Rous Head Developments and Mandatory Verified Weighing of Export Containers CBFCA Conference - May 2016
ROUS HEAD DEVELOPMENTS 13/05/2016 1
Ex-Qube Tydeman Cnr. Tydeman & Port Beach Roads Nearly 3 ha Successful proponent = ACFS Port Logistics (ACFS/Patrick Port Log.) Container Staging and Warehousing Opposite their existing site on Port Beach Road ex-awh Port Beach Negotiations commencing 13/05/2016 2
Area D Cnr. Noble Close and Port Beach Road 5 ha Empty Container Park (min. 5000 TEU effective working capacity) Container Staging In Development Application stage 13/05/2016 3
Ex AWH Birksgate Road Approx 3 ha Ex-warehouse now demolished Visa Global to use part of site for one year Expressions of Interest 13/05/2016 4
Operating Agreements A series of sites now have new leases which incorporate, within the Operating Agreements, KPIs and Metrics Key indicators include: Truck Turnaround Times (vehicle in vs. vehicle out in given time) - ECP Minimum release of slots - ECP Bulk Runs Off Peak - ECP Availability of Equipment and Systems - ECP No queuing - Both Peak / Off Peak (Staged Containers) - Logistics Percentage on Rail - Logistics Regular monthly reviews Changes only considered following significant consultation and improvement commitments 13/05/2016 5
SOLAS MARINE ORDER 42 CHANGES 13/05/2016 6
Purpose IMO Circular MSC. 1/Circ.1475 Results in amendments to AMSA Marine Order 42 All Export containers will need a verified weigh as of 1July The whole world is implementing this There was discussion that USA may delay their implementation The US Coast Guard immediately quashed this. They will also need to be in line 1 July Different countries are looking at this in different ways: UK has a system to register shippers Others are looking at weighing tolerances 13/05/2016 7
A view of MO42 Let s try and summarise this. This is just my understanding. It s an attempt to keep this simple no jargonese but check it!! This starts 1 July (yes. in a month and a half) Shipper provides a Verified Gross Mass (weight of entire container) in advance of the container being loaded We ve been required to accurately declare gross mass since 1994 A little bit of jargonese Shipper means a legal entity or person named on the bill of lading or sea waybill or equivalent multimodal transport document (e.g. "through" bill of lading) as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a shipping company. 13/05/2016 8
A view of MO42 No jargonese! Two methods of weighing: Method 1 weigh the entire container Method 2 weigh all the contents (yes, everything dunnage, etc.) and add the tare of the container (yes, if the container has a CSC plate, the tare is written on the side) The weights, whether using method 1 or 2, must be obtained using calibrated and certified equipment (yes, that means the dunnage/pallets/strapping, etc. as well) We should keep records no one is going to say how, but should an investigation come about, we should show how we arrived at the weight 13/05/2016 9 Source: OOCL
A view of MO42 Declaring a weight! Once a shipper has verified the weight of the container (using one of the two methods) this weight must then be specified on the shipping documents and signed by the shipper or a person duly authorised by the shipper. It can be an electronic signature or the name of the authorised person. 13/05/2016 10
A view of MO42 When it comes to declaring VGMs in time, we are actually really lucky here in Australia In WA, in particular, you have to use 1-stop to get a booking for your export container at a container terminal The booking system, 1-stop VBS, has, as part of it, a PRA (Pre-receival Advice) PRA, regardless of how developed, will now states that the weight entered is a VGM in the terminal system (through 1-stop) Therefore, when you or your customer enter the weight into the PRA and lodge it, you have declared your VGM you don t have to do it again! However, if the weight is changed, you will need to redo the PRA Be careful, if the weight is changed after the container has entered the terminal, they will reject it (DPW) and it will need to be picked up! 13/05/2016 11
A view of MO42 Tolerances AMSA are saying that percentages (e.g. such as the +/- 5% used by France) lead to significant variances, particularly as the weights get higher They have gone for Maximum number of increments of error permitted 13/05/2016 12
A view of MO42 Tolerances OK, in layman s terms. and this is really going to be a real Cook s tour It depends on the type of equipment you are using (a forklift is within R51) Take the example of a forklift (R51): - The display on your forklift weighs in increments of 20kg - For the first 50 increments (i.e. 1000 kg = 50 x 20) you re allowed 2 x the increment of error (i.e. 40 kg = 2 x 20). - From 51 200 (i.e. between 1001kg and 4000kg), it s 3 increments (i.e. 60kg = 3 x 20) - From 201 500 (i.e. between 4001kg and 10000 kg), it s 4 increments (i.e. 80kg = 4 x 20), etc. Using this example, if you re weighing a 2 tonne pallet with your forklift with 20 kg increments and your fork was out by 50kg, that is ok. If it were out 100kg, it is not acceptable and needs to be recalibrated 13/05/2016 13
A view of MO42 Again, this is just my understanding check it! Certified and calibrated weighing equipment AMSA is not going to specify who can certify the calibration A rough guide is that if they can show they have gone through an NMI (National Measurements Institute) course, they are authorised to do the calibration There are different types of equipment standards, though Ask them to show they are authorised to calibrate your equipment ( suitable licensee ) If you want to be lazy, NMI have a list of those they consider to be authorised http://www.measurement.gov.au/trademeasurement/licensees/documents/sllist.xls Example of a Trade Scale Label Example of a Compliance Label 13/05/2016 14
A view of MO42 Tolerances (continued) What was discussed on the previous page is just an example of where AMSA is coming from AMSA has said that they may allow other methods, if they can be shown to have tolerable accuracy levels (e.g. possibly bag flow rate mechanisms) CHECK THIS 13/05/2016 15
A view of MO42 You need to determine if your customer is the Shipper? If yes what is the accuracy of the equipment they use, or intend to use, for obtaining and declaring the VGM. If no - do they currently provide a gross mass to a container consolidator (directly or indirectly, by way of contractual or other agreements/documentation)? If they do, what is the accuracy of the equipment they use, or intend to use, for obtaining and providing the VGM. Remember Shipper means a legal entity or person named on the bill of lading or sea waybill or equivalent multimodal transport document (e.g. "through" bill of lading) as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a shipping company. 13/05/2016 16
SURVEYS 13/05/2016 17
Transport Operator Survey Summary Most transport operators are not involved in container packing Of those that do, possibly up to half may have methods that cannot calibrated to the appropriate standards There may still be some lack of clarity among those that pack containers as to what is an acceptable form of calibrated weigh 13/05/2016 18
Pre-seminar Export Survey Summary Nearly a quarter of survey respondents ( Exporters?) (24%) believe they are not the Shipper They were virtually all freight forwarders Two thirds weigh the whole container (Method 1) and all use a certified weighbridge Of concern are those who assessed the weight of the containers (Method 2) using volumetric measures, historical estimates or calibrated (whatever that may be) but not certified means (see next page) Accuracy levels of the weighing methods ranged (0.002 to +/- 7%) Most gave percentages of accuracy, rather than units of error (comprehension issue?) 13/05/2016 19
Pre-seminar Export Survey Summary (Continued) For those who do not weigh the entire container, there were a variety of answers, which causes some concern. These included: A number sample the weights from suppliers (e.g.: gross weight is calculated by us based on.75 x the number of cartons plus the nett weight) Product is weighed into a hopper and bag catch weights are confirmed electronically by weigh cells (is this acceptable?) Bag count Weight tickets where required and or base on 110 kilos per cbm 90% of our shipments are bagged goods - we calculate container weight on number of bags loaded. Shippers documents These are your customers are you sure they are complying? 13/05/2016 20
AMSA Submission Following the successful March 2016 MO42 Seminar held at CCIWA, the Loadsafe Working Group, chaired by John Park (CBFCA) completed a submission to AMSA It highlighted the following: AMSA must provide clear, simple guidelines and an Industry Hotline to allow industry to: Recognise correct and unacceptable weighing methods Record weighs where there is no print out Conform to acceptable recordkeeping of weighs (evidence in case of investigations) Be clear on how to use weights printed on pack units Clarity on the definition of a Shipper Transport operators packing on behalf of exporters Exporters packing on behalf of overseas consignor clients How best to obtain calibration and certification of equipment Weighbridge weighs Practical inclusion of tare vehicle weights How are they going to ensure compliance if no one checks? 13/05/2016 21
Industry Guide The Port Operations Task Force Loadsafe Working Group is also utilising industry information to produce an indicative Guide and Customer Preparation Process for West Australian operators Guide Should be available shortly In the meantime, it is suggested delegates refer to examples such as the APL Handbook http://www.apl.com/wps/portal/apl/global-security/solas 13/05/2016 22
Industry Guide Customer Preparation Process Gives delegates key points about the MO42 changes to discuss with their clients Key elements include: Make a time to visit your client Go through the changes to the Marine Order 42 and the need to verify all export containers with them (e.g. utilise the first few slides of this presentation?) Talk about the methods of weighing (Method 1 & 2) Discuss the need to use a weighing device that is calibrated and certified Remind them that they need to have a means of recording the weights Reassure them that the weight provided in the PRA will be determined to be a VGM Obtain authority from them for your company to declare a VGM on their behalf (if applicable) 13/05/2016 23
IMPORTER WORKING GROUP 13/05/2016 24
Importer Working Group Importer Working Group regularly meets to engage Brokers and Forwarders One-on-one sessions with you and your import clients Site tours of port precinct, major facilities, and importer premises Guide for Importers Importer News Peak Season Case Studies Trade Updates, etc. You are critical to dispersing the message. What s important to you and your clients 13/05/2016 25