The right of shipping lines to penalise shippers for the misdeclaration of container weights has been in place for some time, as we have reported in previous news articles. Now another shipping line is getting serious about implementing penalties and all parties should take notice. Image above: P & O Nedlloyd Genoa: Overweight containers contributed to this incident. (Source – U.K. Marine Accident Investigation Branch).
Container ship operators have the authority to impose penalties under the Australian Maritime Safety Authority (AMSA), the Marine Order 42. The Heavy Vehicle National Law (HVNL) provides that every party in the supply chain has a duty to ensure the safety of their transport activities. Since July 2016, the International Safety of Life at Sea Convention (SOLAS) has required shippers to obtain and document the Verified Gross Mass (VGM) of a packed container prior to vessel loading.
Ocean Network Express (ONE) first commenced the imposition of a weight discrepancy fee starting 01 July 2022 for bookings accepted on or after that date. The carrier has advised that the penalty fee applies where the cargo weight deviated by more than +/- 3 tons per TEU (twenty-foot equivalent unit) from the bill of lading instructions and Verified Gross Mass (VGM) documentation.
ONE’s Weight Discrepancy Surcharge (WDS) starts at US$2,000 per container. In relation to the VGM amendment and misdeclaration after VGM cutoff, there will be amendment and misdeclaration fees applied.
This week Pacific International Lines (PIL), who are agents for Pacific Asia Express (PAE) have also announced implementation of the fee. Their statement includes the following information:
“To help you our valued customers meet the requirements of SOLAS, we would like to inform you that, with effect from 15 November 2022 (based on Port of Loading sailing date), we will implement a Discrepancy Fee (DCF) on any shipper with shipments found to have weight discrepancies between the Shipping Instruction (SI) weight – comprising cargo weight and container tare weight, and the VGM declared.
DCF will be applied if weight deviation is more than +/- 1 tonne, based on the following criteria:
- USD 200 per container for any weight deviations equal or more than +/- 10% but less than 15%.
• USD 1000 per container for any weight deviations equal or more than +/- 15%.”
What is Verified Gross Mass (VGM)?
Effective from 01 July 2016, with the SOLAS (Safety of Life at Sea) amendment covering container weighing regulations, a packed container is no longer be allowed to be loaded on board vessels unless its Verified Gross Mass (VGM) has been provided by the shipper to the ocean carriers and/or port terminal representatives prior to the load list cut-off date.
The regulation was adopted by the IMO (International Maritime Organization) to increase maritime safety and reduce the dangers to cargo, containers, and all those involved in container transport throughout the supply chain.
Methods of verifying gross mass
The shipper is obliged to verify the gross mass of the containers carrying their cargo by either of two permissible weighing methods before these containers can be loaded on a vessel.
Method 1
Requires weighing the container after it has been packed to determine the real weight of the container including tare. This will often involve using a weighbridge.
Method 2
Requires weighing the whole cargo and contents, including packing, and adding those weights to the container’s tare weight – as indicated on the door end of the container.
Do you have policies/procedures in place with your suppliers for the correct declaration of containerised cargo weight? If you do not have a VGM document trail, you will be liable if a discrepancy of more than one tonne is detected by on arrival at destination. Please do not hesitate to contact us if we may be of assistance in liaising with exporting shippers on your behalf at the point of origin.
Contact us here at Colless Young if you have any queries regarding shipment of your containers and their weights, whether import or export. We are licensed Customs Brokers and International Freight Forwarders in Brisbane and handle trade, transport and shipping through all Australian ports and airports. Our services cover every aspect of logistics, including clearance of import cargo through customs and quarantine, warehousing and trucking.
