Update from Damco on the new SOLAS regulation

Preparing for SOLAS – where things stand today.

07.01.2016

Linda Christensen, SCM.dk

Since publishing our blog post Five things you need to know about the new SOLAS regulations in September, many customers have approached us with questions about the impact these will have on their business processes. At Damco we have been asking that question ourselves while working on making our internal processes compliant. We have reached out to key stakeholders in the industry and this blog presents an overview of the latest status. While some aspects of the implementation are becoming clear, many questions are still unanswered.

The new SOLAS regulation in a nutshell

  • The new regulation aims to increase safety at sea
  • All containers must be weighed before being loaded on a ship. No exceptions!
  • An estimation of the weight is not permitted from 1 July 2016
  • The procedure for declaring the weight may vary from port to port

The scope of the new Safety of Life at Sea (SOLAS) Convention (Chapter VI, Regulation 2) covers: standard sea freight containers, tank containers, flat racks, and bulk containers. IMO also lists the containers that are excluded of the new SOLAS amendment.

Shipper’s responsibility for providing correct weight

The shipper has a crucial role in the new SOLAS amendment. As he is responsible of providing the verified gross mass (VGM) and communicate it to the carrier and terminal. In order to provide the verified container weight, two methods for weighing are allowed to be used:

  • Method 1: Weigh the packed container cargo weight + tare weight together
  • Method 2: Weigh the cargo and other contents, and add tare weight of the container

Both carrier and the terminal are permitted to rely on a shipper’s “signed” weight verification. The expectation is that due to the new SOLAS amendment the shipper could be held liable in case of an incorrect weight causing damage to a ship or its cargo. The consequences of this potential liability on the current insurance liability structure is yet unknown.

Industry alignment is still to be achieved

All of the 171 IMO member-countries will have to integrate the new SOLAS amendment in their national law. So far only a limited number of proposals for laws related to the new SOLAS amendments have been announced by national governments – and none have yet reached the statute books.

Take, for instance, the question of acceptable margins of error related to the new SOLAS amendments. Worldwide, only three trading nations have made proposals for margins of error so far: the UK (5%); the Netherlands (500 kg for containers up to 10.000 kg, and 5% for containers with a total weight of over 10.000 kg); and Australia, which has stipulated that there will be no margin of error accepted at all.

The fact that the acceptable margin of error will vary between countries is already a serious concern for shippers, because it is not clear how they should deal with the difference in the requirements. Adding to this concern is the lack of regulations and guidelines by the U.S. and China.

Despite the lack of information, the World Shipping Council (WSC), who has been zooming in on the legal requirements of the new amendment, has stated that current available information is sufficient for a shipper to become compliant.

Carriers

So far, none of the carriers we have spoken with were able to provide any information on how they will incorporate the new SOLAS amendments into their operational processes. Some carriers announced that they will be able to provide an initial update in December 2015 or January 2016.

Freight intermediaries

In The Wall Street Journal of 4 December, Beverly Altimore, executive director of the U.S. Shippers Association raised the concern that a shortage of weighing providers will occur after 1 July 2016.

While some of the shippers already weigh their cargo at their own premises, most shippers will have to adjust their operational process to meet the new SOLAS amendment. In order to comply, these shippers will need to buy weighing scales, or reach out to certified weighing services.

The proposal from consolidators is that cargo has to be weighed by the shipper prior to a container being consolidated. This could potentially mean: ‘No documents, no loading’. The freight intermediaries anticipate that procedures will be similar to the implementation of the Automated Manifest System (AMS). If the industry agrees to this procedure, the LCL cut-off time will be advanced at origin, allowing time to ensure that a weight certificate has been received on time for the consolidator to stuff the container and provide to VGM to the carrier.

Terminals

In cases where there is any doubt about the container weight, the WSC states that verified gross mass of the container obtained by the terminal is leading. This means that terminals will need to have calibrated weighing equipment available at every terminal. Feedback received from terminals so far indicates that the decision to offer weighing as a commercial service will be made locally.

Electronic Data Interchange

The weight verification is to be provided either as part of the shipping instruction or as a separate declaration. In order to support a smooth transition of data between all parties, an EDI (Electronic Data Interchange) infrastructure is often used between shipper, freight forward, terminal and carrier.

In November 2015, SMDG published the draft specification of the Verified Gross Mass message (VERMAS). This specification provides the data fields for the EDI message that is required to submit VGM. The publication of the VERMAS message is a great initial step of translating the legal requirements of SOLAS into operational processes

Another great initiative is taken by INTTRA, who is developing the eVGM solution. This solution is aimed to provide consensus on a technology standard for digital documentation of VGM submissions. In order to achieve industry alignment, INTTRA has set up a sounding board. The first meeting took place early December, with stakeholders from across the industry represented. Among those was Damco, representing the Forwarders.

What the industry needs to do next

Although there are multiple initiatives taking place around the world, there are some key aspects that the industry needs to get agreement on soon. For example, in order for shippers to take responsibility for providing the verified container weight, it requires national governments to share guidelines on how the SOLAS amendments are incorporated into local law. Especially for Method 2, where cargo is weighed separately from the container, national governments will need to specify their requirements in regards to accreditation, auditing and margins of error.

Secondly, while carriers and other parties are beginning to align their activities it will require a lot of cooperation. This is crucial in the transition in taking the situation from a legal framework to an operational focus with a commercial impact.

In order to make the VGM data flow through the supply chain it will affect information requirements, timelines for container and documentation and message structure. The obvious conclusion is therefor that alignment between industry partners is therefore essential.

Count down: only six months to go!

It is clear that while many parties are addressing the subject, many decisions still need to be made in order to meet the 1 July 2016 deadline. At Damco we are not only working on making our own operations ready to seamlessly comply with the new regulations, but also encouraging others in the supply chain to do the same – sooner rather than later!

If you are facing particular issues, or have other questions not yet addressed, feel free to contact your local Damco representative. 

Bredana Axcite A/S

Sponseret

SCM-dagen 2024: Bliver AI en gamechanger i Supply Chain?

Teknologisk Institut Innovation og Digital Transformation

Sponseret

Vækst kræver robusthed

Relateret indhold

27.03.2024SCM.dk

Nyt projekt har fokus på at genanvende tæppefliser

27.03.2024SCM.dk

Medie: Maersk og DSV har budt på DB Schenker

26.03.2024SCM.dk

Månedens udfordring: Logistikdirektøren som antropolog og facilitator

25.03.2024SCM.dk

Danske virksomheder med i verdens innovative elite

25.03.2024Toyota Material Handling A/S

Sponseret

3 centrale trin til ESG i din materialehåndtering

22.03.2024SCM.dk

Juniormesterlære skal åbne døre for uddannelser

21.03.2024Global AGV

Sponseret

Welltec udnytter medarbejderressourcer bedre med Global AGV

21.03.2024SCM.dk

Længere værnepligt presser arbejdsmarkedet

Jobmarked

Se alle

Körber Supply Chain DK A/S

Electrical Site Supervisor

Er du parat til at gøre verden til din arbejdsplads? Med 150+ rejsedage om året bliver du en af vores vigtigste repræsentanter på kundernes sites, hvor vi leverer og installerer komplekse og højteknologiske logistikløsninger. Vil du bidrage med din faglighed og dine evner for teknisk ledelse? Så er det netop dig, vi søger til en stilling som Electrical Site Supervisor!

Område

Nordjylland

Ansøgningsfrist

Snarest muligt

Körber Supply Chain DK A/S

Site Manager

Er du vores nye jonglør? Når vi installerer vores komplekse og højteknologiske logistikløsninger på kundernes sites overalt i verden, har vi brug for en Site Manager, der er i stand til at jonglere med adskillige opgaver og bevare overblikket. Samtidig skal det sikres, at vores stærke relationer både internt og til vores kunder bevares og udvikles. Er det dig? Så tilbyder vi en stilling som Site Manager!

Område

Nordjylland

Ansøgningsfrist

Snarest muligt

Eltronic Fueltech

Supply Chain Specialist

Kunne du tænke dig, at spille en afgørende rolle i arbejdet med at udvikle den samlede værdikæde i en virksomhed, der i den grad bidrager til den grønne omstilling? Og ønsker du at tage et ansvar for at vi på tværs af organisationen styrker samarbejdet og processerne ud mod både leverandører og kunder? Så skal du med på holdet!

Område

Midtjylland

Ansøgningsfrist

07.04.2024

Körber Supply Chain DK A/S

Mechanical Engineer

Drømmer du om at arbejde med komplekse og højteknologiske løsninger?

Område

Nordjylland

Ansøgningsfrist

Snarest muligt

Körber Supply Chain DK A/S

Shipping & Planning Coordinator, Barselsvikar

Hos Körber Supply Chain DK fokuserer vi på at skabe værdi gennem produktivitet og effektive logistikløsninger. Vi er i markant vækst og søger en barselsvikar til at overtage shipping-funktionen og være en nøglespiller i den kommende periode, når en af vores medarbejdere går på barsel ved udgangen af juni.

Område

Nordjylland

Ansøgningsfrist

Snarest muligt

Körber Supply Chain DK A/S

Category Manager - med primært fokus på projektindkøb

Hos Körber Supply Chain lægger vi stor vægt på godt kollegaskab og stærk holdånd i en travl hverdag: Vi ved ganske enkelt, at det er nøglen til vores succes! Vi er en virksomhed i udvikling og søger derfor en erfaren Category Manager til at styrke vores indkøbsteam. Vores dedikation til innovation har gjort os til en førende aktør i branchen. Som Category Manager hos Körber bliver du en del af et passioneret og resultatorienteret team, hvor din erfaring vil spille en central rolle i at udvikle vores indkøbsstrategi og forbedre vores leverandørnetværk.

Område

Nordjylland

Ansøgningsfrist

Snarest muligt

Körber Supply Chain DK A/S

Project Engineer - Controls

Hos Körber Supply Chain lægger vi stor vægt på godt kollegaskab og stærk holdånd i en travl hverdag: Vi ved ganske enkelt, at det er nøglen til vores succes! Som vores nye Project Engineer - Controls bliver det derfor også en central del af din hverdag, som del af et passioneret og internationalt team der hver dag arbejder for at bringe automation og PLC til nye højder.

Område

Nordjylland

Ansøgningsfrist

Snarest muligt

Apport Systems A/S

Bliv vores Frontend Software Developer til Apport Cloud WMS.

Synes du, at ny teknologi og kvalitet inden for softwareudvikling er drønspændende? Fantastisk, så læs med her – vi leder efter dig, der bliver en del af Apport teamet som vores Frontend Software Developer.

Område

Midtjylland

Ansøgningsfrist

Snarest muligt

Apport Systems A/S

Bliv vores Software Developer. Vores SQL Expert til udviklingsteamet.

Er du klar til at blive Apports nye softwareudvikler: et job med ansvar, selvstændighed og IT-kundskaber. Vi glæder os til at modtage din ansøgning.

Område

Midtjylland

Ansøgningsfrist

Snarest muligt

Hold dig opdateret med SCM.dk

Tilmeld dig nyhedsbrevet og følg med i alt som rører sig indenfor ledelse af forsyningskæden, Nyhedsbrevet kommer kun to gange pr. uge.

Se flere temaer

Events

Se alle
DTU Learn for Life
Efteruddannelse
Sikker implementering af systemer

Er det dit ansvar, når virksomheden skal sikre data under transport og ved opbevaring? Så er det vigtigt at vælger en sikker og tilstrækkelig hurtig kryptografisk algoritme.

Dato

04.04.2024

Tid

17:00

Sted

Lautrupvang 15. 2750 Ballerup

DTU Learn for Life
Efteruddannelse
Netværksforsvar og angrebshåndtering

Vil du lære det nyeste inden for trusler, sårbarhed og malware – og samtidig blive skarp på kryptografiske løsninger?

Dato

04.04.2024

Tid

17:00

Sted

Lautrupvang 15. 2750 Ballerup

DTU Learn for Life
Efteruddannelse
Ledelse af implementering

Få værktøjer til at lede din egen implementering af nye teknologier, systemer og strategier. Tilmeld dig dette kursus, som også er et diplommodul, og få kompetencer til at skabe vellykkede implementeringer i din organisation.

Dato

08.04.2024

Tid

17:00

Sted

Lautrupvang 15. 2750 Ballerup

TrueCommerce
Webinar
WEBINAR: Stay Compliant: E-invoicing Updates (April)

Webinar – Torsdag d. 11. april klokken 13.00

Dato

11.04.2024

Tid

13:00

Sted

Online

Bredana Axcite A/S
Konference
SCM-dagen 2024

Bliver AI en gamechanger i supply chain?

Dato

17.04.2024

Tid

08:30

Sted

AI Innovation House Innovations Allé 3 7100 Vejle

Bredana Axcite A/S
Seminar
SCM-dagen 2024: Bliver AI en gamechanger i Supply Chain?

Glæd dig til SCM-dagen 2024 - en inspirerende seminardag med 11 indlæg + to gæstetalere, hvor strategi, teknologi og stærke løsninger i Dynamics 365 Finance og Supply Chain Management er omdrejningspunkter

Dato

17.04.2024

Tid

09:00

Sted

AI Innovation House i Vejle