Recent data has revealed that a significant number of containers are being shipped with mis-declared regarding weight in excess of 1 tonne against declared verified gross mass (VGM). This serves as a timely reminder and warning to ensure compliance at all points in the international trade supply chain.
WHY IS THIS IMPORTANT
Since July 2016, the international Safety of Life at Sea Convention (SOLAS) has required shippers to obtain and document the verified gross mass of a packed container prior to vessel loading. Yet, the world's leading transport and logistics insurer, TT Club has identified that as much as two-thirds of cargo damage claims can be attributed to poor and improper packing.
In responding to questions raised by FTA and APSA, Henry Steindl, TT Club Underwriter, advised whilst unsecured cargo accounts for most of this damage, mis-declared and especially overweight containers are a major concern.
"Inaccurate container weights can have significant effects on a container ships' stability, with a container's weight being the determining factor as to where on a ship the container will be positioned. Modern container ships can carry in excess of 20,000 TEUs, so even minor discrepancies can aggregate to erode margins of error and mis-declared container weights have been implicated in container ships grounding, capsizing, and breaking up."
Overweight containers can damage the container and cargo, cause lift trucks and cranes to topple, exceed axle load limits on trucks, and more importantly can injure those working in the logistics industry, as well as the general public.
THE ROLE OF THE STEVEDORE
Steindl added that the requirement for shippers to provide a Verified Gross Mass (VGM) was introduced to improve safety throughout the transport chain and whilst shippers are for the most part complying with these requirements, inaccuracies remain. "Governments around the world have varied ways of enforcing and regulating VGM requirements with some not enforcing them at all. It has largely fallen to container terminals to weigh containers and validate VGM. Weighing every container can be costly and time consuming and a balance needs to be struck."
Steindl says "it is great to see Patricks introducing the Pondus system statistical sampling method which reduces costs and delays and will help to ensure shippers are declaring container weights in line with VGM requirements, thereby improving safety throughout the supply chain."
WHAT IS PONDUS?
Following the completion of successful trials, Patrick Terminals Brisbane Autostrad officially launched their innovative compliance weighing solution called "Pondus" in April 2021. The initiative has been devised to help drive safety across the supply chain from transport companies to terminal operators and to vessels.
The new weighing solution is assisting to identify mis-declared weights by statistically sampling containers for weighing and then automatically notifying customers of weight discrepancies (+/- 1t) allowing parties to better meet their SOLAS and road transport Chain of Responsibility obligations.
The Pondus Stand is a 40ft structural steel device developed by Cindicium, an Australian Company specialising in logistics enhancing technology. The weighing system contains modular load cells to weigh containers. The Pondus weighing system is compliant with OIML R76 Class 3 and also complies with Australian Maritime Safety Authority (AMSA) regulations.
NON-COMPLIANCE
The Patrick Terminals AutoStrads provides an indication of any potential weight nonconformity from the documented weight of a container. Containers with an indicative material deviation are identified for potential weighing on the Pondus stand on a statistical sampling basis. The number of import-export containers weighed depends on Patrick terminal operational circumstances prevalent at the time.
Where Patrick Terminals detects any mis-declared containers a weigh and adjustment charge of AUD $230.00 per container plus GST is being applied to all containers identified as having a weight variance of greater than +/- one metric tonne within the documented weight.
This charge being levied on the relevant transport company for imports and the shipping line for exports.
Statistics provided by Matt Hollamby Patrick Terminals Brisbane Autostrad, Terminal Manager at the recent Landside Logistics Forum (LFF) hosted by the Port of Brisbane indicated that of those containers identified as being potentially misdeclared the Pondus weighing process confirmed approximately 50% were indeed non-compliant.
TARE WEIGHT OF CONTAINERS
The selection of containers weighed comprised imports and exports in equal numbers and the instances of non-compliance followed a similar pattern. The range of non-compliance was most firmly centred around 2 to 5 tonnes, but some units were up to 10 tonnes mis-declared. Further investigation has revealed that mis-declared containers in the vicinity of 2 to 5 tonne range is commonly the result of neglecting to include the tare weight of the container in Verified Gross Mass (VGM) declarations.
NEXT STEPS
Patrick Terminals have indicated that they will progressively deploy Pondus to their other container terminals and will provide industry with adequate notice prior to commencement.
In this context, on Monday 2 August 2021, Patrick announced that the Pondus weighing solution will be implemented into the Melbourne Terminal operations from 4 October 2021 – refer HERE.
Notably, this timeframe complies with the necessary with the Victorian Voluntary Pricing Protocol for stevedore landside charges.
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) will make a formal submission incorporating member feedback. To share your views, please contact me direct at avinson@FTAlliance.com.au
This reform is a timely reminder for exporters and importers to review existing procedures to avoid the sting of additional logistics costs and more importantly, to ensure the safe transportation of containerised cargo.
Tony Vinson - Head of International Freight & Logistics – FTA/APSA