Presented to Harbor Transportation Club May 12, 2016 Presented by Cameron Roberts, Roberts & Kehagiaras LLP
According to the JOC: ◦ MSC Napoli; ◦ 660 containers off loaded without water; ◦ +25% or 137 containers varied from the manifest by more than 3M tons; ◦ 1container was 20M tons heavier than manifested. JOC Article, IMO Container Weight Proposal Pits Carriers Against Shippers, October 8, 2013
In May 2014, the Maritime Safety Committee of the International Maritime Organization approved certain Guidelines Regarding the Verified Gross Mass of a Container Carrying Cargo (the “IMO Guidelines”).
Agriculture and forest products; Causes significant competitive disadvantage to US exporters; Shipper knows weight of cargo. Shipper does not know container weight. The rule imposes on shipper liability to certify equipment which is owned/leased/controlled by the carrier. Tare Weights printed on the back of the container typically not accurate;
Does not account for container or weight variance; The unique US supply chain means that the SOLAS documentation requirements will disrupt the flow of cargo through the ports; No means currently exist to facilitate transmission of essential Verified Gross Mass (VGM) data; Cost of implementation imposes significant new costs on all participants in US export supply chain.
“The responsibility for obtaining and documenting the verified gross mass of a packed container lies with the shipper.” Under the IMO Guidelines, “[s]hipper means a legal entity or person named on the bill of lading or sea waybill or equivalent multimodal transport document (e.g. ‘through’ bill of lading) as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a shipping company.”
The "shipper" is the party that appears in the Shipper/Consignor field on the Master Bill of Lading or an equivalent document issued by the VOCC and may be any of the following people/entities: The Beneficial Cargo Owner (i.e. the owner of the goods or the exporter); NVOCC; or For consolidated cargo, the entity that consolidates the cargo (i.e. the "Master Loader").
Shippers or third-parties can: ◦ Weigh a loaded container, or ◦ add the weight of the cargo and the container's tare weight. ◦ For certain commodities, such as scrap metal, unbagged grain and other bulk cargo the loaded container must be weighed. ◦ Use of the second method may be subject to certification by the IMO Member State in which the packing and weighing took place.
The requirements of the “State” in which the equipment is being used, i.e. weighing equipment used must meet national certification and calibration requirements. 29 CFR 1918.85(b)(8) ◦ Any scale used within the United States to weigh containers for the requirements of this section shall meet the accuracy standards of the state or local public authority in which the scale is found.
UK - Coast Guard variation of +/- 5% of the loaded container weight. JP authorities – a variation between +/- 2 and 5%. ◦ http://agtrans.org/wp- content/uploads/2016/02/AgTC-SOLAS-position- paper.pdf NZ – Maritime variation of +/- 60kg (0.1%). ◦ http://www.maritimenz.govt.nz/Consultation/Cont ainer-verification/Container-Weight- Verification.pdf
“Individual, original sealed packages that have the accurate mass of the packages and cargo items clearly and permanently marked on their surfaces, do not need to be weighed again when they are packed into the container.” IMO Guidelines, paragraph 5.1.2.1. Example: Original sealed packages (e.g., flat screen TVs that have their weight (e.g. X kg.) marked by the manufacturer on the box containing the TV).
The IMO Guidelines are clear that the shipper named on the ocean carrier bill of lading is the party responsible for providing the container’s verified gross mass. IMO Guidelines, paragraph 5.1.3. Thus, the “master” forwarder named on the ocean carrier’s bill of lading is responsible for the accurate cargo weight verification of all the cargo from all the co-loading forwarders using the container. NO PASS ON WEIGHTS.
As a Nation ational is l issue, f fin ines an and oth other p penalt ltie ies w will ill be e imp impos osed und under na national le legis isla latio ion. As a Commercial issue, the penalties may involve repacking costs, administration fees for amending documents, demurrage charges, delayed or cancelled shipments etc. The new SOLAS requirements apply equally to both under and overweight containers.
Th This is is is a Nation ational l is issue, and each State will determine who is the appropriate regulator.
“At a meeting hosted by the Federal Maritime Commission, the Coast Guard said it was up to shipping lines to enforce the new requirement. Carriers could then call on the Coast Guard to block or remove containers from ships if they aren’t certified, but the shippers wouldn’t be penalized by law enforcement, said Adm. Paul Thomas, who oversees inspections and compli- ance.” http://www.wsj.com/articles/container-weight-rule-wont- carry-penalties-in-us-coast-guard-1455835575
US Coast Guard issued a Marine Safety Information Bulletin, April 28, 2016; Acceptable VGM methods are: (1) the terminal weighs the container, and when duly authorized, verifies the VGM on behalf of the shipper, and (2) the shipper and carrier reach agreement whereby the shipper verifies the weight of the cargo, dunnage, and other securing material, and the container’s tare weight is provided and verified by the carrier. https://www.uscg.mil/msib/docs/009_16_4-28-2016.pdf
US Coast Guard issued a Marine Safety Information Bulletin, April 28, 2016; ◦ For the purposes of determining the VGM of a container, any equipment currently being used to comply with Federal or State laws, including the Intermodal Safe Container Transportation Act and the container weight requirements in 29 CFR 1918.85(b), are acceptable for the purpose of complying with SOLAS. https://www.uscg.mil/msib/docs/009_16_4-28-2016.pdf
Intermodal Safe Container Act 1992 ◦ Reimbursement of costs ◦ Liens on cargo ◦ Impounds of trailer ◦ State law enforcement – fine or penalty Overweight container penalties - CA Vehicle Code § 42030(a)
1918.85(b) Container weight. No container shall be hoisted by any lifting appliance unless the following conditions have been met: (1) The employer shall determine from the carrier whether a container to be hoisted is loaded or empty. (2) For a loaded container: (i) The actual gross weight shall be plainly marked and visible to the crane …; or (ii) The cargo stowage plan or equivalent permanently recorded display serving the same purpose, containing the actual gross weight and the serial number or other positive identification of that specific container, shall be provided to the crane … (3) Every outbound container received at a marine terminal ready to load aboard a vessel without further consolidation or loading shall be weighed to obtain the actual gross weight, either at the terminal or elsewhere, before being hoisted. 1903.15 The Area Director shall determine the amount of any proposed penalty… $200 http://www.oshrc.gov/decisions/html_2009/08-1428.htm
The duly authorized contact person of the shipper (by name and signature provided in the statement) hereby certifies, that the above mentioned shipment details have been evaluated carefully and according to the requirements of the International Convention for the Safety of Life at Sea (SOLAS); as they have been published in Chapter VI, Part A, Regulation 2 - Cargo Information. We understand and confirm that missing, incorrect and/ or belated VGM statements may result in non-acceptance of the shipment by the vessel operating ocean carriers and a delay in the originally planned schedule. Any a addit dditio ional c l cost c caused by d by de dela lay due ue to to non non- accept ptance o of the s shipm ipment by by the carrie rrier t to be be covered by d by VGM GM de decla lari ring pa part rty (as u unde dersig igned a abo bove).
(c) Customer acknowledges that it is required to provide verified weights obtained on calibrated, certified equipment of all cargo that is to be tendered to steamship lines and represents that Company is entitled to rely on the accuracy of such weights and to counter-sign or endorse it as agent of Customer in order to provide the certified weight to the steamship lines. The Customer agrees that it shall indemnify and hold the Company harmless from any and all claims, losses, penalties or other costs resulting from any incorrect or questionable statements of the weight provided by the Customer or its agent or contractor on which the Company relies. Sign and swear to any document and to perform any act that may be necessary or required by law or regulation in connection with the lading, or endorse or countersign weight certificates or tickets provided by grantor or grantor’s designee, or operation of any vessel or other means of conveyance .
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