Container Weight Mandate 2016: How to Stay in Compliance

The global supply chain market will be subject to new regulations in maritime transport, effective July 1, 2016. The Maritime Safety Committee of the International Maritime Organization (IMO) has approved amendments to the Safety of Life at Sea (SOLAS) convention of 1974. These amendments require that shippers provide a verified gross mass (VGM) for all containers, either electronically or in hard copy. After the mandate is in effect, failure to provide the VGM for each container will result in the container not being loaded onto the vessel.

US regulations already require that all export containers be weighed and verified prior to shipment. The container weight mandate 2016 will provide international accountability for proper weight declaration. Other IMO affiliated countries may have existing regulations in place regarding verification of carrier weights that must be adhered to in addition to the international mandate.

Purpose of the Mandate

The new international requirement is intended to reduce safety hazards and operational issues that result from inaccurate and unstable loading. Some of the results of improper loading can include:

• Serious accident, including sinking or fire aboard maritime vessels
• Supply chain interruptions
• Decreased efficiency
• Unnecessary delays

It has been estimated that $12.8 million in losses was attributed to mis-declaration of cargo between 2006 and 2011. Additionally, several recent fire and sinking incidents, including the MSC Napoli in 2007 and the MSC Flaminia in 2012, have been connected to cargo mis-declaration and subsequent improper loading.

Steps for Compliance

Under the mandate, the VGM for each container is required to account for the following:

• Tare weight of the container
• Weight of any dunnage or other filler packaging
• Weight of all items within the container
• Weight of items’ packaging

This weight can be determined in two ways. First, shippers can weigh each item individually before loading and add the weight of the container and dunnage. The second option is to pass the carrier over a weigh station scale while loaded to a truck and then subtracting the weight of the truck, chassis, and fuel from the scale reading. The mandate specifies that all measurement instruments used must adhere to accuracy standards of the State in which the container is loaded.

The new regulations place responsibility for ensuring the VGM is provided accurately on the shipper. Due to the somewhat unclear definition of “shipper,” this could potentially hold liable a number of entities, including the client that packs the carrier, the logistics company, or the freight forwarder. In the event of an accident, if any or all of these parties were aware of a misrepresentation of the reported VGM, they could be held responsible, fully or partially.

Failure to accurately report the weight of the container could result in the following penalties:

• Fines and other penalties as imposed by the State in which the carrier is loaded
• Repacking costs
• Administration fees for amending documents
• Demurrage charges
• Cost of delayed or cancelled shipments

Implications of the Mandate

As shippers prepare for this mandate to go into effect, the supply chain industry could be effected in a number of ways. To date, a number of questions about the rollout, implementation, and enforcement of the mandate still exist.

For example, it is unclear how containers deemed mis-declared at the terminal should be dealt with–whether the shipper should be responsible for returning and re-declaring the container or the transporter. Additionally, training may be required for various stakeholders in order for the mandate to roll out effectively.

Weighing technology must also be acquired by the shippers responsible for declaring the VGM. This type of technology, in the past, was not a necessary part of their operations. The need for new and additional technology will likely raise costs. The burden of these cost increases will either fall on shippers or consumers.

The mandate does not require that weighing entities be verified or accredited, only that the technology employed be calibrated and in compliance with national accuracy standards. It is at the discretion of the individual States as to whether or not they will require a “verified weigher” status for the party weighing the container.

Support for Implementation

Global supply chain systems are complex and may involve any number of state and international regulations. To avoid violating any obligations or requirements, businesses can turn to Jaguar Freight, a world-class supply chain logistics management company. Our CyberChain technology will ensure that all aspects of your supply transport are in compliance with both international standards and those specific to any state your goods travel through en route to their destination.
Contact us today to learn more about how Jaguar Freight can support you in adhering to the container weight mandate.