Container Weight verification new regulations coming into force of the shipper how to deal with?

July 1 this year, the International Maritime Organization to verify the weight of the container after the entry into force of new regulations, the shipper if you want the product to send all over the world, will have to pay higher fees. In 2014, the International Maritime Organization adopted the relevant amendments “International Convention for the Safety of Life at Sea” (SOLAS), the provisions of the bill of lading the shipper may obtain proven by the weight of the container One of two ways. However, no matter what way, additional costs will be inevitable.

On the shipper’s global supply chain, someone must be provided before each departure proven weight of containers to shipping lines, otherwise it will not be shipped. “SOLAS Convention” Allow weighing two way: One which, after the container packing, weighing them by One; Second, for all goods weighed, and then adding the container tare weight. Whether shippers choose, you will bear the additional costs – even though the second approach may be cheaper than the One One more species.

The new regulations come into effect, the shipper helpless, turned freight forwarders to find solutions. Because the US container exports mainly grain, waste paper and scrap metal, the weight of each container varies, so many US exporters One can only select the first way, that is individually weighed containers and cargo to Get proven weight. By contrast, most US retail importers can choose the second way, because their stock portfolio unit (SKU) is determined by the weight of each shipment of samples are One.

Keith Andrey vice president of global shipping services UPS United States, said: “The shipper will be used in two ways definitely, but the problem is that they often do not have the appropriate weighing equipment this situation is expected to allow third parties to provide assistance..”

UPS can not be weighed after loading container, but can have the weighing device pier weighing services for unboxed goods. “As long as our clients shipped goods, whether or not full tank, can be weighed.” Andrey said. UPS will add cargo container tare weight, based on the experience to get certified container weight. “But we need to make sure that all countries implement this provision were to accept such an approach.”

Currently, UPS is working with its service network covering all countries to establish a dialogue, to understand how they intend to implement this provision, and how accountability to the shipper.

IMO the new regulations is to avoid overfilling the container loading, resulting liner cargo weight imbalance that threatens the safety of ships. In 2007, the British container ship “MSC Napoli” number in the English Channel because the host failed and was forced to abandon ship. In 2013, Japan’s Mitsui OSK Lines “MOL Comfort” No broken into two parts. In both incidents, the container is considered overweight may be the cause of the tragedy.

“This will lead to increased costs.” Andrey said: “Which liner companies do not have the capacity to absorb the cost of support for this policy brought about.” He believes that the shipping lines operating conditions good enough to have the ability to take on additional labor costs and all other before costs associated with the new regulations related to these costs must be passed on to shippers or freight forwarders. Thus, the major docks and shipping companies are working on how to measure the monetary cost of new SOLAS regulations.

However, the shipper criticized the provision that for some shippers may be overloaded container shippers commonplace, electronics or clothing consignment of goods less often only “must attack”, that is, the use of cut container One possible use space until filled or until the reach the upper weight limit.

However, the report from investment banking and consulting firm Cohen Company (Cowen & Co.) shows that the provisions of SOLAS parties may lead to increased shipping costs by more than 10%. The company said customers paid for the service will be weighed container freight forwarders One key new revenue sources. It is estimated that container from Los Angeles to Shanghai, the total transportation costs will increase by 14%.

One co-author of the report, Jason Seidl, Managing Director Cohen said: “We estimate that the shipper will pay shipping costs and additional weigh in about 100 to 150 dollars per container.” His team had telephoned the consignment people, freight forwarders and trucking companies, the cost is expected to ask before you come to this one estimate. “We estimate the additional costs, for those not currently provide weight to the weight of the container shipping company, but need to gain experience before export license to ship the shipper.”

The implementation of the provisions of the SOLAS shipping business may give cause One definite influence, some retailers will be forced to use air transport. One such, the addition to the direct cost of SOLAS brings, and there will be additional charges. Seidl said: “This will undoubtedly make the entire supply chain is affected.”

The report also said that if the new rules to have any impact on US imports of the retail supply chain, are likely to worsen the problem of excess inventory. Because after July is the retailer ready for school when seasonal merchandise and sell at a discount brand apparel and footwear.

Third-party logistics providers Robinson (CH Robinson) Sri Laxmana Global Forwarding director, said: “want to see the shipping industry, is causing additional truck transport, port operations and waiting costs SOLAS.” He said that according to the provisions of SOLAS submit experience certified container weight is the responsibility of the shipper. However, the company believes that the liner freight forwarders such as Robinson is the shipper. This means that the responsibility passed on to submit them.

Laxmana said: “We understand the need for proven weight of containers in the liner shipping company to make plans before it is sent, however, must in the end when it was sent, the industry still have to have a system in which the One standard One possibility is issuing transport commands transmitted simultaneously. proven container weight information. ”

Consumer electronics manufacturers and suppliers VOXX International intends to use the second approach. Pat Moffett, vice president of global logistics, the company said their Chinese suppliers of electronic products after packing is completed, will be handed over VOXX long freight forwarders in China are Air International Logistics (Air City) weighed tare container and then adding ensure access to proven weight per container, and then loaded on a ship to the United States exports.

VOXX in China has 150 suppliers, this may be required to report their respective products and packaging for each shipment weight and shipping agent plus container tare. However, vendors do certainly should be charged, which would cause problems.

Moffett said: “If our suppliers to do the job, they will inevitably weigh charges and time-consuming, maybe vendors busy in error is therefore my intention to deal with freight forwarders and official registration submitted. after. freight forwarders to provide us with documents and weight, we will take over the goods from their hands. ”

Moffett estimated in accordance with the provisions of SOLAS weighed containers and shipped to Chinese ports per 40-foot container will increase 50-75 US dollars of additional costs. British DELO Shipping Consultants tracking data show that in early April this year, China shipped from Hong Kong to Los Angeles container spot freight rate of $ 718. One reference to this price, due to higher costs after the weighing result, the cost of transport from ports in mainland China than in Hong Kong was up 7% to 10%.

Therefore, VOXX suppliers will continue to follow the Chinese FOB (FOB) trade. Airlines are responsible for international logistics container weighed and transported to the port of departure. Proven weight of containers attached to the bill of lading, and has been sent to the responsible shipping company before loading the electronic version of the bill of lading.

Other American shippers are also plans to use the second way to get certified container weight. So they do not weigh each container and its contents and packaging. Reviewed anonymity of large US companies import and export logistics director, said: “qualified weighing equipment are not enough, how could promptly weighed all containers?”

His company intends to use the main data suppliers, including inventory data per unit weight of each product, the number of products within each package, as well as the weight of each pallet packaging. He said: “This One, we can print the packing slip or invoice, as indicated in the above weight.” Weight per container contents would have been calculated in the company’s IT systems, and with the container tare adding, weight per container so as to arrive proven.

The logistics director, said: “This can be obtained without weighing weight if weighed together with the container from the One, thousands of boxes, each carton or pallet-by-One process, mistakes will certainly not say why. because we have been weighed before the weight of the same species of the box clearly how heavy the other boxes. our technical specifications are very strict, there is no difference in the weight of each box. we know the weight of each component and the bezel, case superscript very clear, crates multiplied the number directly on the line. ”

Get certified container weight by this method, it will also generate One fixed costs. But the supervisor said that this is to minimize the amount of money that are fixed and will not change. He said: “We will certainly accounting audit process to ensure that no weight problem in accordance with United Kingdom, we must have the International Organization for Standardization (ISO) some form of certification, to ensure accuracy of the data in the master system One standard..”

Other Chinese in the United States are waiting for new regulations of SOLAS propose appropriate measures to implement, but they weigh task to Chinese suppliers to resolve. Chinese imports from a home improvement supplies in the United States said that the implementation of new regulations SOLAS similar process in 2009 in the United States experienced: At that time, US Customs and Border Protection Agency requires importers before shipment documents submitted no later than 24 hours explained the contents of the consignment. He said:. “The new regulations and the previous 10 plus 2 One sample disclosure policy may be trial and error process works especially well if in some way, it will become the industry standard, and then we all know how to do it . ”

Source: Ocean Harbor Network