NEW YORK: US Ports, rated by Fitch Ratings, have neither
designated facilities for weighing containers nor the systems for the
verification of container weights, the rating agency said, putting to question
their ability to implement the International Maritime Organization's requirements
on verifying weights of shipping containers.
As a result, the rating agency believes that this
could raise already chronic congestion at the ports that are slowed by chassis
management issues, higher cargo loads from larger vessels and inadequate inland
or intermodal links.
Beginning on July 1, 2016, an amendment to the
International Convention for the Safety of Life at Sea (SOLAS) will require the
verified gross mass (VGM) of packed containers to be documented before carriers
or terminal operators can load them. Carriers and terminals will be required to
receive the VGM in time to use it to make the stowage plan for loading the
ship.
While the shipper on the bill of lading will bear
responsibility for verifying the weight, the apportionment of logistics and
costs of verification among shippers, forwarders, terminals and carriers
remains to be seen. The exact nature of documentation is also unknown, though
forwarders and terminals favor the use of electronic data interchange systems
that already communicate bookings and shipping instructions for about half of
the 300,000 containers moved in the US daily.
US Port terminals will almost certainly face
containers at their gates that lack the required verification as the SOLAS
amendment goes into effect, Fitch said.
“This may lead to delays and increased congestion for
facilities that are already strained by longer turn times and heightened
volumes generated by ever larger container ships. A slowdown seems likely in
the early days of SOLAS enforcement as the broader supply chain learns how to
manage compliance,” the rating agency went on to say. Several US terminals,
including the Maher terminal at Port of New York/New Jersey, said they will
require prior receipt of electronic documentation before allowing containers
through their terminal gates. Some ports may choose to offer weighing services
at their facilities, though higher volume terminals operators have indicated
this is not likely to be a practical solution.
“Over the longer term, we believe the risk posed to
Fitch-rated US Ports by the VGM mandate will decline. For smaller ports
choosing to offer weighing services to delinquent containers, capital outlays
to provide calibrated weighing equipment should be manageable. Forwarders and
larger carriers will likely force the market to move toward an electronic
industry standard that may ultimately lead to more efficient data management in
terminals. We expect overall port throughput to rise in 2016, driven by
industry consolidation favoring larger ships and implementation of operational
alliances by shipping lines and ports,” Fitch concludes.
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