Brian Limperopulos IAM Director of Programs Industry Compliance Issues in 2016
Worldwide Container Weight Verification U.S. Federal Maritime Commission (FMC) Regulations IAM Annual Meeting Agenda
Changes to the Safety of Life at Sea (SOLAS) Treaty by the International Maritime Organization (IMO) effective July 1 st, 2016 Goal of this change: Lessen the number of accidents caused by incorrectly weighed and mis-declared container weights SOLAS Changes for Weight Verification
Compliance is Shippers’ Responsibility Who is the Shipper? – The person who enters into the contract of carriage with the ship owner, and whose name appears on the bill of lading or the transport document. (meaning not the ship owner) The transport document must: contain the verified gross mass (VGM) be signed by a person authorized by the shipper be submitted to the shipping line sufficiently in advance “In Advance” has to be determined locally
How Will It Be Done? World Shipping Council (WSC): “The master or his representative and the terminal representative [must] have obtained, in advance of vessel loading, the verified actual gross mass of the container or the container will not be loaded.”
Source: Journal of Commerce
When To Provide VGM? The provisions in the updated SOLAS state that the shipping document must be submitted to the terminal representative “in advance” In Advance may be different at each port! Shippers will need to obtain information on documentary cut-off times from their carriers in advance of shipment. Shipping line needs VGM to provide the master so it has time to plan the stowage and communicate the details to the terminal
Enforcement and Penalties National Level Fines and other penalties may be imposed under specific national legislation or regulation. Many countries have not issued guidance though. Enforcement agencies may implement measures to ensure compliance, which could include documentation checks, auditing, or random weighing Commercial Level Penalties may involve: reweighing costs administration fees for amending documents demurrage charges delayed or cancelled shipments
International Response At this time, the US Coast Guard does not intend to engage in rulemaking procedures to enforce any action on a shipper. UK enforcement body, the Maritime & Coastguard Agency, has said that the port industry does not have the weighing equipment to use the first method of weight verification although some UK ports will be weighing containers Shipping Lines state that they are working with shippers to find solutions In the end though, No VGM No Load
Widespread Confusion “Shippers around the world are currently unaware as to how IMO Member States will implement the SOLAS amendment, how the new requirements will be enforced, who will be enforcing them, the associated penalties and other relevant requirements…” Letter written to the IMO from the Global Consolidator’s Group (GCG) on February 28, 2016
Current Federal Maritime Commission (FMC) Licensing Requirements
FMC Ocean Transportation Intermediary (OTI) Licensing Companies who offer moving services to or from the US must be licensed as Freight Forwarders or Non-Vessel Operating Common Carriers (NVOCCs) with the FMC. Foreign companies may be registered as an unlicensed NVOCC. Bonding Levels –Licensed Ocean Freight Forwarder = $50,000 USD –Licensed NVOCC (Both US-based and non US-based) = $75,000 USD –Registered Unlicensed Foreign-Based NVOCC = $150,000 USD
License or Registration Exceptions Shippers whose primary business is the sale of merchandise Vessel Operators that perform FF Services for cargo under their own B/L Ocean Freight Brokers Entities that exclusively transport HHGs for US military or federal civilian executive agencies Agents, employees, or branch offices of a licensed OTI
Penalties for Non-Compliance BAR was fined $80,000 USD for not being properly licensed FMC recently collected $334,000 USD in fines IAM anticipates that additional enforcement actions are imminent.
2016 IAM Annual Meeting
QUESTIONS? SOCIALCAFE.IAMOVERS.ORG/home