SOLAS Briefing 01-JUN-2016

Update to our May 9 SOLAS Advisory covering export ports in Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Myanmar, Pakistan, Philippines, Singapore, South Africa, Sri Lanka, Taiwan, Thailand, United Arab Emirates & Vietnam.

LCL Export Cargo

As previously announced, the International Maritime Organization (IMO) has adopted amendments to the Safety of Life at Sea (SOLAS) Convention.

As of July 1, 2016, all loaded export containers are required to have a Verified Gross Mass (VGM) declared by Shippers to the respective ocean Carriers with whom the containers are booked.

Vanguard will be adhering to the SOLAS regulations worldwide, using one of the following two methods for our submission of the VGM:

Method 1: Obtain VGM by weighing the packed container and subtracting the road vehicle where applicable (chassis/trailer/cab).

Method 2: Obtain VGM by weighing the individual shipments, dunnage and container tare weight.

For LCL cargo, Vanguard will not require a VGM submission. As always, we do expect that an accurate cargo weight be submitted as part of the customary shipping documents. To clarify, there is no VGM for individual LCL shipments according to the SOLAS amendment and as such, requesting certification from shippers or their forwarders has no merit. SOLAS regulations apply only to the packed container which is tendered to the ocean Carrier. Therefore, it is Vanguard’s responsibility, as the master consolidator, to submit the VGM and meet the SOLAS requirements while maintaining schedule integrity.

We have teams around the world who continue to work with our CFS stations, ocean Carriers and their terminals, along with local regulatory bodies on solutions that best fit local processes.

For LCL export cargo, the following VGM related fees will be implemented for cargo received on or after July 1, 2016:

  • USD $25.00 – VGM Administration Fee per LCL Bill of Lading (or local currency equivalent)

FCL Export Cargo

For our FCL product, as Vanguard does not control the loading of the container, we rely on our customers to provide us the VGM. This needs to take place prior to the VGM cut off at the respective terminal. Minimum requirements are:

  • Vanguard Booking Number
  • Container Number
  • VGM
  • Unit of measurement
  • Date
  • Name of person authorized by the Shipper

For FCL cargo, Vanguard will assess a VGM Administration fee per container. This will be regardless of which party obtains the VGM, the customer or Vanguard. Should Vanguard be requested to obtain the VGM, additional charges such as a weigh ticket, driver waiting time, additional trucking, re-delivery, repositioning and any other applicable out of pocket expenses, may apply.

For FCL export cargo, the following VGM related fees will be implemented for cargo received on or after July 1st, 2016:

  • USD $25.00 – VGM Administration Fee for 1st container, plus US$10 for each additional container on the same Bill of Lading (or local currency equivalent)

We will continue to monitor developments and keep you informed through further updates.