solas verified gross mass regulations

SOLAS Verified Gross Mass Regulations

Thomas H. Belknap, Jr.

Partner, New York

IBA Annual Conference – Washington D.C., September 2016

EVENING STAR – AUGUST 2011

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IS IT A VESSEL?

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WHY WE’RE REALLY HERE …

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1. What are the SOLAS VGM Regulations?

2. US Coast Guard Response

3. U.S. Terminal Response

4. USCG Enforcement

PRESENTATION ROADMAP

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4. USCG Enforcement


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International Convention for Safety of Life at Sea- Origins of treaty date back to Titanic (1912)- Pre-dated International Maritime Organization (1958)- New SOLAS treaty (1960) went into effect in 1965

SOLAS (1960) was amended six times through 1973

But: Amendments required 2/3 acceptance by contracting states – none of the 1966-73 amendments ever came into force

History of SOLAS

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Current SOLAS Convention adopted in 1974

- Came into force in 1980

- Principally consolidated and incorporated 1966-1973 amendments to SOLAS (1960)

- Currently: 162 signatories; 99% of global merchant tonnage

- Changed amendment procedure to “Tacit Acceptance” approach

SOLAS (1974)

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- Tacit Acceptance: amendment to Annexes (technical parts of Convention) will be “deemed to have been accepted” two years after publication unless objected to by:

(a) one-third of Contracting States; or

(b) Contracting States owning at least 50% of world’s gross merchant tonnage

SOLAS (1974)

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Chapter I – General Provisions Chapter II-1 – Construction Chapter II-2 – Fire protection, fire detection and fire extinction Chapter III – Life-saving appliances and arrangements Chapter IV – Radiocommunications Chapter V – Safety of navigation Chapter VI – Carriage of Cargoes Chapter VII – Carriage of dangerous goods Chapter VIII – Nuclear ships Chapter IX – Management for the Safe Operation of Ships Chapter X – Safety measures for high-speed craft Chapter XI-1 – Special measures to enhance maritime safety Chapter XI-2 – Special measures to enhance maritime security Chapter XII – Additional safety measures for bulk carriers Chapter XIII - Verification of compliance. Makes mandatory from 1 January 2016 the IMO

Member State Audit Scheme. Chapter XIV - Safety measures for ships operating in polar waters.

SOLAS (1974 – Technical Provisions)

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Chapter I – General Provisions Chapter II-1 – Construction Chapter II-2 – Fire protection, fire detection and fire extinction Chapter III – Life-saving appliances and arrangements Chapter IV – Radiocommunications Chapter V – Safety of navigation

Chapter VI – Carriage of Cargoes Chapter VII – Carriage of dangerous goods Chapter VIII – Nuclear ships Chapter IX – Management for the Safe Operation of Ships Chapter X – Safety measures for high-speed craft Chapter XI-1 – Special measures to enhance maritime safety Chapter XI-2 – Special measures to enhance maritime security Chapter XII – Additional safety measures for bulk carriers Chapter XIII - Verification of compliance. Makes mandatory from 1 January 2016 the IMO

Member State Audit Scheme. Chapter XIV - Safety measures for ships operating in polar waters.

SOLAS (1974 – Technical Provisions)

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SOLAS Amendment VI/2

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“4. In the case of cargo carried in a container … the gross mass … shall be verified by the shipper, either by:

.1 weighing the packed container using calibrated and certified equipment; or

.2 weighing all packages and cargo items, including the mass of pallets, dunnage and other securing material … and adding the tare mass of the container … using a certified method approved by the competent authority of the State in which packing of the container was completed.”

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5 The shipper of a container shall ensure the verified gross mass is stated in the shipping document. The shipping document shall be:

.1 signed by a person duly authorized by the shipper;

.2 submitted to the master or his representative and to the terminal representative sufficiently in advance, as required by the master or his representative, to be used in the preparation of the ship stowage plan.

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“6. If the shipping document, with regard to a packed container, does not provide the verified gross mass and the master or his representative and the terminal representative have not obtained the verified gross mass of the packed container, it shall not be loaded on to the ship.”

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Effective Date: July 1, 2016

SOLAS REGULATION VI/2

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4. USCG Enforcement


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US COAST GUARD RESPONSE – APRIL 28, 2016

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“For the purposes of determining the VGM of a container, any equipment currently being used to comply with Federal or State laws, including the Intermodal Safe Container Transportation Act and the container weight requirements in 29 CFR 1918.85(b), are acceptable for the purpose of complying with SOLAS.”

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29 CFR § 1918.85 Containerized cargo operations

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U.S Labor Regulations:

(b) Container weight. No container shall

be hoisted by any lifting appliance unless

the following conditions have been met:

***

(3) Every outbound container received at a

marine terminal ready to load aboard a

vessel without further consolidation or

loading shall be weighed to obtain the

actual gross weight, either at the terminal

or elsewhere, before being hoisted.

29 CFR § 1918.85 Containerized cargo operations (Con’t)

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(4)(i) When container weighing scales are

found at a marine terminal, any outbound

container with a load consolidated at that

terminal shall be weighed to obtain the

actual weight before being hoisted.

(ii) If the terminal has no scales, the actual

gross weight may be calculated from the

container's contents and the container's

empty weight. The weights used in the

calculation shall be posted conspicuously

on the container, with the name of the

person making the calculation, and the

date.

So, Two Ways To Comply In US:

1: Shipper supplies VGM via one of the two approved methods under SOLAS

Or

2: Following US Regulations for weighing containers upon entry to port

Implementation

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1. What are the SOLAS VGM Regulations?2. US Coast Guard Response3. U.S. Terminal Response4. USCG Enforcement

Presentation Roadmap

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Three Initial Approaches to weighing at ports:

1. Free VGM Weighing Services at Entry to Port Georgia, Baltimore

2. VGM Weighing Services, for a Fee New York/New Jersey

3. No VGM Weighing Services Long Beach, Los Angeles, Oakland, Houston

US Ports Response – April/May 2016

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B Y J U N E 1 , W E S T C OA S T P O R T S A N N O U N C E D T H E Y WO U L D W E I G H C O N TA I N E R S A N D S U P P LY W E I G H T S TO C A R R I E R S

Evolving

Approach28

FMC Press Release – June 27, 2016

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FMC Approved Port Operations and Safety Discussion Agreement on expedited basis

“ … permits six operating port authorities located on the U.S. Atlantic and Gulf Coasts (Georgia; Houston; Massachusetts; North Carolina; South Carolina; and Virginia) to take the weight of a container determined at a terminal gate and report it to an ocean carrier for the purposes of satisfying new amendments to the Safety of Life at Sea (SOLAS) Treaty mandating the reporting of the Verified Gross Mass (VGM) of a container.”

(http://www.fmc.gov/NR16-10/)

http://www.fmc.gov/NR16-10/

PORT RESPONSE

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PORT RESPONSE

“Ports America Chesapeake will continue to weigh all export containers received at its Port of Baltimore Terminal gates. These weights will be provided directly to the ocean carriers.”

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PORT RESPONSE

“The United States Coast Guard has declared that weights obtained through this procedure are equivalent to the Verified Gross Mass (VGM) required by SOLAS.”

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PORT RESPONSE

“Effective July 1, 2016, by shippingcontainerized cargo through PortsAmerica Chesapeake’s terminals,shippers authorize use of these gateweights to satisfy their VGMobligations. In addition shippers mayalso choose to provide the VGMdirectly to their ocean carriers. Thisweight will be used as a VGM, andthe container will be loaded on thevessel unless otherwise instructedby the Carrier outside of thisprocess.”

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1. What are the SOLAS VGM Regulations?2. US Coast Guard Response3. U.S. Terminal Response4. USCG Enforcement

Presentation Roadmap

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In March 2016, Rear Admiral Paul Thomas of the USCG surprised industry:

Said SOLAS is a “treaty that applies to ships” and Congress has given the Coast Guard two functions to perform under the SOLAS treaty:

“The first is we’re the designated flag state authority, which means we’re responsible to ensure that ships that fly the U.S.-flag are in compliance with SOLAS.”

“The second is we are the port state authority, which means that we’re responsible to verify ships that fly foreign-flags in U.S. waters are substantially in compliance with SOLAS as verified or certified by their flag states.”

“The interesting thing there is that none of that has anything to do with shippers or terminal operators.” The Coast Guard does not have the authority to “regulate or require under SOLAS anything from domestic terminal operators or shippers.”

US Coast Guard Enforcement

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“The Coast Guard, in the normal course of vessel inspections under its flag state and port state control authorities, will continue to verify that ships’ masters receive the VGM of containers in order to ensure that ships are loaded safely and operate within their structural and stability safety limitations.”

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As a practical matter:

Regulation of ships = Regulation of shippers


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THIS STILL LEFT OPEN THE QUESTION:

WO U L D T H E C A R R I E R S AC C E P T U N S I G N E D W E I G H T DATA F R O M U. S . P O R T S A S C O M P LY I N G W I T H S O L A S VG M R E Q U I R E M E N T S ?

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Following USCG “Equivalency”position, FMC strongly urged carriers to accept port terminal container weights as SOLAS VGM:

Federal Maritime Commission Response

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Chairman Mario Cordero:

“There is a course to SOLAS VGM compliance provided by the Coast Guard that is not only not burdensome, it requires no additional action at all. Why anyone would add procedures, requirements and costs to doing

business is not only puzzling, it raises the specter of anticompetitive behavior and necessitating Commission action.”

FMC June 16, 2016 Press Release

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Ocean Carrier Equipment Management Association (OCEMA) – association of 19 major US and foreign ocean common carriers

Issued “Recommended Best Practices” guide

OCEMA members would accept terminal weights for VGM

OCEMA Best Practices – June 28, 2016

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Special thanks to my colleagues

Jon Waldron: Patricia O’Neill:

Who helped me put this presentation together.

Acknowledgements

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SOLAS Verified Gross Mass Regulations

Thomas H. Belknap, Jr.

Partner, New York

IBA Annual Conference – Washington D.C., September 2016

solas verified gross mass regulations

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