30 August 2016

 

SOLAS VGM Update for U.S. Shippers

 

Dear Valued Customer,

 

 

APL wishes to share with U.S. Shippers the following updates on VGM implementation:

 

  1. Exceptions to ‘Terminal Weighing Approach’

 

On 28 June, we announced APL’s adoption of the ‘Terminal Weighing Approach’ in the U.S.A, under which local marine terminals operators could weigh containers upon arriving at truck gates and then submit to APL the gross weights as VGM equivalents, on Shippers’ behalf.

 

Although it is already widely practiced at most terminals in the U.S.A. today, we wish to highlight that the ‘Terminal Weighing Approach’ is not applicable at the following two terminals:

 

  • Dutch Harbor (DUT)
  • New Orleans (NQ3)

 

Please note that the ‘Terminal Weighing Approach’ method is not applicable to any terminals in Canada.

 

For all international outbound shipments from these two terminals in the U.S.A. and all terminals in Canada, Shippers will still be required to submit VGM data directly to us via your preferred APL-approved method.  More information on VGM submission methods is available at APL’s SOLAS VGM Handbook via APL.com/VGM.

 

  1. U.S.A. on-dock rail cargo: Rail billing’s gross weights as VGM equivalents

 

Specifically for on-dock rail cargo in the U.S.A, effective 6 September 2016, APL will be accepting gross cargo weights per new rail billings as shippers’ VGM-equivalent declaration.  This is on the condition that the Shipper or its agent duly provides a certified actual gross cargo weight complying with the requirements of Intermodal Safe Container Transportation Act (ISCTA), prior to rail billing. 

 

APL will derive the VGM-equivalent weight by adding the gross cargo weight to a corresponding container tare weight. 

In order for Shippers to qualify for this on-dock rail VGM-equivalent process, it is required that all Shippers submit only accurate gross cargo weight data.  Note that per SOLAS VGM regulation, estimated weights are not permissible.

Shippers may still choose to submit their own VGMs via one of our preferred methods found in the APL’s SOLAS VGM Handbook by the time of rail billing.  In such a case, the overriding VGM value will be based on what the Shipper submits directly to APL, and not the derived value from rail billing. 

 

  1. Strict enforcement of ‘No VGM, No Load’ policy 

 

Now with two months of VGM implementation behind all concerned stakeholders in the shipping eco-system, we expect Shippers to fully comply with APL’s policies and requirements around VGM submission going forward. 

 

In light of the universally applicable ‘No VGM, No Load” policy, APL will not be able to countenance late, erroneous, or missing VGM submissions by Shippers.  In the event that the VGM for a loaded container is not received by, or is amended after, the established VGM submission cut-off time communicated by APL at the time of booking, a US$100 charge per container shall apply, as per our published AP1 Tariff.  This surcharge will be in addition to any other related costs as a consequence of the untimely VGM submission or amendment, including any re-nomination fee, storage, drayage or other incremental expenses.

 

In order to avoid consequences such as rolled cargo, missed shipments and/or incremental costs, Shippers are required to ensure timely VGM submission in strict accordance to our VGM submission requirements and processes. 

 

APL has developed a comprehensive offering of tools and online resources at APL.com/VGM to support your efforts in complying with VGM.  If you need any clarification, please do not hesitate to contact APL Customer Support via phone at 1-800-999-7733 or via email at APL_US_CS@apl.com.  

 

We thank you for your continued support and understanding.

 

APL