Go clean - go Green SOLAS – VGM Lessons learned Container Shipping - the most energy efficient way of transporting goods Lessons learned Phil Denning – VP Sea Freight Operations – Kuehne + Nagel Inc. Sept. 21st, 2016 Follow us on

Safety in shipping SOLAS – Verified Gross Mass Major incidents and accidents resulting from overweight containers prompted the international shipping community to take action in order to prevent incorrect weight declarations. The International Maritime Organization (IMO) adopted mandatory amendments in 2014 for the SOLAS Convention to be globally effective on 1st of July 2016 SOLAS - VGM lessons learned 7/28/2018

Safety in shipping SOLAS – Verified Gross Mass Challenges prior to implementation Fragmented approach by individual IMO member states. No one size fits all solution. Numerous countries had not issued national guidelines to be followed No industry input from Terminal operators, shippers, forwarders/NVO‘s Realization that many shippers didn‘t actually weigh cargo but calculated the cargo GWT based on a pre-determined formula. Availability of weighbridges / public truck scales in the majority of countries, not just limited to lesser developed countries. Shippers understanding liability and responsibility for providing timely VGM declarations. Ports / Terminal operators announcing no VGM, no gate-in. Varying methods & costs to submit VGM declarations to carriers. SOLAS - VGM lessons learned 7/28/2018

Safety in shipping SOLAS – Verified Gross Mass Challenges prior to implementation cont’d Changes in processes for shippers, forwarders, NVO’s to manage VGM submission led to additional administrative burden for all parties = added cost Varying cut-off dates by carrier/ports Managing & accepting of tolerances between shippers VGM and actual, based on terminal weighing procedures in some countries. SOLAS - VGM lessons learned 7/28/2018

Safety in shipping SOLAS – Verified Gross Mass Solutions realized Efforts of AgTC and major shippers helped convince the USCG to declare an equivalency that enabled existing processes to be used by shippers to comply with SOLAS - VGM declarations – US only. All US terminals agreed to follow USCG recommendations for cargo arriving via truck. VGM still required in US by approx 50% of carriers for cargo moving via rail. Weighing solutions developed in many countries either by ports or local industry with fees assessed to recoup capital investments K+N created it‘s own customer VGM portal accessible via mobile technology Carriers developed VGM pages and several Web portals i.e. INTTRA, Cargosmart came to market with solutions, which make it easier for BCO‘s Based on latest reports, carriers are seeing 95% compliance, globally! SOLAS - VGM lessons learned 7/28/2018

Thank you! SOLAS - VGM lessons learned 7/28/2018