INDUSTRY OPINION:

Travis Brooks-Garrett* - Melbourne

May 01 2017 - 13:15:00

VICTORIA International Container Terminal (VICT) at Webb Dock has started check-weighing export containers received against the Verified Gross Mass (VGM) provided by shippers and forwarders in 1-stop.

With four vessels now serviced by the terminal, VICT has released their VGM verification data to key peak bodies. The results are in and they warrant concern.

The data suggests that non-compliance remains alarmingly high with an average of 20% of export boxes mis-declared by a variance of 500kgs, while more than 8% of boxes were mis-declared by more than a tonne.

The civil penalty for a mis-declared VGM is 50 penalty units, or $9000 (Marine Orders Part 42- Section 11).

Notably, mis-declaration of import containers is worse, with over 40% mis-declared by a variance of 500kg and over 11% with a variance of over a tonne.

The introduction of the new SOLAS requirements arrived with little more than a whimper last year. But in an environment where the regulator is not check- weighing boxes, is industry taking these regulations seriously? All of industry is declaring VGMs in the Pre-Receival Advice (PRA) (it's a mandatory field) but this data would suggest that industry has a long way to go before it achieves real compliance.

From the perspective of the Australian Peak Shippers Association, we want our shippers to be compliant with the law. As large businesses with significant liabilities, they want to be compliant with the law. If third-party weighing providers and/or internal systems are not meeting the prescribed standards, then we want to know and we want those failings addressed.

To date, the auditing of export containers by the Australian Maritime Safety Authority (AMSA) has been predominantly paper-based. Check-weighing at the terminal will provide a new environment of legal accountability for shippers, forwarders and transport operators

Freight and Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and Container Transport Alliance of Australia (CTAA) are working closely with VICT to determine the best way of managing this process.

Through our discussions VICT has agreed to provide industry with a grace period. In the future, VICT will be introducing a "variance fee" on mis-declared boxes, where a discrepancy is in excess of a tonne.

Serial offenders may be referred to AMSA, where a breach is considered a strict liability offence.

Shippers and forwarders are encouraged to immediately review their VGM processes while the grace period is in effect.

VICT has a 'Weigh at Terminal Service' (available as a check box in the 1-Stop system), where the VGM is not required to be provided in the Pre-Receival Advice (PRA). Where possible, we have been encouraging members to make full use of that facility.

Where that is impossible, members are encouraged to contact FTA/APSA's preferred on-demand weighing service, Conweigh, which services shippers and forwarders in most major markets.

DP World are also developing a weigh at terminal service for their inland terminal and on-dock operations and we will keep members abreast of those developments.

FTA/APSA and CTAA have been in contact with AMSA and we will provide more updates as they emerge.

* Travis Brooks-Garrett is a partner at Freight & Trade Alliance and Australian Peak Shippers Association Secretariat

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INDUSTRY OPINION: