Shippers Will Hate Expected Carrier Strategy

How Ports Take Benefit of SOLAS VGM Rule Change

Port of Charleston charging $25 VGM charge.

They are saying change is a continuing. What’s actually fixed about change is somebody at all times finds a solution to earn a living on it.

U.S. ports are in place to money in on the upcoming regulation change that’s the sizzling subject of worldwide transport.

Everyone seems to be speaking in regards to the new Worldwide Conference for the Security of Life at Sea (SOLAS) regulation requiring shippers to offer a verified gross mass (VGM) of loaded transport containers earlier than the containers will be loaded on ships.

How a lot of an affect is that this rule that goes into impact on July 1st going to have on the operation of shippers has been hotly debated.

Many have anxious there will likely be very massive operational modifications that may damage shippers; nonetheless, the U.S. Coast Guard has mentioned that U.S. legal guidelines are literally equal to this new rule.

That might imply U.S. shippers are already in compliance, proper? So there shouldn’t actually be an impact on U.S. shippers, proper?


There will likely be an impact. Right here’s what’s actually going to occur: charges. VGM charges. Is anybody shocked?

Somebody goes to earn a living off this factor. And, in fact, it’s not going to be shippers. Ports simply occur to be within the excellent place to show this rule become cash.

The Coast Guard launched a bulletin to focus on versatility in how shippers can present VGM. Shippers don’t must weigh the loaded containers themselves; terminals will be licensed to do the precise container weighing.

Ports will make the most of that by charging a VGM charge to weigh transport containers for shippers.

The Port of Charleston goes to begin charging a $25 charge to offer shippers with a VGM on a transport container in accordance with an American Shipper article:

The South Carolina Ports Authority on Thursday mentioned it can cost $25 to offer container weight verification on behalf of shippers on the Port of Charleston to adjust to new worldwide maritime security laws.

What an awesome service the Port of Charleston is offering shippers, proper? Effectively, right here’s the true kicker: They’re charging shippers for one thing the port already does anyway.

The article goes on:

The Port of Charleston for years has weighed each export container acquired at its terminals on calibrated scales to fulfill Occupational Security and Well being Administration laws requiring terminals to obtain the gross weight of the container, or use its personal scales to acquire the load, earlier than it’s hoisted by any cargo dealing with tools.

“It has been our place all alongside that we have now employed a finest follow in safely loading ships in our port for the final 20 years because of our weighing of all export containers,” SCPA President Jim Newsome mentioned in a press release.

With out actually doing extra work, ports will earn more money because of the SOLAS VGM rule change.

Ports throughout the U.S. are starting to announce these charges, framing them as a service terminals are offering for shippers. And $25 a transport container is definitely on a budget aspect.

The Port Newark Container Terminal introduced Tuesday “it can present the service to shippers for $69.10 per unit” in accordance with an article from the Journal of Commerce.

Now a transparent image of what the brand new SOLAS VGM rule change means for shippers is coming into focus. No actual operational change. Only a new charge.

The extra issues change, the extra they continue to be fixed.


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