For some key players of the supply chain, the new regulation announced by the International Maritime Organization (IMO) and The International Convention for the Safety of Life at Sea’ (SOLAS) about container verified Gross Mass (VGM) could represent another obstacle for their operation, but according to an article published by The Mover, the Insurance Industry “undoubtedly” welcomes this new amendment, since losses originated by the loading and unloading of containers are frequently caused by inaccurate declarations of container weights.
According to The Mover, SOLAS regulations will have little or no repercussions on insurance premiums. This could even help see reductions in the long term. However, new products and policies might be necessary in the case of losses from incorrect disclosure or non-disclosure of VGM.
The insurance industry remains in line with expectations about the effects of these new measures.
THE SOLAS REGULATIONS
Beginning on July 1st, all shipping containers must have their weight verified (VGM) before being loaded onto a ship.
The measure stipulates that there are two ways to verify the weight of a shipping container: 1. By weighing the container packed 2. Combining the weight of the shipping container (tare weight) and its content separately, including packaging. All this has inevitable implications for intermodal movers, along with the risk that containers could not be loaded on board the ship if they don´t meet the requirements.
IMO amendments seek to avoid accidents caused by an incorrect weight distribution on container ships, which could put at risk the cargo, the crew and even the vessel. According to a study from Jade Logistics, 20% of the container ships could have inaccurate declarations. Marine Accident Investigation Branch (MAIB) an organization that investigates marine accidents involving UK vessels worldwide, has reported that these mistakes could be produced by the lack of appropriate facilities for the weighing process. Inaccurate declarations could also be intentionally made as a way to avoid taxes and make the most of the container capacity.
If you want to know more about SOLAS regulation, click here.
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