Opinion: SOLAS Container Weight Rule Reaches Critical Milestones
This Opinion piece appears in the Aug. 29 print edition of Transport Topics. Click here to subscribe today.
By Eric Geerts
Director
Descartes Systems Group
Approximately 10% of ocean cargo may cite an inaccurate weight, according to Loadstar. In 2015, an estimated 16.3 million out of 200.5 million TEUs, or industry- standard 20-foot-equivalent container units, of cargo were shipped without an accurate measurement, which speaks to an industrywide problem.
Geerts Container stack collapses, vessel instability, injury to dock and vessel workers, damage to cargo, ships and port machinery, insurance claims and significant environmental effects have added to the urgency for an accurate container weight. In addition, with more megaships, the need for an accurate weight is intensifying due to the scale of a potential incident. Incorrect weights also can ripple into rail and truck modes of transport as cargo transfers to its final or intermediate destination.
As a result, the International Maritime Organization, or IMO, implemented an amendment to existing Safety of Life at Sea, or SOLAS, legislation that requires containers and their contents to be weighed before loading. The regulation went into effect July 1, when loading a packed container onto a vessel was prohibited in many locations if the operator and marine terminal did not have a verified container weight or a Verified Gross Mass, or VGM, on file.
On May 23, however, the IMO issued memorandum MSC.1/Circ.1548, stating that countries take a “practical and pragmatic approach” to enforcing the requirement for three months after July 1, when it went into effect. With the global export industry already teeming with analyses of the regulation, how are countries to interpret the update?
The memo has clarified a number of topics for ocean trade. For example: A VGM was unlikely to be required for transshipments — the shipment of goods via an intermediate location — in transit before July 1. In addition, the industry was reminded that container weight is not the only aspect of ocean shipment safety. Stability requirements, for example, reach back to 1974, and many subsequent regulations and amendments remain in effect. As for the “practical and pragmatic approach” to enforcement, the notice refers to a sense of flexibility, specifically as it relates to information sharing.
The enforcement regulation is still in the hands of individual nations. Despite the call from the IMO for flexibility, many carriers and countries keep saying there would be no exceptions, even if the publication of the legislation took place after July 1. October 1 is noted as the closure date on any flexibility that may be allowed. At that time, it can be interpreted that full enforcement will begin as specified in the original regulation. It is also important to note that if a country has not published national legislation on the subject, the SOLAS amendment is still in force.
From the calibration of weighing equipment to how cargo should be weighed, when weighing should occur in the supply chain, and even how to account for simple variances in humidity, complying with the mandate is not easy, given the multitude of complex factors at play. Shippers also must use the correct tare weight of the container, but not all containers have the same weight. In theory, the weight stated on the door of the container should be used. Some carriers may provide information tables for their own containers, but there is no single database of all tare weights.
The amendment applies to all 171 IMO member countries as well as three associate members. Most nations are reacting to the update with the same level of urgency as before the memo. Some nations have issued comprehensive guidelines, but others have not issued any advice or even a simple analysis. Agencies such as the U.S. Coast Guard have noted that existing U.S. laws are equal to the requirements under the SOLAS amendment, creating some confusion in the industry. The World Shipping Organization has been tracking, and will continue to track, the progress of each nation.
The regulation stipulates that shippers, as noted on the Bill of Lading, are responsible for providing a VGM to carriers. To communicate VGM information, an Electronic Data Interchange, or EDI, message, called the Verified Gross Mass or VERMAS, has been developed. Designed to contain all of the required information, including optional fields, it is the preferred communication protocol of many carriers, freight forwarders and shippers. This methodology minimizes the impact to the existing communication of shipping instructions, and expedites the shipping instruction deadline to meet the new VGM closing of the carrier.
The new requirement is also about moving data as well as improving ocean safety standards. Many shippers and intermediaries are evaluating technology solutions that can help transmit required VGM data in the right format at the right time. In addition, data transmission times, as well as messaging protocols, may vary between ports, carriers, shippers and the vessel. Data that exists in current enterprise resource planning software, or ERP, and other systems may also need to be reviewed for accuracy. Technology can help organizations move seamlessly into compliance by simplifying these complexities, centralizing processes from VGM, shipping instructions, bookings and more. Technology also offers a complete book-to-bill workflow.
Geerts is director of product management for EU Customs, ports and ocean shipment services at Descartes. He previously worked for Porthus, and over the past 10 years he has built considerable experience in maritime logistics and customs compliance software, electronic messaging and beyond. He has a master’s degree in commercial engineering with a specialization.
