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Shippers Slam Forwarders and Carriers ‘Exploiting’ VGM Rule to Add Fees

marinesalvage by marinesalvage
October 28, 2023
in News
0
shipping containers stacked
shipping containers stacked

Shippers Slam Forwarders and Carriers ‘Exploiting’ VGM Rule to Add Fees

By Gavin van Marle

(The Loadstar) – Shipper representatives have claimed that some freight forwarders and carriers have appeared to make use of the lately carried out VGM rules as a manner producing additional revenues, with studies of VGM-related prices steadily being added to ocean freight invoices.

Friday noticed the official implementation of the brand new SOLAS laws, now exporters should present the verified gross mass of the container and its contents previous to it being loaded on a vessel.

Shippers have two strategies to ship a VGM – both weighing the loaded container, or weighing the cargo and including the tare weight of the field.

With doable problems with entry to weighbridges and different weighing tools, some terminals and provide chain operators have supplied shippers a weighing service, however examples have begun to emerge of shippers being charged a number of assorted charges for VGM-related actions, in keeping with the Global Shippers’ Forum (GSF).

“Regrettably, GSF members, mainly in Asia and Africa, report that some carriers and other ‘service providers’ appear to be exploiting the introduction of the new VGM rules by imposing exorbitant and unjustified charges for questionable and unspecified ‘administration fees’ and other ‘services’,” a GSF assertion mentioned as we speak.

It claimed that Kuehne + Nagel’s Chinese subsidiary is charging each shipper a VGM admin price of $12.75 per full container booked, if the VGM is submitted on-line utilizing KN’s reserving system, and $25 per container booked manually.

Also in China, it mentioned, OOCL Logistics is to cost a $15 admin price per container, whereas GSF members in Sri Lanka reported that delivery strains are contemplating charging shippers $25 for submitting the VGM, and, in instances the place the ultimate weight differs from the booked weight, charging an extra $50 for amending the VGM.

In current interview with The Loadstar, Filip Degroote, transportation director for the EMEA area for Black & Decker, expressed concern that his 3PLs considered the brand new laws as a chance to extend margins.

“Forwarders are seeing it as an additional income stream as a result of they solely speak about further prices, whereas shippers are usually not speaking about prices however avoiding provide chains disruption.

“It’s an enormous effort in the intervening time to get SOLAS carried out. We are weighing our containers, and making VGMs for our LCL bins and on the finish we wish to be licensed at our main vegetation.

“Our system already knows the weight of cargo exactly; we are ISO-certified in all our distribution centres and most of our manufacturing facilities; we are C-TPAT-certified. We are convinced that our processes are ok and the weight we are delivering on our paperwork is ok, and ultimately we want to weigh all our own containers,” he mentioned.

GSF secretary common Chris Welsh added: “Shippers worldwide assist the security targets of the container weighing necessities and are dedicated to fulfilling their regulatory necessities, however this shouldn’t be utilized by provide chain companions as an excuse to impose unjustified charges.

“This is particularly concerning for developing countries, especially in Africa and Oceania, which according to the United Nations Conference on Trade and Development (UNCTAD), pay 40-70% more on average for the international transport of their imports than developed countries (UNCTAD Maritime Report, 2015).”

The Loadstar is quick turning into identified on the highest ranges of logistics and provide chain administration as the most effective sources of influential evaluation and commentary.

Check them out at TheLoadstar.co.uk, or discover them on Facebook and Twitter.



Source of This New

Tags: container weightcontainer weight verification
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