The SOLAS VGM Regulation: Impact and Implementation Status in Global Shipping

Introduction to SOLAS VGM Regulation

In a significant move to enhance maritime safety, the International Maritime Organization (IMO) has amended the convention for the Safety of Life at Sea (SOLAS). Effective from July 1, 2016, this amendment requires the provision of verified gross mass (VGM) information for all packed containers. This new global law prohibits the loading of containers without specified VGM, marking a crucial shift in international shipping practices.

As we delve into the impact and implementation status of this new VGM regulation, it's essential to understand its far-reaching implications for shippers, carriers, and terminal operators worldwide. The regulation applies to all packed containers to be loaded on vessels under the SOLAS regime in international maritime traffic, affecting countless shipments across the globe.

Key facts about the SOLAS VGM regulation:

• Effective date: July 1, 2016
• Applies to: All packed containers in international maritime traffic
• Requirement: Provision of verified gross mass information
• Consequence: Containers without VGM cannot be loaded onto vessels

As we navigate through this significant change in the shipping industry, we at FreightAmigo are committed to helping our clients understand and adapt to these new requirements. Our Digital Logistics Platform is designed to streamline processes and ensure compliance with regulations like SOLAS VGM, making your shipping experience hassle-free and efficient.

Understanding Gross Mass Verification Methods

The SOLAS VGM regulation outlines two permissible methods for verifying the gross mass of packed containers. Understanding these methods is crucial for shippers to ensure compliance and avoid potential delays or penalties.

Method 1: Weighing the Packed Container

This method involves weighing the entire packed and sealed container using calibrated and certified equipment. It's a straightforward approach that provides an accurate gross mass of the container.

Method 2: Calculated Weight

The second method involves a calculation process:

• Weigh all packages and cargo items individually
• Add the weights of packing materials and securing materials
• Add the tare weight of the container
• Sum up all these weights to obtain the gross mass

It's important to note that this method requires approval and certification from a national regulatory body. While it offers flexibility, it may not be practical for bulk commodities like scrap or grain.

Regardless of the method chosen, weight estimation is not permitted under any circumstances. This strict requirement underscores the importance of accurate weight verification in ensuring maritime safety.

Implementation Challenges and Solutions

The implementation of these methods has presented some challenges:

• Many ports and terminals are likely to adopt weighing containers at the terminal due to the availability of equipment.
• This approach requires advance notice and the transmission of VGM information back to the shipping company.
• Some ports and terminals have adopted a "NO VGM, no entry" policy, necessitating weighing in advance.
• The adoption of self-weighing options has been slow due to the need for certified equipment.

At FreightAmigo, we understand these challenges and are prepared to assist our clients in navigating them. Our Digital Logistics Platform can help streamline the process of obtaining and submitting VGM information, ensuring your shipments comply with the new regulations without causing delays or disruptions to your supply chain.

Emerging VGM Weighing Technologies

The SOLAS VGM regulation has sparked innovation in the container weighing technology sector. As demand for container weighing capabilities increases, technology companies are stepping up to offer solutions that balance accuracy, efficiency, and practicality.

Portable Weighing Solutions

To meet the growing need for flexible weighing options, several companies have introduced portable container weighing systems. These innovative solutions are designed to make compliance more accessible and cost-effective for shippers of all sizes.

Some notable examples include:

• Bison (New Zealand): This company has developed two mobile container weighing systems:
  • A system with four load cells placed under the corners of a container
  • A solution for weighing containers while loaded onto a truck chassis
• Hy-Dynamix (UK): Their Hy-Weight system offers a self-contained solution that doesn't require cranes or weigh-bridges. It uses four corner hydraulic elevation jacks and can weigh containers up to 35 tonnes.

These portable solutions offer several advantages:

• Flexibility in weighing location
• Reduced dependency on terminal weighing facilities
• Potential for cost savings in the long run
• Ability to verify weight before reaching the port, avoiding potential delays

Terminal Weighing Facilities

While portable solutions are gaining traction, many ports and terminals are also upgrading their facilities to offer weighing services. This approach has its own set of advantages:

• Centralized weighing process
• Potentially faster turnaround times
• Direct integration with port management systems

However, reliance on terminal weighing facilities may lead to bottlenecks during peak times and could result in additional charges for shippers.

FreightAmigo's Role in VGM Compliance

At FreightAmigo, we're committed to helping our clients navigate these technological advancements. Our Digital Logistics Platform can integrate with various weighing technologies, ensuring that VGM data is accurately captured and transmitted to all relevant parties. We can help you choose the most suitable weighing method for your shipments, considering factors such as cost, efficiency, and compliance requirements.

Impact on Shippers

The SOLAS VGM regulation has significant implications for shippers, who are now at the forefront of ensuring compliance. Understanding these impacts is crucial for maintaining smooth operations and avoiding potential disruptions in the supply chain.

Key Responsibilities for Shippers

Under the new IMO regulation, shippers bear the primary responsibility for providing VGM information. Here are the key points shippers need to be aware of:

• Provision of VGM: Shippers must provide the carrier and terminal representative with the VGM for each container before it's loaded onto the vessel.
• Legal Entity: The shipper, in this context, is the legal entity named on the multi-modal transport document (such as the Bill of Lading or Sea Waybill) who has been contracted for carriage by a shipping company.
• Delegation: Even if the task is delegated, the shipper remains responsible for providing accurate VGM information.
• Documentation: VGM information needs to be provided on shipping instructions, either manually or via Electronic Data Interchange (EDI).

Operational Changes

To comply with the VGM regulations, shippers may need to make several operational changes:

• Process Integration: Verification of Gross Mass needs to be integrated into the shipment process, involving coordination with various supply chain members such as freight forwarders, trucking companies, terminals, and shipping lines.
• Cost Considerations: As the legally responsible party for obtaining and providing VGM, shippers need to be aware of potential cost impacts for this service.
• Compliance with Local Legislation: Shippers must be aware that local legislation and imposed penalties or fines might differ from country to country.
• Timing: Non-compliance or delayed VGM information will result in refusal to load containers, potentially causing significant disruptions and delays.

FreightAmigo's Support for Shippers

At FreightAmigo, we understand the challenges these new responsibilities pose for shippers. Our Digital Logistics Platform is designed to support you in meeting these new requirements efficiently:

• VGM Data Management: Our platform can help you manage and submit VGM data accurately and on time.
• Process Automation: We offer tools to automate the integration of VGM verification into your shipping process.
• Compliance Guidance: Our team can provide up-to-date information on local VGM regulations and requirements.
• Cost Optimization: We can help you explore cost-effective solutions for VGM verification and submission.

By leveraging our Digital Logistics Solution, shippers can navigate the complexities of VGM compliance with greater ease and confidence.

Impact on Vendors and Terminal Operators

The SOLAS VGM regulation doesn't just affect shippers; it also has significant implications for vendors and terminal operators. These stakeholders play a crucial role in ensuring compliance and maintaining the smooth flow of container traffic.

Responsibilities of Terminal Operators

Under the new regulations, terminal operators face several new responsibilities:

• VGM Verification: Terminal operators are obligated to check for VGM details before scheduling containers for stowing.
• Loading Prohibition: Containers without VGM are prohibited from loading, making terminal operators key enforcers of the regulation.
• Information Management: Terminals need to have processes in place (such as EDI) to receive verified gross mass specifications from shippers or carriers.
• Weighing Services: If containers are weighed at the terminal, operators need to ensure the obtained information is sent back to the carrier.

Challenges for Terminal Operators

The implementation of VGM regulations presents several challenges for terminal operators:

• Infrastructure Investment: Many terminals have had to invest in weighing equipment to offer VGM services.
• Process Changes: New procedures have been necessary to integrate VGM checks into existing terminal operations.
• Information Flow: Ensuring smooth and accurate flow of VGM information between shippers, carriers, and the terminal has been a key challenge.
• Capacity Management: Terminals need to manage potential bottlenecks caused by on-site weighing services.

Variations in Terminal Policies

It's important to note that terminal policies regarding VGM can vary significantly:

• Some terminals offer weighing services at the gate or within terminal grounds.
• Others, like in New Zealand, have adopted a strict "NO VGM, no entry" policy, requiring weighing in advance.
• The consequences and fines for non-compliance are dictated by national legislation, leading to variations in enforcement across different countries.

FreightAmigo's Role in Supporting Terminal Operations

At FreightAmigo, we recognize the crucial role that terminal operators play in the VGM compliance process. Our Digital Logistics Platform offers several features to support terminal operations:

• Data Integration: Our platform can integrate with terminal operating systems to ensure smooth flow of VGM information.
• Advance Notification: We facilitate advance VGM submission, helping terminals plan their operations more efficiently.
• Compliance Tracking: Our system can help track compliance rates and identify potential issues before they cause disruptions.
• Communication Tools: We offer tools to enhance communication between shippers, carriers, and terminal operators, ensuring everyone is on the same page regarding VGM requirements.

By leveraging our Digital Logistics Solution, terminal operators can streamline their VGM-related processes, enhance compliance, and maintain efficient operations.