Transnet IMO, SOLAS VGM Workshop

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1 Transnet IMO, SOLAS VGM Workshop 3 rd June 2016 Fruit South Africa Implementation Case Study Mitchell Brooke

2 So why the need to verify the gross mass of packed containers? Here s why! Example of fruit masses Unverified masses of fruit cartons were obtained from ancient generic samples taken. Times have changed, market demands have changed, fruit conditions and packing conditions have changed thus masses of cartons have changed Current generic gross container mass packed with typical 15kg carton of Valencias Ave generic gross mass 15.8kg s per carton x 80 ctn/pallet = 1,264kg s per pallet x 20 pallets per container = 25,280 kg s gross mass booked + 4,500 kg s for container tare mass = 29, 780 kg s. Actual average VGM container mass packed with typical 15kg carton of Valencias average actual mass 18.5kg s per carton x 80 ctn/pallet = 1,480kg s per pallet x 20 pallets = 29,600kg s kg s for 20 pallet bases = 30,000kg s + 4,650kg s tare mass of reefer container = 34, 650kg s VGM. A differential of 4, 870kg s

3 If a container ship loads 6,000 TEU containers from the SA ports (e.g. SAECS) and all containers are under declared by just 2,000 kg s, the sum total of all the containers under declared will be 12, 000 tons. At an average of 20 tons per TEU, This equates to 600 TEU equivalent containers just not there and no way to know where the masses are displaced on the ship. IT S A NO BRAINER! JUST GET GOING WITH VGM

4 In considering the various aspects concerning the requirement by the International Maritime Organization (IMO), Safety of Life at Sea (SOLAS) convention to verify the gross masses of packed containers for export, a three part set of guidelines has been published to assist the fruit industry in determining best practice to comply with the requirements; where compliance is applicable. There are three main areas which have been identified in considering this requirement 1. Implementation Guidelines to obtain the Verified Gross Mass (VGM) of Containers in terms of the IMO Requirements, 2. Implementation Guidelines to Notify Shipping Lines the Declaration of Verified Gross Mass (VGM) of Containers, and 3. Implementation Guidelines to Verify the Container Gross Mass through the SAMSA Appointed Third Party Certification and Approval Process under Method 2.

5 1. Implementation Guidelines to obtain the Verified Gross Mass (VGM) of Containers in terms of the IMO Requirements 2 Methods to Obtain the VGM of Containers Method 1: 1. Weigh the packed container independent of the transport mode. 2. Weigh empty container on truck prior to packing, weigh packed and sealed container after packing and add the tare mass of the container to obtain the VGM. Method 2: 1. Weigh all cargo and dunnage to determine gross cargo mass and add the tare mass of the container to obtain the VGM.

6 1. Implementation Guidelines to obtain the Verified Gross Mass (VGM) of Containers in terms of the IMO Requirements Method 2 fruit industry implementation: Compliant floor scales to weigh individual pallets of fruit after packing. Record all pallet masses electronically on to IT systems. Pallet masses are transferred electronically to pack station IT systems and shippers IT systems. Pack stations and shippers can determine gross cargo mass of the packed container using the pallet masses. 2% VGM tolerance is there for fruit mass loss.

7 2. Implementation Guidelines to Notify Shipping Lines the Declaration of Verified Gross Mass (VGM) of Containers Most container lines will accept the NAVIS pre-advise as the VGM declaration. Lines may call for verified declaration to be submitted with SI. VGM Pre-advise will need verified gross mass of the container and nothing else. Method 1 = VGM, Method 2 = gross cargo mass + tare mass of container as indicated on container door. Shippers must ensure nominated party submitting the pre-advise can obtain the verified mass and knows which method has been used to determine the VGM and obtains method 2 shippers certification number and signatory. Have the mates receipt / packing list include the VGM for traceability. Shippers should include VGM method and required detail on the Q67 booking form. Shippers are advised to include a form of disclaimer on the SI iro the declared VGM.

8 3. Implementation Guidelines to Verify the Container Gross Mass through the SAMSA Appointed Third Party Certification and Approval Process under Method 2. VGM Method 2 will be required to be certified by a SAMSA appointed agency. Shippers will be audited and this will include an audit at the weigh point to verify weighing accuracy and compliance criteria. SAMSA appointed agencies will guide shippers on the requirements. FSA Guideline will include detail iro the compliance criteria and will annex templates as examples of procedural criteria. Shippers and/or shipping agents must ensure weigh points are aware of the requirement and compliance criteria. Shippers have to notify the SAMSA agency to audit weigh points. Shippers will receive certification number on completion of successful audit. Don t take chances make sure all weigh points are SAMSA accredited! Shippers are advised to keep records of all weigh points compliance criteria for audit traceability. SAMSA will audit shippers and if found non compliant will be delisted!

9 IF SHIPPERS ARE GOING TO OBTAIN VGM USING METHOD 2 AND ARE NOT CERTIFIED BY 27 TH JUNE THEN WILL BE REQUIRED TO OBTAIN VGM USING METHOD 1 IN THE INTERIM UNTIL CERTIFICATION IS OBTAINED. PLEASE DON T TAKE CHANCES! Thank You