders,

truckers, terminals and shipping line) integrating weighing service

Shippers need to calculate the potential cost impact for arranging this service asthey are legally responsible to obtain and provide VGM

They need to be aware of possible local legislation regarding government

imposed penalties/fines


13/19

Container isweighed on

shipper account

Carrier website oronline system

Information Flow – VGM Submission

Shipper FAX, EDI,

Email, Web

InformationFlow

Weighingfacility

Process to handle the containerwill be based on the local

country rules whether to Allowgate-in, Reject gate-in,

Arrange weight etc.,

Yes

No

Yes

No

No

Yes

VGMsubmitted

with loadlist beforedeadline

InformationFlow

InformationFlow

Yes

No

To carrier

Terminal

Containers loaded onvessel

Container notloaded


14/19

National & Commercial Focus

Government Implementation

Vendor Readiness

Customer Awareness


15/19


Government Implementation

Determine the proper local authority who is responsible in

interpreting the new legislation

Understand how the local authority will interpret the new legislation


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Vendor ReadinessCoordinate with the Terminals to discuss the standard process for VGM.

a. Are they planning to implement No-VGM – No Gate In process or would

they allow units to gate-In without VGM ?

b. Do the terminals intend to have a weighing facility ?

c. Would they be willing to send VGM on behalf of Shipper if the trucker

arrives at the Gate with VGM document ?

d. How would the VGM related costs be invoiced?

e. How would they manage units arriving from Barge / Rail?

f. Would the terminal be sending the revised Edi version of Load Baplie to

the Vessel Master?


17/19


Customer Awareness

Cascaded SOLAS in following events:

- Association of International Shipping Lines Meeting

- PISFA / Portcalls Forum - Manila

- DTI Export Marketing Bureau Forum

- PISM General Membership Meeting

- Mindanao Shipping Conference – Davao

- Visayas Shipping Conference – Cebu


18/19


http://d/VCW%20Q&A.pdfhttp://d/VCW%20Infographic.pdf


19/19

SAFETY FIRSTSOLAS Weight Initiative doesmake sense

People’s safety is crucial in our industry.

Today our people don’t know the actual weight ofthe containers they are handling, and we have a highrisk of accidents.

SOLAS weight initiative will change this. As of July1st 2016, all containers will have an accurate weight.

Having an accurate weight will reduce accidents andcontribute to get our people home safe every day.

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