NEWS\\\ Insurance


Issue 6 2015 - Freight Business Journal


News Roundup Forwarding & Logistics


Weighing into the container weight debate


TT Club’s Peregrine Storrs-Fox outlines what needs to be done to prepare for the amendment to SOLAS (the Convention for Safety of Life at Sea) which becomes mandatory on 1 July next year.


FBJ readers will recall my article last December detailing the significance of the IMO Maritime Safety Committee’s decision to adopt the amendment on verification of gross mass (VGM) of each and every packed container. The implications of this relatively modest change to SOLAS, which


in essence reiterates the shippers’ responsibility to declare gross mass accurately, are reverberating through the international transport community. July 2016 is not far away, particularly with the need to develop consistent, acceptable methods, and common standards, to confirm calibration and certification for both weighing the packed container (‘Method 1’) or ensuring the correct calculation of the sum of all constituent parts of a packed unit (‘Method 2’) as called for in the amendment. As oſten, the devil is in the detail of implementation and various


stakeholders bear levels of responsibility to ensure that the measure is successful. Although the amendment mandating VGM only overtly names the ‘shipper’, the ‘master’ and the ‘terminal representative’, and – by implication – the competent authorities, there are a plethora of potential players in the supply chain that are not specifically drawn into the scope of the new regulation but must still be aware of the need for accurate certification.


The shipper


The ‘shipper’ may encompass a range of people involved in the contracting, packing and transporting of cargo. However, the key commercial relationship is with the entity whose name is placed on the ocean carrier’s bill of lading. Thus, in many cases, the responsibility for actual ‘verified’ declaration will rest with a freight forwarder, logistics operator or NVOC. Apart from having a sustainable method to verify gross mass, the


shipper also needs to communicate it (‘signed’ meaning that there is an accountable person) before preparation of the ship’s stow plan. The information will be sent by the shipper to the carrier, but with joint service arrangements there may be a number of carriers involved, with one taking responsibility to consolidate the manifest information, in addition to communication with the terminal. There is no precise time by which the information needs to be communicated, due to differing requirements around the globe – although advance cargo information requirements may already bring the timing forward for many shipments.


The master


This character in the process is not only the person standing on the ship’s bridge but also has a number of functions within the carrier’s organisation. With joint services, the actual operator of the ship will take the lead role. Implicit in the SOLAS amendment is that the carrier sets in place


processes that ensure that VGM is available and used in planning the ship stow. Arguably, each carrier will need to amend systems and processes to capture additional information (such as whether the shipper is using Method 1 or Method 2 and fields for booked, declared, verified and even measured gross mass). However, the simplest


method might be to amend the booking process, so that the gross mass information is leſt blank in the system until ‘verified’ data are available. This will be effective if it is clearly understood by all service partners with whom the carrier communicates. Clear and enforced procedures will be key. The explicit obligation of the master is simply not to load a container


for which the VGM is not available. This does not mean that one with a VGM is guaranteed to be loaded, since that would derogate from the traditional rights of a master.


The terminal representative


The terminals have been drawn into the new regulation as recipients of information for ship stow planning and, critically, have joint responsibility not to load a container on board a ship if the VGM is not available. There has been considerable debate as to whether terminals need


to be able to weigh containers themselves, not least because of the cost of infrastructure, and amending systems and procedures, with an uncertain return on investment. In most terminals, the commercial relationship is with the carrier alone, although there are many parts of the world where containers are packed at the port, in which case the terminal activities will in future include assisting the shipper in producing the VGM.


Competent authority


National administrations are responsible for setting up or implementing appropriate standards for calibration (weights and measures regulations) and ways of certifying. The named parties will rely on this to work smoothly and, preferably, consistently on a global basis so that trade is not disrupted. Clarity of processes needs to be matched by consistency in


enforcement. Talk of ‘tolerances’ is disingenuous. SOLAS calls for accuracy. Everyone appreciates that some cargo and packing material may be hygroscopic, potentially increasing mass during the journey, but that need not mask fraudulent activity, nor entice over-zealous enforcement. The UK Marine Guidance Note* may be instructive here, stating that enforcement action will only be volunteered where the difference between documented and actual weight exceeds a threshold. The success of the revised SOLAS regulation will be achieved only if ALL in the supply chain are aware of the need to comply – so it’s not a matter of: ‘Who must weigh? … Not me!’


*MGN 534 published by the Maritime & Coastguard Agency www.gov.uk/search?q=MGN+534


The British International Freight Association (BIFA) is organising a conference on 26 November to discuss the new container weighing regulations on 26 November. It will be the second session on that day; the first will cover the new Union Customs Code. The conference will take place at 1 Great George Street, London between 09:30 and 15:30. For more details see www.bifa.org.


Rotterdam-based Broekman Logistics has teamed up with materials handling specialist Van Scherpenzeel to offer a solution for abandoned cargo, which is not allowed into the country and cannot be returned to the owner. Instead of a costly trip to the incinerator, Broekman will ensure confidential destruction of the goods while recovering as many materials as possible. The partners also ensure that goods do not end up back on the unofficial market and, as an Authorised Economic Operator, Broekman has been approved by Customs to handle abandoned cargo. Cargo is transported non-stop from the terminal to Van Scherpenzeel’s processing plant, where there is extensive security and all staff go through a detailed screening process. Recycled materials are distributed to several industries throughout Europe.


Ceva Logistics has opened a global distribution centre for industrial spare parts in Born, the Netherlands. The new centre features 28,000 bin locations and 3,000 sq m floor storage in the warehouse and a yard of 4,000 racking locations and 4,500 sq m floor storage. The location offers full service, including inbound unloading, receipt and put away; outbound picking, packing and loading, and quality inspection.


Canterbury-based logistics firm Salvatori has joined the Palletways network. Salvatori, which is based in Aylesham Industrial Estate, will handle up to 500 pallets in and around the Canterbury and Ashford areas and also has depots in Rochester and Calais.


Asian-based Kerry Logistics Network has won a contract to support with Debenhams’ export market in the Middle East. Kerry Logistics will handle all airfreight from Debenhams’ distribution centre in Peterborough, UK, to destinations in the Middle East, including Dubai, Bahrain, Qatar, Egypt, Jeddah, Saudi Arabia, and Jordan.


DSV Road has appointed Marc Coleman as sector development manager for its automotive team. Based in the UK, his role is to build on the brand’s global heritage in this industry and re-introduce DSV as a fresh player in the sector. He comes from an automotive and logistics background in Birmingham, and has worked with all the major car makers in the UK while at other freight forwarding and logistics companies, including DB Schenker and Agility.


Horse freight specialist New Zealand Bloodstock (NZB) is to start a new monthly service from the UK and Europe to Australia aſter gaining approval from the veterinary department of the Australian government for its new quarantine station in Sussex. It already offers a similar service from the UK to New Zealand. UK logistics is handled by Newmarket-based BBA Shipping and Transport.


Agility has opened a Pharmaceutical Competence Center in Sao Paulo, Brazil. It will be managed by experts from the Middle East- owned logistics firm trained in the benchmark Good Distribution Practice (GDP) standards developed by the World Health Organization and European Union.


Elevator and escalator maker Kone has appointed Damco as its global logistics partner for shipping completed units and spares to selected overseas destinations. Services provided include ocean freight and landside services.


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