ups webinar: solas – container weight regulations – june 2016
TRANSCRIPT
Container Weight Regulations June 2016
IMO “Safety of Life at Sea (SOLAS) treaty
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 2
SOLAS – UPS Webinar – June 2016
Agenda
• Basics review
• Local requirements
• VGM cut-off hours
• Risks and potential costs
• Transmitting Information
• What to do now
• Resources
• Questions
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Review – SOLAS Basics
What is the SOLAS weight requirement?
• Effective July 1, 2016, shippers listed on the bill of lading will be required to provide
signed certification stating the Verified Gross Mass (VGM) of the loaded ocean container
Who is responsible?
• The “shipper” listed on the carrier master bill of lading is responsible for providing the
VGM
− Where UPS acts as the NVOCC, the shipper will be required to provide the VGM
How is the VGM calculated?
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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Developments in Local Requirements
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Local governing authorities or ports may add specific requirements
International SOLAS Requirements
VGM
Signature
Shipper
Potential Additional Local Requirements
Weighing method
Weighing date
Scale/process registration
Name of scale operator
Company stamp
Who is responsiblefor knowing this?
The local shipper
Who can help?
UPS local OceanService Center may
be able to help
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Potential Terminal VGM Cut-off Hours
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There are two likely models for VGM cut-off timing
• UPS VGM cut-off will be prior to carrier cut-off and will be communicated on the bookingconfirmation
• Carrier’s cut-off will vary by country by port and by terminal• UPS will work to make the timing as easy as possible• The May 23rd IMO circular urging “practical and pragmatic” policies does not change the
effective date of July 1
VGM Info.
Shipper
Cut-off TBD
Freight Cut-off
Terminal In-gate
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Risks
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There are a number of cost and supply chain risks associated withVGM delay or non-compliance
Scenarios:
• Refused at gate due to no VGM
• Accepted but held pending VGM
• Audited weight outside of tolerance
Consequences:
• Additional trucking costs
• Repositioning costs
• Demurrage
• Document amendment charges
• Costs to expedite rolled cargo
• Increased inventory costs for delays
• Lost sales
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Transmitting Information
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There are a number of acceptable methods for communicatingVGM information
VGM Info
Shipper
TransmissionOptions
Fax
Shipping order
Shipper’s Letter ofInstruction
UPS provided form
• GT Nexus• EDI message• Carrier website• Physical shipping document
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Transmitting Information
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Direct carrier contract situations
• Where UPS acts only as the forwarder, the shipper may provide the VGM to UPS and we will sendto the carrier
• Should the shipper choose to submit the VGM directly to the carrier, UPS is asking that theyprovide a copy to the local UPS Ocean Service Center
VGM Info
Shipper
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
What to do now
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Sharpen internal compliance processes and develop contingency plans
Develop Internal Processes:
• Begin collecting accurate weights
• Develop procedure for Method 2
• Develop procedure for producing
signed VGM certificates
• Understand the local requirements
• Determine who your authorized
certificate signer will be, and have a
backup
Develop a Contingency Plan:
• Consider accelerating criticalshipments
• Consider UPS air freight services
• Work with your UPSrepresentative to understandalternative services
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Resources
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Helpful references and tools for our customers and their vendors
FAQs
Shipper Sheet
World Shipping Council – FAQshttp://www.worldshipping.org/industry-issues/safety/faqs
World Shipping Council – RegionalImplementation Info.http://www.worldshipping.org/industry-issues/safety/global-container-weight-verification-rule-effective-july-1-2016
Links
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
For questions, contact your UPS Account Representative
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Thank you