Survey finds fear of new container weight regulations

PARSIPPANY, NJ—A customer survey conducted by INTTRA, an ocean shipping electronic marketplace, showed respondents are concerned about the readiness of the ocean shipping industry and their own companies and customers for the implementation of Safety of Life at Sea (SOLAS) verified gross mass (VGM) regulations.  The regulations stipulate that containers cannot be loaded onto ships until their weight has been verified and certified.

Only 30 percent of respondents said they expected that their company and/or their customers will be prepared for compliance when the regulations are implemented in July 2016; 48 percent said they “have their doubts,” and 10 percent said no.  Two-thirds of respondents, or 66 percent, said they expected either a moderate or major disruption in the industry.

Respondents foresee the most disruption in Asia-Pacific (42 percent), followed by Africa (22 percent).

INTTRA has launched the eVGM Initiative to facilitate a smooth, collaborative transition to industry-wide VGM compliance through digital means.  The initiative is bringing together experts from carriers and NVOCC’s, freight forwarders and shippers, terminal operators and Port Authorities, government regulators, and rail and trucking operators.  To date, more than 100 industry participants are registered in the eVGM Forum, an online discussion group for shipping professionals. Several companies are actively engaged in the Initiative, including APL, BDP International, CEVA, Damco, Hapag Lloyd, Hamburg Sud, Kuehne + Nagel, UASC and other INTTRA carriers.

The eVGM Initiative has two objectives:

1. To state a preference for electronic submission through a “digital-first” approach to SOLAS VGM compliance that allows trading partners ample time for preparations.
2. To support safety and efficiency by developing an industry community to foster agreement or consensus on a technology standard and standard business process for digital documentation of VGM submissions.

Participants in the initiative will not be required to work with any specific vendor to execute their compliance operations.

“Some have said that SOLAS VGM could be to the ocean shipping industry what Y2K was to the broader business world,” said Inna Kuznetsova, president of INTTRA Marketplace. “These survey results are consistent with that, as they reflect concerns over potential disruption and lack of preparedness. We believe that coordinated action can facilitate a smooth transition.  That is the basis of the eVGM Initiative.”

The world’s largest NVOCC, Kuehne + Nagel, expressed concerns that unless global VGM communication standards and practices are adopted quickly, the VGM requirements might create confusion and chaos when implemented in June/July next year.

Otto Schacht, Kuehne + Nagel’s global director of Seafreight operations, is supporting INTTRA’s eVGM efforts by making the company’s resources available to the development of eVGM. “For this system to work efficiently and reliably, shippers, freight intermediaries and ocean carriers have to work on solutions which are practical and in full compliance of the VGM requirements,” Schacht stated.

“BDP International recognizes the need for a more contemporary approach to reporting under SOLAS’ verified gross mass regulation and supports INTTRA’s eVGM initiative,” said BDP vice-president John Clark.  “An e-commerce solution is necessary to minimize the impact of the reporting requirements which otherwise would result in a slow and costly process,” Clark continued.

Damco, a third party logistics provider, endorses the importance of providing safety for every single person working in the supply chain. “In these early stages of translating the new SOLAS amendments into operational processes, Damco chooses to actively collaborate with INTTRA to ensure introduction of one global data format that meets all legal requirements while at the same time minimizing the impact to our customers’ supply chains,” says Simone Kraal, global ocean operations manager.

She adds: “Damco is participating actively in developing an eVGM solution as envisioned by INTTRA, which will provide one global industry standard from shipper to carrier, helping our customers increase the ease of doing business.”

INTTRA welcomes new members of the Initiative and Forum participants.  If interested, please send an email to SolasVGM@inttra.com.