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1 Question and Answers Supporting Client Advisory Contents Question and Answers... 1 Supporting Client Advisory Industry Regulations General... 4 Why do containers need to have a Verified Gross Mass (VGM)?... 4 When will the new IMO container weight regulations apply?... 4 What is SOLAS?... 4 What is the IMO?... 4 Are all countries bound to comply with the IMO SOLAS regulations?... 4 What is a Verified Gross Mass?... 5 How can the Verified Gross Mass be obtained?... 5 How can we be sure that the VGM is correct?... 5 Who needs to provide Verified Gross Mass information?... 5 Will the implementation of the IMO container weight regulations be delayed?... 6 What is the tolerance level for the VGM?... 6 The requirement is for accurate gross mass; is there a margin of error defined for this accuracy?... 6 What happens if two different calculated weights are recorded for the same export container?... 7 Simply knowing the verified gross mass is not sufficient to achieve safety through the supply chain, since many incidents on the road and rail are caused by improper load distribution and inadequate securing. What can be done about that? Local implementation of the regulation... 8 What is my country s legislation on VGM?... 8 How will this be enforced and what will be the level of penalties imposed by an authorities if a container is delivered by a shipper to a shipping line with a misdeclared gross mass or if a shipper does not provide the verified gross mass for a packed container?... 8 How can terminals become a certified weighing station?... 8 What is an Equipment Certification Authority?... 8 If the verified gross mass declared for SOLAS purposes subsequently is amended, for example after actual weighing of the packed container, does customs need to be informed? Export Shipping Process

2 Can the current gross weight be used for declaration as VGM?... 9 Can the VGM be calculated with the known mass of packages and the container tare weight?... 9 What if the Tare weight appearing on containers is lacking or inaccurate due to wear & tear, etc.? What remedy is available?... 9 Where can the VGM be physically obtained?... 9 Can the shipper use a public weighbridge to weigh the container?... 9 If the shipper elects to certify the VGM outside of the terminal, how should this information be transmitted into the terminal? What happens if I have more than one container on the road vehicle coming to the container terminal (i.e. twin container)? Who is responsible to provide the terminal operator with the VGM for an export container? What is the implication of not complying with the IMOs VGM requirements? Will the VGM always be electronic? Is there an agreed format to communicate verified gross mass? Is there a deadline for when the information must be received by the shipping line and the terminal operator? How long will evidence of the VGM need to be kept? Our company only ever provides part loads/less than container load (LCL), never a full container load (FCL) so what is our position? Are there some commodities which imply specifics for the generation of the VGM?. 12 What happens if the container is packed in a landlocked country not party to the IMO convention? Container Terminal Operations Can Inland Services provide VGM service? Can the containers be loaded into the vessel without VGM? Do Transhipment containers need to have a VGM? Will Import containers need a VGM? Should the containers be weighed at the gate? Will APM TERMINALS reject containers without VGM at gate, or can they enter the terminal? How can VGM be determined for containers stuffed inside gate? Some weighbridges do not produce tickets, would a weight being written on driver s consignment note, signed and stamped by the load point be acceptable? EDI Which EDI messages do we need to cater for VGM? Will APM TERMINALS use EDI message VERMAS? / 19 May 2016

3 6. APM Terminals Service Level Overview: Level 1 Legal compliance What services are included? Does a declared VGM need to be verified? How can Terminals be confident the containers carry a VGM and that this is correct without physically verifying the weight? APM Terminals Service Level Overview: Level 2 VGM Data Management What services are included in the VGM Data management service outlined by APM Terminals? How will the VGM be communicated by the Customer to the Terminal? APM Terminals Service Level Overview: Level 3 VGM Verification What services are included in the Verification service outlined by APM Terminals?.. 18 If Terminal offers VGM Verification, what does that mean? What deviation will be allowed between the declared VGM and verified VGM at the terminal? What happens if the VGM declared to Terminal is not in line with that verified by Terminal? APM Terminals Service Level Overview: Level 4 VGM Generation What services are included in the VGM Generation Service outlined by APM Terminals? Will this service slow down container operations? / 19 May 2016

4 1. Industry Regulations General Why do containers need to have a Verified Gross Mass (VGM)? APM Terminals Lifting Global Trade to new safety standards. Over 135 million containers each year are estimated to enter the global supply chain, and a proportion of these have inaccurate weigh estimates. Inaccurate weights are often the cause, or contributory factor to numerous serious accidents, some unfortunately fatal, in the global supply chain. As of July 1st, 2016, the enforcement of the Safety of Life at Sea Convention (SOLAS) requirements regarding the verification of the gross mass of packed containers will be applicable. Further information can be found on the World Shipping Council s SOLAS guidelines. When will the new IMO container weight regulations apply? For all CSC (Container Safety Convention) plated export containers loaded onto ships from 1 st July, What is SOLAS? The International Convention for the Safety of Life at Sea (SOLAS) is an international maritime safety treaty. It ensures that ships flagged by signatory States comply with minimum safety standards in construction, equipment and operation. The SOLAS Convention in its successive forms is generally regarded as the most important of all international treaties concerning the safety of merchant ships. What is the IMO? The International Maritime Organization was formed to fulfill a desire to bring the regulation of the safety of shipping into an international framework. IMO is the source of approximately 60 legal instruments that guide the regulatory development of its member states to improve safety at sea, facilitate trade among seafaring states and protect the maritime environment. Are all countries bound to comply with the IMO SOLAS regulations? As of 2014, there are 171 member states of the IMO, which includes 170 of the UN members and the Cook Islands and covers approximately 98% of the world container traffic. 4 / 19 May 2016

5 UN member states that are not members of IMO are generally landlocked countries, including: Afghanistan, Andorra, Armenia, Belarus, Bhutan, Botswana, Burkina Faso, Burundi, Central African Republic, Chad, Kyrgyzstan, Laos, Lesotho, Liechtenstein, Mali, Federated States of Micronesia, Nauru, Niger, Rwanda, South Sudan, Swaziland, Tajikistan, and Uzbekistan. All member states need to comply with the IMO SOLAS regulations. What is a Verified Gross Mass? Verified gross mass means the total gross mass of a packed container. It includes the weight of the cargo, packaging and the container itself. How can the Verified Gross Mass be obtained? The VGM can be obtained by 2 methods: 1. Following packing and sealing, the shipper may weigh, or have arranged that a third party weighs, the packed and sealed container 2. The shipper (or, by arrangement of the shipper, a third party), may weigh all packages and cargo items, including the mass of pallets, dunnage and other packing and securing material to be packed in the container, and add the tare mass of the container to the sum of the single masses using a certified method. How can we be sure that the VGM is correct? For containers that VGM has to be determined by weighing per method 1 above, certified and calibrated equipment will need to be used. If the VGM is obtained by method 2 the process 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. Who needs to provide Verified Gross Mass information? The responsibility for obtaining and documenting the verified gross mass of a packed container lies with the shipper. A shipper is identified as the shipper on the Bill of Lading. This means that the shipper is not necessarily the exporter. 5 / 19 May 2016

6 As an example, a freight forwarder having issued a house bill of lading would be considered as the shipper. An importer in the US can, for the same reason, be responsible for providing the VGM of containers from China. Will the implementation of the IMO container weight regulations be delayed? At this time the IMO has made clear that 1 st July 2016 will be the date from which on the container weight regulation will apply. IMO is currently increasing the supervision of the implementation of its regulations by its member states aiming at the protection of safety integrity within the global supply chain. Above deadline was re-confirmed during last two ICHCA conferences in London in 2015 and in Barcelona in What is the tolerance level for the VGM? IMO regulation does not detail an actual tolerance level. It states though that the weighing machinery should meet the applicable accuracy standards and requirements of the local authorities in which the equipment is being used. At local level, there is a requirement to work with the authorities to find out what the actual tolerance levels are for the country. The requirement is for accurate gross mass; is there a margin of error defined for this accuracy? The SOLAS regulations provide that verified gross mass shall be obtained ( ) using weighing equipment that meets the applicable accuracy standards and requirements in the State in which the equipment is being used. Those national standards and requirements will determine the acceptable level of accuracy of the weighing equipment used. There is no provision in SOLAS for any margin of error; this is a physical weighing requirement, not a system of estimation. Gross mass derived using compliant equipment and procedures will meet the legal requirements. There is no single international weighing equipment accuracy standard at present although the International Organization of Legal Metrology has issued recommendations for various types of weighing equipment. For example, EU Directive 2004/22/EC on measuring instruments provides guidance within the European Union in relation to automatic weighing instruments. Similar guidance exists for non-automatic weighing instruments and many countries and regions will have enacted legislation and standards to cover such equipment. Accuracy refers to the precision with which a measurement (in this case mass) is made. Accuracy is the only concept with which the shipper need be concerned. National enforcement agents may exercise discretion or tolerance in deciding when to initiate 6 / 19 May 2016

7 further investigations or penalty action. However, shippers using compliant weighing devices and processes will obtain values that are well within any tolerances adopted nationally for enforcement purposes. Shippers not using compliant weighing devices and processes may be found in violation even if the gross masses that they provide fall within government enforcement tolerances. If a shipper is merely estimating the gross mass and hoping to fall within government enforcement tolerances, it is violating the SOLAS requirements and could incur sanctions or delays pursuant to applicable national legislation. There are no exemptions from the requirement to weigh using either Method 1 or Method 2 Source of this question and answer What happens if two different calculated weights are recorded for the same export container? Any verified gross mass obtained by port terminal facilities, in line with the container weighing regulation and its local implementation, should be stored independently, and not overwrite any other weighing recorded externally which has been sent to the port facilities. This action will be useful as an input to the billing process, if applicable. Simply knowing the verified gross mass is not sufficient to achieve safety through the supply chain, since many incidents on the road and rail are caused by improper load distribution and inadequate securing. What can be done about that? It is correct that improper load distribution and inadequate securing in packed containers may result in incidents even where the gross mass has been correctly obtained and declared. The IMO, ILO and UNECE collaborated to produce the Code of Practice for Packing Cargo Transport Units (CTU Code) to address such concerns. This nonmandatory international code provides recommended and actionable guidance for the proper packing, securing and handling of cargo into or onto CTUs. The Code, which applies to surface transport operations throughout the intermodal supply chain, is available to download in various languages through the searchable website Source of this question and answer 7 / 19 May 2016

8 2. Local implementation of the regulation What is my country s legislation on VGM? Each country has different local authorities responsible for VGM. Regional implementation information can be viewed at here. How will this be enforced and what will be the level of penalties imposed by an authorities if a container is delivered by a shipper to a shipping line with a misdeclared gross mass or if a shipper does not provide the verified gross mass for a packed container? Fines and other penalties will be imposed under national legislation. Enforcement agencies may implement measures to satisfy themselves that compliance is achieved, which might be expected to include documentation checks, auditing or random weighing. The penalties may involve repacking costs, administration fees for amending documents, demurrage charges, delayed or cancelled shipments etc. It should be noted that SOLAS imposes an obligation not to load a packed container aboard ship for which no verified gross mass has been provided or obtained. (Note: The new SOLAS requirements apply equally to both under and overweight containers.) Source of this question and answer How can terminals become a certified weighing station? Each terminal needs to get in contact with the relevant national authority to have the weighing equipment and process certified, as this varies between countries. What is an Equipment Certification Authority? To comply with IMO regulations, a weighing system must be certified. We refer to equipment certification authority as those companies have the permission to certify your weighing systems. Please see the following link for a list of certification authorities. If the verified gross mass declared for SOLAS purposes subsequently is amended, for example after actual weighing of the packed container, does customs need to be informed? SOLAS does not regulate Customs matters. Provision of the verified gross mass of a container in declarations to Customs is regulated according to national Customs legislation. Source of this question and answer 8 / 19 May 2016

9 3. Export Shipping Process Can the current gross weight be used for declaration as VGM? No. The current gross weight which is submitted as part of the shipping instructions usually refers to the cargo gross weight. The VGM for the export container needs to include the gross cargo weight, the weight of any packaging and the tare weight of the container. Can the VGM be calculated with the known mass of packages and the container tare weight? Yes. This is known as method 2 calculation. However a method 2 calculation requires application of a process certified and approved in line with the requirements set by the competent authorities of the state in which the packing and sealing of the container was completed. What if the Tare weight appearing on containers is lacking or inaccurate due to wear & tear, etc.? What remedy is available? The tare weight of containers is generally marked at the time of manufacture. Where it is missing, or believed or established to be inaccurate, the container operator should be contacted for a replacement unit and to take appropriate remedial action Source of this question and answer Where can the VGM be physically obtained? Anywhere in the supply chain where a certified weighing system could be found. It is important that the VGM information is shared with the shipping line and the terminal operator in time for the stowage planning. Can the shipper use a public weighbridge to weigh the container? Yes, if the location is certified by the appropriate authority. If the verified gross mass of a packed container is obtained by weighing the container while it is on a road vehicle, (e.g. chassis or trailer), the tare mass of the road vehicle and, where applicable, the tractor, should be subtracted to obtain the verified gross mass of the packed container. Beware that the mass of any fuel in the tank of the tractor should also be subtracted. 9 / 19 May 2016

10 If the shipper elects to certify the VGM outside of the terminal, how should this information be transmitted into the terminal? The preferred option: VGM data is sent to the shipping line and then transferred to Terminal digitally using EDI. There are other ways the shipper could pass the information, but manual input should be avoided where possible. What happens if I have more than one container on the road vehicle coming to the container terminal (i.e. twin container)? If two packed containers on a road vehicle are to be weighed, their gross mass should be determined by weighing each container separately. Simply dividing the total gross mass of the two containers by two after subtracting the mass of the road vehicle and the tractor, where applicable, would not produce an accurate verified gross mass for each container. Who is responsible to provide the terminal operator with the VGM for an export container? Because the contract of carriage is between the shipper and the shipping line, not between the shipper and the port terminal facility, the shipper may meet its obligation under the SOLAS regulations by submitting the verified gross mass to the shipping line. It is then the responsibility of the shipping line to provide information regarding the verified gross mass of the packed container to the terminal representative in advance of ship loading. Similarly, the shipper may also submit the verified gross mass to the port terminal facility representative upon delivery of the container to the port facility in advance of loading. It is recommended to produce reports to the shipping lines in case of changes in the container weight. What is the implication of not complying with the IMOs VGM requirements? Whether there will be additional penalties or fines imposed on the shipper is subject to implementation and enforcement of the IMO regulation by the local authorities. Will the VGM always be electronic? No, although it is preferred to be electronic. It is possible that the VGM may be a hard copy. It will be necessary for the shipper to retain the VGM certificate for a period of time depending on the implementation by the local authority. Is there an agreed format to communicate verified gross mass? ( ) SOLAS does not mandate any particular form of communication between the parties exchanging the verified gross mass information. Subject to any additional national requirements, the information to be provided by the shipper is the same under Method 1 10 / 19 May 2016

11 and Method 2, being the verified gross mass of the packed container, conspicuously identified as such, signed by the shipper or a person duly authorised by the shipper. The information and signature may be transmitted electronically, and the signature may consist of the last name of the responsible person in capital letters. Several existing EDI messages have been amended by SMDG (Ship-planning Message Design Group) and a new EDI message VERMAS specifically in relation to verified gross mass has been developed. Further information is available from SMDG ( In parallel to the SMDG efforts, the US organization responsible for the ANSI X12 messages has announced that a new code is available to capture verified container weight information. The new code will be published with the next release of the ANSI X12 standard, but trading partners may agree to use the code in earlier versions of the standard (for example, version 4010). The form of exchange and precise substance should be agreed between the commercial parties. Source of this question and answer Is there a deadline for when the information must be received by the shipping line and the terminal operator? Verified gross mass is required in order to prepare the stowage plan of the ship prior to loading. Deadlines will differ according to a number of factors; shippers should obtain information on documentary cut-off times from their shipping lines in advance of shipment. It is recognised that just in time shipments will need specific coordination between the shipper and shipping line to ensure that the objectives of SOLAS are met and the verified gross mass for such shipments is communicated and used in the ship stowage plan. Source of this question and answer How long will evidence of the VGM need to be kept? It can vary per country. It is likely to be a number of years. Our company only ever provides part loads/less than container load (LCL), never a full container load (FCL) so what is our position? This will depend on your contractual arrangement with the co-loading freight forwarder that enters into the contract of carriage with the shipping line and thus becomes the shipper to the shipping line. If permitted under the terms of the contract with the master forwarder, your company may use Method 2 to verify the actual mass of the goods being shipped and pass that information on to the party completing the packing of the container. However, responsibility for providing the accurate, verified gross mass of a co-loaded container remains with the shipper named on the bill of lading, i.e. the master freight forwarder. Source of this question and answer 11 / 19 May 2016

12 Are there some commodities which imply specifics for the generation of the VGM? Certain types of cargo items (e.g. scrap metal, bulk grain and other bulk cargo) do not easily lend themselves to individual weighing of the items to be packed in the container. In such cases, usage of method 2 would be inappropriate and impractical, and method No.1 should be used instead. What happens if the container is packed in a landlocked country not party to the IMO convention? Terminals in this situation will need to follow the same procedures as if they were the first exporters of that container. 12 / 19 May 2016

13 4. Container Terminal Operations Can Inland Services provide VGM service? Shipping lines may consider using inland facilities as a preferred option to weigh the containers before reaching the terminal gate. Can the containers be loaded into the vessel without VGM? According to the regulations, no containers shall be loaded without VGM. The ultimate responsibility to provide the VGM lies with the shipper. If the terminal operator is aware that the VGM is missing the shipping line must be informed. Do Transhipment containers need to have a VGM? Section 12.2 of the SOLAS guidelines answers this question: If a packed container is delivered to a port terminal facility by a ship to which the SOLAS regulations apply for transhipment onto a ship to which the SOLAS regulations also apply, each container being delivered is required by the SOLAS regulations to have had a verified gross mass before loading onto the delivering ship. All packed containers discharged in the transhipment port should therefore already have a verified gross mass and further weighing in the transhipment port facility is not required. The delivering ship should inform the port terminal facility in the transhipment port of the verified gross mass of each delivered packed container. The master of the ship onto which the transhipped, packed containers are to be loaded and the port terminal facility in the transhipment port may rely on the information provided by the delivering vessel. Will Import containers need a VGM? No. IMO regulation only refers to the export containers. Should the containers be weighed at the gate? Containers can be weighed anywhere in the terminal prior to final lift on to the vessel. Will APM TERMINALS reject containers without VGM at gate, or can they enter the terminal? Accepting / rejecting containers at the gate depend on terminal s operational situation (yard utilization, storage capabilities, etc.) 13 / 19 May 2016

14 How can VGM be determined for containers stuffed inside gate? It is recommended that terminal operators use Method 1 (weighing of loaded container) rather than Method 2 (weighed goods and packaging summarised with container tare weight), which makes the terminal operator dependent on weighing information provided by shippers. Some weighbridges do not produce tickets, would a weight being written on driver s consignment note, signed and stamped by the load point be acceptable? There is no requirement under SOLAS that a weight ticket or similar must be provided. What SOLAS requires is that the shipper communicates the verified gross mass in a shipping document that can be part of the shipping instructions or be a separate communication. In either case, the document should clearly highlight that the gross mass provided is the verified gross mass, and the document must be signed by a person duly authorised by the shipper (the signature may be an electronic signature or may be replaced by the name in capitals of the person authorised to sign it). National governments may, as part of their enforcement policies, require that shippers using Method 1 are in a position, upon request, to produce weigh tickets or other documentation as deemed acceptable pursuant to national rules and regulations. Source of this question and answer 14 / 19 May 2016

15 5. EDI Which EDI messages do we need to cater for VGM? This is different per EDI counterpart (different shipping lines have different expectations) - for EDIFACT messages, guidelines can be found on via LINK1 and LINK2 - for ANSI messages, data element 187 has been added code value A6 (definition: SOLAS Verified Container Weight) Will APM TERMINALS use EDI message VERMAS? Data management should be impacted as little as possible by VGM implementation. Existing messages guidelines have been changed to cater for VGM, so if operational processes do not change, preference is to cater for VGM in current EDI messages. Where processes change (if terminals starts providing VGM weighing services, if terminal is expected to distribute VGM on different times than current information exchange, etc.) VERMAS can be considered as option to cater for this. 15 / 19 May 2016

16 6. APM Terminals Service Level Overview: Level 1 Legal compliance What services are included? There are no new services included. Terminals set forth in its terms of business and other contracts with customers that the customer guarantees that the containers nominated for export carry a VGM in line with the applicable law. Does a declared VGM need to be verified? Only the shipper needs to verify the VGM. Terminals have no obligation to verify the weight resulting from the IMO regulation. This does not free Terminal though from its obligations as a diligent terminal service provider to raise questions and take appropriate actions in case serious doubts as to whether safe handling can be ensured exist. Therefore, when, in Terminal s sole discretion, there are any circumstances which will or may prevent or hinder the safe handling, storage, loading, unloading or transport of any containers, Terminal may, in its sole discretion, refuse to handle the same and shall give notice of such refusal to the customer or its agent. How can Terminals be confident the containers carry a VGM and that this is correct without physically verifying the weight? They cannot. The only way of gaining confidence is to offer Level 3 VGM Verification or Level 4 VGM Generation service. 16 / 19 May 2016

17 7. APM Terminals Service Level Overview: Level 2 VGM Data Management What services are included in the VGM Data management service outlined by APM Terminals? Services include receiving and managing data sent by customers using a new EDI interface built to cover these new regulatory requirements. How will the VGM be communicated by the Customer to the Terminal? The process to send EDI to Terminals will not change. The EDI messaging and the Terminal Operating System functionality may change. At this level, customers must ensure that they provide the VGM to the terminal using EDI communication. 17 / 19 May 2016

18 8. APM Terminals Service Level Overview: Level 3 VGM Verification What services are included in the Verification service outlined by APM Terminals? Services include EDI data management and capabilities to weight customer s container. For safety reasons, terminals offering this service will weight all export containers to verify that the weigh is within tolerance levels. If Terminal offers VGM Verification, what does that mean? Terminal will verify the weight of all containers that enter the Terminal, either by road, gate or barge, only if Terminal has weighing capabilities. What deviation will be allowed between the declared VGM and verified VGM at the terminal? The level of tolerance depends on how local authorities in each location interprets and adopts the IMO regulation. What happens if the VGM declared to Terminal is not in line with that verified by Terminal? IMO regulation states that terminals generated VGM will supersede previous information. The process to update VGM will be subject to contractual agreements with shipping lines that stipulate that in cases of significant deviations in VGM, Terminal will update the attribute of the container with the new weight. 18 / 19 May 2016

19 9. APM Terminals Service Level Overview: Level 4 VGM Generation What services are included in the VGM Generation Service outlined by APM Terminals? This service includes EDI data management and capabilities to weight customer s container. VGM can be generated at the terminal and communicated to shipping line or other relevant stakeholder. Will this service slow down container operations? The aim is always to provide a service without disrupting the current flow of containers or adding any additional waiting time into the process. Further information can be found on the World Shipping Council s SOLAS guidelines. 19 / 19 May 2016

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