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Breaking Alert



Breaking Alert

July 01, 2016

Dear Valued DGX Customers:
There have been several changes over the past few weeks regarding how VGM’s will be handled for US Exports, and we would like to advise you of the current status.
The International Maritime Organization (IMO) has adopted amendments to the Safety of Life at Sea (SOLAS) Convention to mandate the Verified Gross Mass (VGM) for proper stowage of containers on a vessel effective July 1, 2016. The rule remains the same, in that, it is the shippers’ responsibility to obtain and provide the VGM to the ocean carrier in accordance with local government guidelines as per the carrier’s cut-off.
What has changed is the method in which the VGM will be submitted to the Carrier’s, since the U.S. Coast Guard (USCG) declared equivalency, whereas the existing terminal weighing practice for on-dock scales in the United States has been confirmed by the USCG to be compliant with SOLAS regulation - all U.S. marine terminals are now allowed to use their certified scales to record the VGM.
Most carriers will accept the “Terminal Weighing Approach” to derive a compliant VGM for stowing the containers. Under this approach, the ocean terminal operators in the U.S. would weigh containers moving through their truck gates and provide the gross container weights to the Carrier’s, eliminating the need for Shipper’s to submit the VGM separately.
However, the “Terminal Weighing Approach” excludes on-dock rail or intermodal containers due to the lack of appropriate scales and processes at most U.S. terminals to handle the weighing of containers arriving in this mode.  As such, VGM would be required for these moves, or in the event the Carrier does not accept the Terminal Weighing approach.  This means, shippers are still required to submit VGM to DGX for container shipments moving under the above excluded modes, or in the event the Carrier does not accept the terminal weighing method. At this point the Carriers have not all announced their acceptance, and the situation is fluid. We will notify you of the Carriers decisions next week.
The cut-off for submitting the VGM to the Carrier will depend on the individual Carrier and their cut-off times. As such, we will require the VGM to be provided to DGX for FCL (full container load) shipments within 24-hours before the announced VGM cut-off by the Carrier. The VGM must be presented electronically to DGX, by email to your booking agent, noting the VGM in the body of the SLI or Bill of Lading instructions, or by completing a VGM Certificate.
The required information for reporting the VGM for FCL shipments is as follows:
·                DGX Booking Number
·                Container number
·                Unit of Measurement
·                Date
·                Name of Authorized person authorized by Shipper to declare the VGM
·                VGM
Lastly, the VGM fees previously announced by DGX will be updated to adopt the Terminal Weighing Approach, as follows:

VGM Admin Fee 7/1/16 From United States to all destinations, when the Carrier does not accept the terminal weighing approach. LCL Fees CANCELLED
AMENDED: FCL: USD $10 per container, minimum of $25 per Bill of Lading.
Scale Fee 7/21/16 From United States to all destinations, when the Carrier does not accept the terminal weighing approach. LCL Fees CANCELLED
FCL: USD $25 per container plus any and all additional third party charges (obtaining actual weight certificate, additional dray, demurrage, waiting time, repositioning, chassis fees etc.), when Shipper requires DGX to weigh the container to verify the gross mass.

Should you have questions, please contact your local office to speak with a DGX Representative, or call us at 1-888-488-4888, or go to our contact page
Thank you for your business – we appreciate it!
Brad Dechter

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