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I n s i d e I C H C A | A p r I l 2 0 1 6 P a g e | 1
April 2016
About ICHCA – International Cargo Handling Coordination Association
The International Cargo Handling Coordination Association (ICHCA) is an international, independent, not-for-profit organisation dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA International’s privileged non-government organisation (NGO) status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies. Its Expert Panel provides best practice advice and publications on a wide range of practical cargo handling issues. ICHCA Australia Ltd is proud to be part of the ICHCA International Ltd global network. To access past newsletters and other useful information go to the ICHCA Australia website at www.ichca-australia.com . We also have an ICHCA international website at www.ichca.com To join ICHCA please contact Ian Lovell, Company Secretary of ICHCA Australia Ltd on [email protected] or telephone 0400 708 182.
Inside This Issue
ICHCA Australia Annual Meeting ..................................................................................................... 1
Appreciation of John Strang’s Involvement With ICHCA ................................................................ 2
ICHCA SA Lunch ................................................................................................................................ 3
Container Verified Gross Mass (VGM) Forums Held Nationally ..................................................... 6
Flinders Container Terminal New SOLAS Regulation Arrangements .............................................. 8
ICHCA International Container Weighing Seminar: Antwerp ......................................................... 9
European Calls on Weight Regulations .......................................................................................... 10
ICHCA Contacts .............................................................................................................................. 13
ICHCA Australia Annual Meeting
ICHCA Australia recently held its annual meeting in Adelaide, with John Warda re-elected unopposed as the chairman and finance director.
In reporting on the previous year, Mr Warda said while 2015 had been a challenging year, ICHCA had improved its budget situation and importantly been able to demonstrate to members and supporters the value of the important work the organisation has been involved in, both in Australia and internationally.
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He said the recent ICHCA International conference in Barcelona was a great success and demonstrated the very strong links ICHCA has with key international regulators and policy makers. Mr Warda said that in 2016, ICHCA Australia would seek to build on the good work which is underway and on the outcomes it has identified in its strategic plan.
The board will target increasing networking sessions in NSW and Queensland and continuing luncheons in Melbourne and SA and looking to establishing a WA chapter.
In addition to Mr Warda being re-elected, Peter van Duyn has taken up the Deputy Chairman role and Gary Campbell, David Bendall and Laurence Jones continue on as Directors. New directors are Sallie Strang from Strang International Pty Ltd and Marcus John the Managing Director of Thomas Miller (Australasia) Pty Ltd.
Neil Murphy is continuing in his role as Chairman of ICHCA SA (new e-mail [email protected]) while John Ingster ([email protected]) from Strang International is the new ICHCA NSW chairman.
John Warda’s e-mail address has also recently changed - [email protected].
Appreciation of John Strang’s
Involvement With ICHCA
The Board of ICHCA Australia regretfully accepted the resignation of ICHCA Australia and ICHCA International icon, John Strang. Mr Strang has been chairman of both ICHCA International and ICHCA Australia. He has retired from the Board for health reasons.
The Board expressed its sincere appreciation for the tireless efforts Mr Strang has devoted to ICHCA over several decades. Australian ICHCA Chairman, John Warda, said John Strang’s influence and leadership within ICHCA, and in the cargo industry generally, spanned the globe and he is an admired and respected industry leader globally.
Mr Warda said, “His generosity is amazing and his immense knowledge along with his calm and balanced influence and guidance will be sorely missed.”
John F.R.Strang is the Chairman and owner of the Strang-Tradex Group. John served as Chairman of Strang Patrick Stevedoring from 1989 to 1993 and the Port of Portland, Victoria from 1993 to 1995.
He is the current Australia-New Zealand representative for the Port of Long Beach, California, USA, having held this position since its inception.
John is a member of the following professional bodies:
• Former Chairman ICHCA International Limited (International Cargo Handling & Co-ordination Association) London
• Former Director & Chairman of ICHCA Australia Limited (ICHCA International Limited), London
• Member of the Federal Advisory Committee of the Navy League of Australia
• Member of the American Institute of Political Science
• Fellow of the Australian Institute of Company Directors
• Former President of the Australia-Russia & NIS Business Council
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• Former Director & Vice President of the Executive Council of the Victorian Employers Chamber of Commerce and Industry (VECCI)
• Former Chairman of the Australia-New Zealand Business Council
• Former Director of the Global Foundation, Melbourne.
ICHCA SA Lunch
The next of the popular ICHCA SA luncheon forums will be in Adelaide on Wednesday 25 May. The speaker will be Scott McKay, Chief Executive Officer of Bowmans Intermodal Pty Ltd who will be speaking on Bowmans Intermodal in the Supply Chain.
The lunch will be from noon to 2pm at The Lakes Resort Hotel, Brebner Drive, West Lakes.
The Bowmans Intermodal terminal and rail-link provides an efficient transport corridor for regional producers in many industries, creating further wealth creation for the region and state. The terminal is just 100km from Adelaide and is strategically placed to service the export hay, grain and lead industries and has led to a significant reduction in truck journeys to the Port of Adelaide and beyond.
Come along to this luncheon to network with your colleagues and to hear about the ongoing development of the Bowmans Terminal and the future opportunities it is progressing and threats it is facing.
For more information and to register for the luncheon please refer to attached invitation, or email Neil Murphy.
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Container Verified Gross Mass (VGM)
Forums Held Nationally
During April a number of forums were held in capital cities across Australia which dealt with the issue of overweight containers. The forums were organised by the Container Transport Alliance Australia (CTAA) and the Freight & Trade Alliance (FTA) for stakeholders in the export container supply chain.
ICHCA Australia Deputy Chairman, Peter van Duyn, was a forum presenter giving an overview of the situation internationally. Copies of the FAQS booklet, put together by ICHCA International in conjunction with the Global Shippers Forum, the World Shipping Council and the TT Club, were distributed at the forums. See link: http://www.ttclub.com/loss-prevention/publications/container-weighing/
The issue of overweight containers has been around for a long time and after extensive consultation with its 170 member states, the International Maritime Organisation (IMO), which is part of the United Nations, has stipulated that from the July 1 this year a container carrying cargo, to be loaded onto a ship, needs to have a verified gross mass (i.e. an accurate gross weight of the container and its contents). These regulations require the shipper to verify the weight of a packed container by either weighing the container or calculating its weight by adding the weight of all cargo, the packing material and the tare of the container.
The new regulations are in response to a number of accidents on vessels with overloaded containers that caused or contributed to loss of life or loss of vessel. The overloading also resulted in container lifting equipment failures which caused serious damage to the cargo and equipment as well as personal injury, sometimes fatal. Not having the correct weight of a container can lead to containers falling overboard or container stacks on board vessels collapsing. It has also caused vessels to capsize due to loss of stability.
• m/v Deneb which capsized in 2011.
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In 2010 the Maritime Safety Committee of the IMO started investigating how these issues could be prevented and after five years of consultation with its members it came up with amendments to the Safety of Life at Sea (SOLAS) convention which stipulates that from the 1 July 2016 all containers being loaded onto a vessel need to have a VGM.
In Australia all export container information is pre-advised electronically before the container arrives at the container terminal gate. All container terminal operators in Australia have publicly stated that if this pre-advice does not contain information about the VGM they will not be accepted. This means that shippers, exporters and forwarders must ensure that the container is weighed or the weight is calculated before the container is presented at the terminal gate. The operator of the new container terminal at Webb Dock (Melbourne), Victoria International Container Terminal (VICT), has stated that they will provide a weighing service once they commence operations in early 2017.
The container terminals pass the container VGM to the master of the vessel (or their representative) in a timely manner in order for them to calculate the stability of the vessel before setting sail. Under Marine Order 42 in the Navigation Act the Australian Maritime Safety Authority (AMSA) is tasked with the responsibility to ensure that this occurs and the safety of the vessel is not jeopardised.
At the forums presentations were made by: AMSA, 1-Stop Connections (which provides electronic messaging between importers/exporters/forwarders/customs and the container terminals); Holman Fenwick Willan (HFW lawyers); ICHCA; VICT; Conroy Removals and weighing systems vendors such as Conweigh, Weighit and Chek-Way. AMSA and HFW explained how the new regulations will work, what accuracy is required, the legal implications and penalties applicable if the VGM is not accurate. The weighing equipment vendors demonstrated how their equipment would calculate the accurate weight of the container and at what cost.
• Peter van Duyn presenting ICHCA’s views at the Melbourne Forum.
Lively discussions were held among the forum participants and many questions answered. The introduction of these regulations will probably go relatively smooth in Australia but in a number of jurisdictions overseas many questions are still to be answered and disruption of supply chains should not be discounted.
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Flinders Container Terminal New
SOLAS Regulation Arrangements
With the new regulations on container weights coming into effect from July 1, Flinders Adelaide Container Terminal will no longer receive or load containers without a declared Verified Gross Mass (VGM). The new arrangements will be effective from July 1.
“Shippers can continue to use our Pre-Receival Form (PRA) as long as the shipper or an appointed third party provides the VGM,” said Mr Steve Cox, General Manager, Flinders Adelaide Container Terminal.
There are two approved options to confirm a container’s VGM: either the shipper or third party appointed by the shipper weighs the packed and sealed container using calibrated and certified equipment after packing is completed, or the shipper or agent weighs all cargo items, packaging and securing materials on calibrated and certified equipment, then adds this to the tare mass of the container to give the total VGM.
In addition, shippers will need to include details of the “method” and the name of the “authorised individual” on the PRA forms they send to Flinders Adelaide Container Terminal.
“We are currently working with 1-Stop to develop a message type for shippers lodging PRA’s with the terminal via EDIFACT messaging. This will be a single message type that our clients can use on both 1-Stop and FACT communications platforms,” Mr Cox said.
Work on this common message type will be carried out over the coming weeks. Once the work is complete Flinders Adelaide Container Terminal will update its systems and customers will be informed.
For further information about these planned changes, please consult Flinders Adelaide Container Terminal’s Information Booklet. Click here to access.
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ICHCA International Container
Weighing Seminar: Antwerp
ICHCA International Container Weighing Seminar
Wednesday 1 June 2016, Antwerp, Belgium
Book before 30 April for 10% discount
New speakers announced Bromma Conquip - Lars Meurling, VP Marketing
ICHCA - Richard Brough, Technical Advisor
TT Club - Michael Yarwood, Claims Executive
International Organization of Legal Metrology - Ian Dunmill,
Assistant Director
State of the art simulators In the course of the day participants at the seminar will have the
opportunity to visit Ocha’s state-of-the-art simulators for mobile
crane, straddle carrier and ship-to-shore crane during every break or
at lunchtime. Delegates can also join a 20 minute guided tour around
the 35,000 m² training area, as well during breaks and at lunch hour.
Upon request these visits can also be arranged at other moments.
One month out - Are you ready? According to Lloyd's Loading List, Box-weighing changes ‘could
raise freight costs by more than 10%’. There has also been
confusion over enforcement in different countries, particularly in
the U.S as reported in World Cargo News. It is vital for
stakeholders across the supply chain to ensure that they
understand the impact of VGM regulations before they come into
effect.
A chance to bring your questions to a key industry form
BOOK NOW AND SAVE 10%
BOOK NOW
SPEAKERS
FULL AGENDA
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Don't miss this practical, 'hands-on' 1 day seminar organised by ICHCA, the voice of global cargo handling. Held at the OCHA Training Center in Antwerp, the event will bring all the interested parties together to discuss in a highly focused, workshop-style debate, how to comply with and communicate plans ahead of the imminent deadline for container weight verification.
Register online: http://www.etouches.com/ichcacontainerweighing2016 Call us: 00 44 20 3327 7560
Email Helen Coffey: [email protected]
European Calls on Weight Regulations
European organisations representing Shippers, Freight Forwarders, Terminal Operators and Port Authorities call on National Authorities to take action in coordination to preserve level playing field.
VIEW AGENDA
SEMINAR
WEBSITE
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In November 2014, the International Maritime Organisation (IMO) agreed on rules for the mandatory weighing of all sea-bound containers to be loaded on a vessel. The above mentioned organisations accept these rules and are committed to working towards the successful implementation of the new legal obligation.
The amended SOLAS convention comes into force from July 1 2016, after which date all “shippers” (that is the party named in the ocean carrier’s bill of lading) must declare to the carrier in advance the verified weight of packed containers. To ensure that the logistics chain can continue to function in a proper manner, the above mentioned organisations call on national authorities to take urgent, coordinated action along the lines indicated below. The absence of such action will lead to competition distortion and significant interruption to the functioning of the logistics chain.
Commitment to Level Playing field
To ensure that the implementation of the new legal requirements does not create competition distortion through a patchwork of varying national measures, Member States should pursue a coordinated European approach, taking into consideration the national guidelines of other Member States when deciding on national rules. Supply chain actors and national authorities should work towards commonly accepted guidelines in order to minimise distortion of competition and ensure smooth functioning of the SOLAS requirements. Cooperation in drafting of guidelines must focus on two main elements: tolerances applying to weighing equipment and the certification of those shippers approved to issue VGM certificates using Method 2 based upon common standards and programmes (such as AEO, ISO 9001, ISO 28000) or other existing obligations or recommendations to provide the container weight.
Certification of Weighing Equipment and Methods
Regarding the accuracy of weighing equipment, it is currently the responsibility of the implementing State to define the appropriate standards and this is particularly important in relation to both methods of weighing. National authorities need to be aware that excessive requirements can have an adverse impact on the logistics chain. For example, an over- reliance on weighbridges for Method 1 weighing may create unnecessary bottlenecks which could be avoided by using other devices, such as spreader mounted weighing devices. Similarly an over-complicated system for the regulation of Method 1 and 2 users could lead to delays in their authorisation in the short time left before implementation deadline of the SOLAS amendments.
In order to avoid market distortions, it is important that countries around Europe adopt similar standards on certification which are not overly restrictive and do not have an adverse impact on the functioning of the logistics chain. So as to ensure transparency and certainty for all actors in the supply chain, evidence should be available when required of the shipper’s authorisation to provide a VGM.
Acceptable Tolerances for Weighing Equipment
It is important that national authorities communicate the accepted tolerance level for weighing equipment used to issue, and where necessary verify a declared VGM (for example; 5% or an acceptable variation from the declared VGM) in advance of 01 July 2016. It should be borne in mind that variations in implementation may lead to a distortion in competition between Member States. We encourage this coordination to pursue a level of tolerance which allows sufficient flexibility to take into account variations which may occur through natural weight variations, inaccurate tare weight on official plates, or through the use of different equipment, so as to not create blockages to the supply chain by unduly refusing carriage, while also not jeopardising safety and therefore the purpose of the rules.
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Chain of Communication
The verified gross mass (VGM), and any other relevant information, shall always be communicated by the shipper to the carrier and subsequently to the terminal operator, unless otherwise agreed. The shipper remains responsible for communicating via the agreed chain of communication and in accordance with an agreed timetable.
It is recommended to communicate the VGM at the earliest opportunity, and if possible before the delivery of the packed container to a port terminal facility, in order to avoid complications. If the VGM has not already been communicated, or if no contractual agreement has been agreed to obtain the VGM at arrival at the terminal, it is possible that the terminal will refuse entry of the container.
Confirmation of VGM
The carrier and terminal operator are not responsible for ensuring the accuracy of the VGM provided by the shipper. All actors in the logistics chain are entitled to rely on the VGM declared by the original shipper as being accurate. If no VGM has been established, a container cannot be loaded on a vessel.
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ICHCA Contacts
ICHCA Australia Chairman: John Warda Mobile: 0417 875 113 Email: [email protected]
National Secretary: Ian Lovell 9 Durham St, Henley Beach SA 5022 Tel: 0400 708 182 E-mail [email protected]
State Co-ordinators State Chairs New South Wales: John Ingster Strang International Pty. Ltd. Suite 4.05, 247 Coward Street, Mascot NSW 2020 Tel: 0416 237 074 Fax: (02) 9317 4514 Email: [email protected]
South Australia: Neil Murphy 12 Ashley Ave, Ridgehaven 5097 Tel: (08) 8263 7686 Email: [email protected]
Queensland: Sallie Strang Strang International Pty. Ltd. 936 Nudgee Road, Northgate Queensland 4013 Tel: (07) 32678022 Mobile: 0412 604 842 Email: [email protected]
Victoria: Peter van Duyn Institute for Supply Chain and Logistics Victoria University, PO Box 14428, Melbourne VIC 8001 Phone +61 3 9919 6264 Mobile +61 4 1937 0332 Email: [email protected]
ICHCA AUSTRALIA LIMITED (IAL) PRIVACY POLICY
IAL’s Privacy Policy Details are available by contacting the National Secretary, Ian Lovell, on e-mail [email protected] or telephone 0400 708 182.
Our Contact with You
If you do not wish to receive further copies of this newsletter please advise [email protected] and the distribution will be cancelled. If you wish to have it sent to other people in your organisation or contacts in the cargo handling industry also please advise us.
