Coast Guard Raises Controversy on New Container Weight Rule

What’s happening with this new Verified Gross Mass (VGM) rule?

In some way the reply to that query is getting much less clear because the July 1st rule change regarding VGM attracts close to.

Ripples of shock unfold via the packed crowd, in addition to the panel of consultants, on the Journal of Commerce’s16th annual Trans-Pacific Maritime Convention in Lengthy Seashore, CA on March 1st when panelist Paul Thomas, Rear Adm. of the Coast Guard mentioned the SOLAS pointers on container weight verification going into impact in July will not be obligatory.

A Journal of Commerce article quotes him as follows:

“They don’t seem to be obligatory beneath SOLAS, they don’t seem to be obligatory beneath any U.S. regulation. It says that proper on high — these are non-mandatory pointers.”

“The rules on this case present one path to compliance with the obligatory amendments, however it isn’t the one pathway and the rules themselves will not be a part of the obligatory SOLAS necessities,” he mentioned in an e-mail after the panel.

So far as the Coast Guard was involved, complying with the VGM rule was a enterprise process difficulty. “SOLAS locations no authorized obligation on the shipper. It locations a authorized obligation solely on the vessel topic to SOLAS. So if it’s good to meet that obligation by engaged on a greater enterprise observe along with your companions, that’s the place it’s good to focus,” Thomas mentioned.

That is welcome information to shippers, particularly exporters within the U.S., who have been procedural modifications to get the tare of every container of products they exported or get all these loaded container weighed to supply VGM.

There was a lot fear about how this may decelerate the provision chain and even be impractical for shippers.

However the World Delivery Council is offended about Thomas’ feedback and the Coast Guard’s obvious place on the brand new regulation.

JOC quoted WSC’s response:

“The choice of what’s required will not be a matter for enterprise dialogue, it isn’t a enterprise observe difficulty,” [Christopher Koch, senior advisor and former CEO of the World Shipping Council] mentioned. “The Coast Guard’s place is that SOLAS regulation doesn’t apply to shippers and require them to supply a signed VGM, and terminals will not be required to implement what the SOLAS regulation says.”

Koch known as the Admiral’s feedback a “beautiful revelation,” contemplating the IMO pointers have been submitted by a working group shared by the U.S. Coast Guard, and in a paper co-sponsored by the U.S.

In fact, whereas shippers welcome the concept of not having to alter their enterprise practices, this episode is creating confusion on whether or not or not that must occur.

Within the wake of Thomas’ controversial statements in regards to the new SOLAS regulation, the Coast Guard posted an FAQ web page (from Thomas’ desk) to supply readability on this difficulty.

Right here’s a spotlight on what the Coast Guard says there about shippers’ accountability on this new VGM regulation (I added the bolding):

How do SOLAS necessities apply to U.S. home shippers?

The USCG’s flag state and port state authorities solely lengthen to U.S. and foreign-flagged ships. The USCG has no authority over home shippers. Home shippers could also be impacted by SOLAS necessities as a result of their home and worldwide enterprise companions, who run ships, interpret their obligation to fulfill SOLAS necessities.

Within the case of the SOLAS Regulation VI-2 amendments concerning container weight, some carriers have decided they should change their operational or enterprise practices to fulfill the necessities of their flag states (international and home). As such, home shippers might be known as upon to alter their enterprise practices with these worldwide companions within the world provide chain. It is a business-to-business requirement. For the U.S., the USCG believes that carriers at the moment adjust to SOLAS, and are due to this fact not requiring home shippers to make modifications in present practices.

Correct, correct weight of transport containers should be offered to adjust to SOLAS and forestall future incidents corresponding to lack of life, lack of vessels, and lack of cargo due to misdeclared cargo weight, which has occurred prior to now.

The query is how will U.S. shippers make certain they’re in compliance with this. And are they already?

Count on extra debate on this difficulty to rage on between now and July 1st.

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Supply: UC Weblog