How to Collaborate with Multiple Parties to Collect the VGM Alan Yip CargoSmart Limited

Transcription

1 How to Collaborate with Multiple Parties to Collect the VGM Alan Yip CargoSmart Limited May 12, 2016

2 Agenda Introduction to weighing methods 5 factors to consider for weighing method 3 ways to collect the container tare weight Collaboration with multiple parties Questions and answers CargoSmart, All Rights Reserved 2

3 Poll: Who will submit the VGM? During our previous SOLAS webinar, we polled attendees to find out who would submit the VGM. 40% - Submit the VGM by themselves 38% - Assign forwarders to submit the VGM 22% 40% Submit on their own Assign forwarders to submit No plan yet 22% - No plan yet 38% CargoSmart, All Rights Reserved 3

4 Introduction to Weighing Methods Method 1 According to SOLAS VGM requirements, shippers may obtain the verified gross mass (VGM) of a packed container using two methods*, known as Method 1 and Method 2. Method 1 Upon the conclusion of packing and sealing a container, the shipper may weigh, or have arranged that a third party weighs, the packed container, using calibrated and certified equipment. *US Coast Guard announced two alternative methods on April 28 but it is subject to shippers business agreements with carriers and terminals. CargoSmart, All Rights Reserved 4

5 Introduction to Weighing Methods Method 2 Method 2 Weigh all packages and cargo items, including the mass of pallets, dunnage and other securing material to be packed in the container and adding the tare mass of the container to the sum of the single masses. This method is subject to certification and approval as determined by the competent authority of the State in which the packing and sealing of the container was completed. VGM Cargo Weight Container Tare Weight CargoSmart, All Rights Reserved 5

6 Select Your Weighing Method 1) Cargo Nature According to the SOLAS guidelines, Method 1 should be used for certain types of cargo items (e.g. scrap metal, unbagged grain, and other bulk cargo), that are not easy to weigh individually prior to being packed in the container. Cargo Type Method 1 Method 2 Bulk commodities, liquids, heavy machines Items with irregular weight distrubtions Byproducts sold by piece or volume Homogenous cargo Primary products packed by weight CargoSmart, All Rights Reserved 6

7 2) VGM Cutoff Time in the Shipping Process VGM cutoff times may vary by carrier, country, port, and terminal An earlier VGM cutoff time may affect your selected weighing method Scenario 1 VGM cutoff BEFORE your cargo is loaded into the container Empty Container Pickup VGM Cutoff Cargo Loaded into Container Method 2 Scenario 2 VGM cutoff AFTER cargo is loaded into the container Empty Container Pickup Cargo Loaded into Container VGM Cutoff Method 2 Method 1

8 3) Availability of Weighing Equipment A set of certified weighing jacks costs $1,000 to $15,000. Platform scales or forklift scales range in price from $3,000 - $15,000, depending on their capability. CargoSmart, All Rights Reserved 8

9 4) Availability and Cost of Terminal Weighing Service Port Port Newark Container Terminal Port of Charleston Georgia Ports Authority $69.1 per unit $25 per box Free Port of Baltimore's Ports American Chesapeake terminal Charge with a fee, TBC South Carolina Ports Authority Port of Baltimore's Seagirt Terminal Port Metro Vancouver's Centerm Prince Rupert's Fairview container terminals DP World London Gateway and DP World Southampton Port of Felixstowe *Subject to change. Official updates and information prevail in case of discrepancy. $25 per container Charge for a fee, TBC $245 per container $245 per container Cost for VGM Weighing Service* VGM is provided prior to arrival at the terminal - 1 VGM provision after box arrival but before 24 hour cut-off - 3 Terminal is requested to weigh the container and provide a TVGM with electronic signature Administration charge - 1 weighing service CargoSmart, All Rights Reserved 9

10 5) Registration Fee for VGM Submission Among the 18 countries that have published implementation guidelines, 10 countries require registration for VGM submission, and 4 countries have indicated that a registration fee applies. Americas Europe and Africa Middle East, Asia and Australia Countries/ Regions Argentina Antigua & Barbuda Canada Denmark Finland Germany Ireland Italy United Kingdom South Africa Australia China Hong Kong Japan Israel India Malaysia New Zealand Registration Required? Y Y N N N Y N Y Y Y N N Y Y N Y Y N Registration for which method? Method 2 Method 2 _ Method 2 _ Method 2 Method 2 Method 2 Method 2 Method1 Method2 _ Method 2 Method1 Method2 _ Registration Fee Yes, not specified _ UK 100 R per hour _ Yes, not specified CargoSmart, All Rights Reserved 10

11 Quick Poll Which weighing method do you plan to use? Method 1 Method 2 No idea CargoSmart, All Rights Reserved 11

12 WSC / OCEMA guidelines In accordance with SOLAS guidelines, if using Method 2, shippers may use the container tare weight marked on the container. OCEMA s position on tare weights is consistent with that of the IMO in that a shipper may rely on the tare weight printed on the container when using Method 2 to determine the VGM. CargoSmart, All Rights Reserved 12

13 3 Ways to Collect the Container Tare Weight Check the Weight Marked on the Container Check with your trucker or warehouse to get the tare weight printed on the container. Contact Carrier Customer Service Directly contact your carrier s customer service department to check the container tare weight. Check Carrier Websites Check the container tare weight on each of your carriers websites based on the container size and type. CargoSmart, All Rights Reserved 13

14 CargoSmart Solution - Collect the Tare Weight Carrier A Website Carrier A Container Size: 20' x 8' x 8'6" Weighing Party Tare weight carrier reference link CargoSmart, All Rights Reserved 14

15 Why Collaborate with Multiple Parties? Shippers Carriers Minimize supply chain disruptions and changes to existing processes Facilitate shippers to submit the VGM in a timely manner SOLAS VGM Receive the accurate VGM for stowage planning Avoid port congestion and disruptions to terminal operations 3 rd Parties (e.g. Truckers, Weighing Parties) Terminals CargoSmart, All Rights Reserved 15

16 How to Collaborate with Multiple Parties? To collaborate with multiple parties efficiently for VGM submission, consider the following: Use a Common Platform Collaborating with multiple parties on the same platform can accelerate the communication process and ensure the information is in sync. Gain Visibility to VGM Status Having clearer visibility to the status of each party, from collecting to submitting the VGM, can help you monitor the status in a timely manner and take necessary actions quickly. Access to Flexible Channels Leveraging a platform with flexible channels (e.g. online, EDI, mobile) to work with multiple parties can best adapt to each party s business processes to save time on data interchange. CargoSmart, All Rights Reserved 16

17 CargoSmart Solution - Collaborative Platform CargoSmart provides shippers with a collaborative platform to work with multiple parties to manage the VGM submission. Assign VGM Task Shippers Terminal Assign VGM Task Container Weight VGM (Authorized by Shippers) VGM and Stowage Plan 3rd Parties (e.g. Truckers, Weighing Parties) Carriers CargoSmart, All Rights Reserved 17

18 CargoSmart Solution - Flexible Submission Channels CargoSmart offers flexible submission channels and user interface for shippers to collaborate with multiple parties to manage the VGM submission. Cargo weight and tare weight breakdown for 3 rd party to input separately Mobile channel for 3 rd party to submit the container weight on-the-go Weighing Party Tare weight carrier reference link CargoSmart, All Rights Reserved 18

19 How to Collect the VGM Getting Started Select the weighing method that best fits your business needs and processes Seek the appropriate weighing service and most efficient process to collect the container tare weight Choose a flexible platform to facilitate your collaboration process with multiple parties Work with related parties to establish your VGM process and best practices before July 1 CargoSmart, All Rights Reserved 19

20 Q & A

21 Contact Us Join the SOLAS Group on LinkedIn (SOLAS New VGM Requirement) Contact us at CargoSmart, All Rights Reserved 21

22 Thank You!