SOLAS Verified Container Weight Maersk Line

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Randolph Rose
9 years ago
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1 1 SOLAS Verified Container Weight Maersk Line

2 Agenda Agenda 1 Safety first 2 Customer impact 3 Industry approach 4 What will it mean? 2 September 16, 2015

3 1 Safety first SOLAS weight initiative - Safety first! Eliminate the accidents caused by misdeclared container weight Provide assurance to all parties in the supply chain Improve the safety of the:- Workforce Vessels/Terminals/assets Equipment June 2011: Container ship Deneb in Algeciras - Consequences of misdeclared container weights a pictorial here 3 September 16, 2015

4 2 Customer impact What does it mean to customers? 1 2 Legal requirements Effective 1/ no container to be loaded unless it has a verified container weight NO exception! 2 permissible methods for weighing: 1) Method 1: Requires weighing the container after it has been packed. 2) Method 2: Requires weighing all the cargo and contents of the container and adding those weights to the container s tare weight as indicated on the door end of the container. 3 Shipper is always responsible irrespective if delegated to a 3 rd party or similar. and further details in IMO/WSC guidelines. Impact for customers Shippers to establish process/edi with venders (forwarders, truckers, terminals and shipping line) Shippers to plan for VCW in the shipment cycle (time) 25% SI received after vessel cut-off Potential cost impact for arranging the service also affecting their pricing Government imposed penalties/fines unknown depending on local legislation Shippers to clarify/outline responsibility once forwarders/booking agents are used Maersk Line readiness Product catalogue update, pricing guideline and AFLS updates Prepare SAL/CUS as to new product Process to be managed via GCSS pending tray (new activity) Train CUS in new solution Filing of certificate, similar to Shipping Instructions New repository to retrieve documents new/existing? ML.Com/EDI/FAX/Manuel/3 rd party solution to be developed Priority on ML.com considering +50% booking via portal and many changes to operational process e.g. EDI with terminals, impact to loadlist etc. 4

5 2 Customer facing processes Responsible Physical flow Paper flow Shipper 100% responsible Physical weight (Method 1 or 2) VGM submission 3a 3b 3c 3d Truckers, railproviders, depots etc 3 rd PWeb Maerskline.com EDI Fax or manual Terminal VGM follow up process Update in GCSS Missing VGM roll over Reconciliation Cargo readiness 4

6 2 Operational Process and IT Process: 1 1a 2 4 Shipper Establish and send VGM to ML via inland vendor(1a), terminal(1b) or direct(1c) 1c 1b Receive VGM and give details to terminal to allow gate-in Receive VGM and EDI to ML (GCSS) or 2 nd (revised weight) 3 In case of difference or weight is not received, then exception handling Only load containers with a VGM (Load list) Terminal can arranging weighing and obtain the VGM or Do not allow the container to gate-in IT/EDI: SOLUTION: - Global SMDG group is working on a new uniform EDI message - A new message between ML and Terminal with a mere Y or N if VGM must be implemented (Pilot, test etc.) 6

7 3 Industry approach Approach by Maersk Line Industry mobilization Awareness Mobilize governments Promotestandards Key risks: 1. Most governments have no plans or structured work in progress to adopt industry standards (Local associations). 2. Massive investments are required across the industry (Weight bridges, EDI setups, Certifications) Industry standards & Pilots Local industry workgroups Commitment to standards/local variants Testing industry solutions Disclaimer in contracts Industry readiness Implementation (EDI, Contracts, shipper certifications) Shippers Vendors Maersk Line: SAL, CS and OPS July 1 st September 16, 2015

8 4 What will it mean? What could we imagine you need to evaluate? Contracting with your customers? M/H vs. C/H is it part our your service? When am I the shipper and when the booking party? Impact to house B/L (changes to clauses)? How to arrange weight on FCL containers? EDI with customers? EDI with Shipping Lines or other vendors? EDI through 3P webs? System/process/product catalogue Job-costing process Other elements? How do I help the global implementation and readiness?

FAQs - New SOLAS regulation

FAQs - New SOLAS regulation alender_15jun15.indd 2 15.06.15 15:18 1. What is Verified Gross Mass (VGM)? Verified Gross Mass means that the weight of each packed container must be proven. This Verified Gross Weight must not only consider