SOLAS VGM - WEIGHING HEAVILY ON SHIPPERS

The Safety of Life at Sea (SOLAS) weight verification requirements are looming. Misdeclaration of cargo weight has been an ongoing problem for years, with approximately 10% of shipments citing an inaccurate weight*. In 2015 alone, almost three quarters of ship losses worldwide were caused by foundering**, of which misdeclaration of cargo weight may have played a part. This of course has posed a significant risk to life, vessels, port machinery, cargo, and the environment.

Action clearly needed to be taken to mitigate the risk of loss of cargo from vessels and improving safety at sea. In an effort to tackle this, from 1st July 2016 shippers will be obliged to provide the ocean carrier and port terminal with the verified gross mass (VGM) for each shipping container. If the VGM is not obtained prior to loading, then the container cannot be loaded onto the ship.

However, it isn’t all going to be plain sailing:

• Few countries are ready. With less than a month to go until the requirements come into effect, less than 15% of the International Maritime Organisation (IMO) Member States have issued guidelines on how they intend to enforce the regulation (Source: ICHCA International).

• The IMO have tried to address this by giving countries a three month grace period to encourage a ‘practical and pragmatic’ approach, but this does not seem long to allow the majority of countries who are unprepared.

• This may cause confusion in ports between shippers and ocean carriers – potentially creating delays in the transport of cargo; fines; unexpected transport costs and stock shortages.

• Electronic data systems between the carriers, ports, and shippers will need to be implemented at additional cost.

I’ve highlighted three essential tips for shippers to help prepare themselves for these requirements to avoid costly fines, delays, or accidents:

1. Put internal guidelines and procedures in place. Shippers can make life easier for themselves by ensuring that they have guidelines in place to ensure that they can obtain the VGM in plenty of time to submit to the carrier.

2. Collaborate and communicate. Work closely with your freight forwarders, logistics providers or terminal operators to determine what services they can provide to help you in obtaining the VGM. This will help identify the most appropriate way to comply with SOLAS.

3. Ensure the correct communication systems are in place. The preferred system is VERMAS, an electronic interchange message system designed to contain all the required fields to comply with SOLAS.

Remember, the key is in better communication across the supply chain, but it must be instigated by shippers as they are ultimately responsible.

Will the increased need of electronic communications systems open the door for more cyber piracy towards cargo? My next blog will cover the issue of online hacking to target valuable cargoes on board ships at sea and how it can be prevented.

*Source: Loadstar

**Source: Statista

I’m a Regional Marine Underwriting Manager at CNA Hardy and have specialised in this sector for over fifteen years. Follow me on LinkedIn to keep up with the latest Marine and Cargo insights from CNA Hardy.

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