The mandatory Verified Gross Mass (VGM) requirements for shipping containers, now enforced worldwide under SOLAS amendments, present both challenges and opportunities for international trade participants. Port operators and cargo owners alike face critical decisions about compliance strategies that could either streamline operations or create logistical bottlenecks.
VGM Compliance: A New Operational Challenge for Ports
The SOLAS convention amendments require verified container weights before loading, necessitating close collaboration across supply chains. Port operators bear particular responsibility for collecting and transmitting VGM data to carriers for proper vessel stowage planning. Failure to implement effective VGM processes risks cargo delays, port congestion, and even maritime safety hazards.
UK Ports: Proactive Weighing Solutions
Major UK port operators like DP World and Hutchison Ports have implemented container weighing services to facilitate compliance. DP World's London Gateway and Southampton terminals weigh containers upon arrival, automatically generating VGM data to simplify the process for shippers.
"The industry faces challenges in providing verified container weights, making terminal solutions crucial," said Rene Krikke, DP World's Regional CEO for Europe and Russia.
Similarly, Hutchison's Felixstowe port introduced weighing services. Chief Operating Officer Steven Abraham noted, "The new regulations could disrupt export supply chains, so we've implemented weighing services to prevent this."
US Ports: Infrastructure Challenges Emerge
American ports face greater implementation difficulties, with Fitch Ratings noting many lack necessary weighing infrastructure. This deficiency threatens to exacerbate existing congestion issues, particularly as larger vessels concentrate cargo volumes.
Some terminals, like Maher Terminals in New York/New Jersey, require advance electronic documentation before gate entry. However, most operators, including APM Terminals, consider terminal weighing services impractical.
APM Terminals' Data-Driven Approach
APM Terminals prioritizes operational efficiency through data integration. "We need VGM data during stowage planning to ensure safe stacking," explained Jack Craig, Vice President of Operations. The company collaborates with data exchange providers to process VGM information without creating gate bottlenecks.
While not ruling out future weighing services, APM Terminals focuses on maintaining fluid operations through digital solutions rather than physical infrastructure investments.
Strategic Comparisons and Supply Chain Impacts
The UK's service-oriented approach simplifies compliance but increases port costs, while the US strategy shifts burdens to shippers. APM's digital focus requires robust data systems but minimizes physical disruptions.
VGM implementation brings both safety improvements and operational complexities. Effective compliance demands coordinated efforts across supply chains, with digital transformation emerging as a critical enabler.
Digital Transformation: The Compliance Imperative
IoT sensors, big data analytics, and cloud platforms enable real-time weight monitoring and predictive capabilities. These technologies improve data accuracy while reducing compliance costs and processing times.
Strategic Recommendations
Industry participants should consider these approaches:
1. Enhance supply chain collaboration through shared data platforms
2. Optimize workflows to streamline VGM processes
3. Invest in digital monitoring and analysis capabilities
4. Select port partners based on compatible VGM strategies
Through these measures, organizations can navigate VGM requirements while maintaining supply chain efficiency and competitive advantage.