Agriculture Group Will Back 'Rational' VGM Method in Upcoming House Hearing

The "rational" approach comprises U.S. exporter cargo and dunnage weight certifications, steamship line container weight certifications, and a combination of the two weights by the steamship line to calculate a VGM to be submitted to the marine terminal operator (MTO) before loading. The AgTC's preferred method differs from the Ocean Carrier Equipment Management Association (OCEMA) recently adopted a “best practice” process document to meet the VGM requirements, which will enter into force on July 1 (see 1603220018). OCEMA's "best practice" would impose “cutoff times” for VGM submission and cargo receiving, meaning containers could not be loaded aboard vessels if shippers do not provide VGMs before the VGM cutoff time. The method would hold shippers liable to ocean carriers for failure to provide VGM.

AgTC said OCEMA's procedure would bring unnecessary costs, port congestion, angry foreign customers, and missed sailings. Such procedures would also result in spoiled cargo and delayed shipments while U.S. farmers and exporters are suffering in global markets due to the high value of the dollar, the trade group said. “It continues to appear that the World Shipping Council and the OCEMA ocean carrier organization are refusing to consider any means of implementation other than their approach: demanding that an individual employee in the US exporting company, such as a farmer or food processor, be personally liable to certify the weight of the ocean carrier's own container and send that certification to that same ocean carrier! (sounds like ‘Alice in Wonderland,’ doesn’t it?),” AgTC said.

The coalition plans to ask Congress to explore several aspects of the SOLAS VGM amendments. Specifically, Congress should look at the economic impacts of OCEMA’s “best practices” compliance method, whether the Coast Guard can gain revisions or revocation of the amendments through the International Maritime Organization, and the justification for how such a requirement “can be imposed on the US, without any prior Congressional notice, review or approval.”

AgTC also criticized WSC’s witness for the hearing, WSC CEO John Butler, who it described as a “Washington DC attorney.” Donna Lemm, who chairs the AgTC SOLAS Committee and has "extensive experience in ocean shipping practices," will represent AgTC, it said. AgTC said is “ready and eager” to engage directly with carriers without outside interference. “We need to move past this lawyer-driven adversarial situation; the SOLAS container weight issue is an opportunity to do so, and can be resolved if the individual carriers meet directly with their customers, the US exporters, to develop a rational means of implementation that does not inflict such injury on their customers and the US export economy,” the group said. “This ‘business to business agreement’ has been advocated by the US Coast Guard as well."

The WSC is "surprised" that AgTC is "upset" by the carriers' responses to a 2015 AgTC request for carriers to specify information transmittal methods for the "required weight information," said a WSC spokeswoman. Carriers have made "substantial progress" in crafting a standard process for VGM submissions, "and they continue to work with customers to make sure that implementation goes smoothly," the spokeswoman said. "We look forward to discussing the facts about the important safety issue of having accurate weights for packed containers being loaded on the ships that carry the import and export commerce of the United States."

Email ITTNews@warren-news.com for a copy of AgTC’s statement.