The incorrect weight of a container might give rise to a larger concern than amending a shipping document.
The Verified Gross Mass (VGM) is critical in container shipping because the verified weight of a packed container plays a crucial role in making decisions about vessel loading and sea traffic. If the VGM is not submitted on time or is not accurate, the shipment may be subjected to additional verification, delays or might miss the sailing.
In this blog by Sharp Blue, we will discuss what happens when a VGM is missing or incorrect, what transpires in the event of initial VGM errors, what delays and costs may be incurred, and how erroneous VGM may lead to cargo rolling to a later sailing date. In addition, we will review the two methods of determining VGM accepted internationally and discuss what exporters can do in practice to avoid the problem.
What Is VGM and Why Does It Matter?
The term VGM means Verified Gross Mass. Simply put, it is the verified gross weight of a container. However, it is not only about the weight of the goods. VGM calculation takes into account all the components of the packed container, such as cargo and relevant packing, pallets, dunnage, securing materials, as well as container tare depending on the method used to find VGM.
VGM requirement appeared due to the amendments to the International Convention for the Safety of Life at Sea (SOLAS), which became effective from 1 July 2016.
The reason is quite simple: the information provided must show accurate weight of cargo for the purpose of proper vessel load and stowage.
In compliance with SOLAS, if a packed container has not been furnished with the VGM relevant to it well enough in advance to allow for stowage planning, it may not be accepted for loading.
For Australian exporters, this requirement is implemented by means of the Marine Order 42, administered by the Australian Maritime Safety Authority (AMSA).
That’s why VGM is more than just another shipping requirement to comply with. The weight must be accurate and verified and provided at the right time if the cargo is to be deemed acceptable for loading.
What Does This Mean for Australian Exporters?
In Australia, these regulations have been enacted through Marine Order 42 (Carriage, stowage and securing of cargoes and containers) 2016.
It is the shipper’s duty to acquire the VGM and submit it in the relevant shipping documents before the container is loaded.
A freight forwarder or any third party may assist with obtaining and submitting the VGM on behalf of the shipper, but exporters must understand who is accountable for obtaining the weight and who submits it.
The important takeaway here is that the VGM process requires a clear owner, accurate information and sufficient lead time.
What Happens If Your VGM Is Missing or Wrong?
The outcome relies on whether the VGM was missed, submitted late, or erroneous weight has been indicated.
- A Container Can’t Be Loaded
A packed container cannot be loaded on a ship unless it has the obligatory VGM. In the absence of receiving a VGM on time for the ship’s stowage planning, the container may be not allowed to be loaded as a result. This means that a missing VGM can turn into a real shipment problem and not just a paperwork issue. - The Weight May Need to Be Verified or Re-Checked
If the VGM claim is challenged or a difference is discovered, it could be necessary to perform extra weighing or checking to verify it. For example, the shipment could be re-weighed to determine the accurate gross weight. The possible methods would depend on the situation and the agreements between the involved parties. A re-weigh could eliminate the root weight problem, but it must be done at the right time. If the problem occurs too close to the moment of loading, it might not be possible to do everything on time. - The shipment may experience delays or miss its scheduled sailing.
The VGM problem may include much more than just the weighing process itself. The shipper, freight forwarder, carrier, terminal, or weighing service provider might have to communicate with one another and rectify the necessary records before the container is allowed to move on. If the issue is detected in time, it might be resolved in a short period of time. If it appears right before the cut-off time or the loading process, there might not be enough time for correcting the issue. If the issue is not properly dealt with before the vessel arrives, it might lead to skipping the scheduled sailing date, and the container would be sent for the next sailing process. This will result in changing the expected delivery date, which means that modifications will also have to be made in other stages of the shipment process. - Possible Extra Expenditure
There isn’t a specific ‘VGM fine’ that is applied voided incorrect statements. Depending on the nature of the case, carrier terminal policies and events affecting the shipment, the costs could be as follows: -
- Costs of re-weighing
- Charges for paperwork and amendments
- Additional handling at the terminal
- Charges for storage
- Detention or demurrage (whenever there is an application of that)
- Additional transport or handling costs
The charges mentioned will not necessarily appear with every VGM error. The exact charges will depend on the company providing its services, charges set by the terminal, location, and other details of the shipment. It is essential that you understand that incorrect reporting can lead to expenses which will not occur in cases when the only problem is incorrect data in the shipping papers.
What Is Rolled Cargo and How Can VGM Cause a Roll?
The shipping industry uses the term rolling to refer to containers which do not sail on their scheduled voyages and are to be sent by a later ship.
Nevertheless, rolling does not mean that the cargo has been rejected forever.
There are cases when a VGM issue can lead to a roll; this happens when necessary weight information cannot be verified or corrected on time for the loading process.
The sequence looks like this:
VGM not available/correct → problem identified → verification/correction required → not enough time to load the cargo → sailing missed → new sailing scheduled.
In the long term, the consequences can go beyond the ship’s schedule.
New delivery dates may impact:
- Inland transportation arrangements;
- Receiving schedules in warehouses;
- Inventory management;
- Production plans;
- Commitments to customers.
Missed sailing can have wider implications for a supply chain in case of cargo requiring fast delivery.
Why Do VGM Errors Happen?
VGM issues can often arise from simple blunders. However, the bright side is that a proper method could avoid many of them.
- Estimation as a substitute for verification: Using an estimated figure for the weight without obtaining an accurate measurement of the weight of the loaded container carries the potential risk that the VGM stated will differ from the actual gross weight. Equipment used in Australia for weighing and obtaining VGM must comply with the required standards of accuracy.
How to avoid it: Utilize the relevant weighing technique and the correct equipment instead of estimation.
- Weighing the cargo and forgetting about the container: This is one of the simplest processes that is often misunderstood. While the weight of the cargo can equal to 24000 kg, the weight of the empty container must also be taken into consideration.
How to avoid it: Ensure that the calculation is carried out considering the weight of the relevant cargo as well as pallets, packing materials, dunnage and securing materials.
- Using the Wrong Tare Weight: The use of Method 2 entails that a wrong tare weight influences the VGM accordingly.
How to prevent it: Verify the tare weight associated with the particular container before employing the formula.
- Entering a Wrong Container Number, Weight or Unit: While the weighing process may be done properly, the VGM might still be erroneous, if the entered data is wrong. One of the errors resulting in incorrect information submission could be that the weight was recorded against the wrong container number or that some erroneous unit was used.
How to avoid the problem: Check the container number, weight and unit before the submission of the VGM.
- Delayed Submission of the VGM: If you submit your VGM too late, your accurate VGM may turn into an operational issue. This information must be provided in advance in order to be used in the stowage plan of the vessel. Carrier and terminal cut-off times might be in effect.
How to avoid it: To ensure that this does not happen, think of the VGM as being part of the shipment and submit it ahead of time instead of right before the cut-off.
- Forgetting to Perform the Final Weight Check: Performing a final check internally can catch any mistakes before the container arrives at the terminal. Before sending it out, make sure that the following is confirmed:
- It has the right container number.
- It has the right VGM weight value.
- The correct weighing method was used.
- The necessary supporting information regarding the weight is available.
- The information was submitted on time.
Keeping proof records may be beneficial. According to Australian Maritime Safety Authority (AMSA), shippers should be prepared to prove how the VGM was calculated.
Method 1 vs Method 2: How Is VGM Calculated?
In Australia, two ways to obtain the VGM are according to their requirements.
Method 1: Weighing the packed container
This method sees the packed container being weighed. The packed container is being weighed using equipment capable of satisfying the relevant accuracy standards. The measurement taken represents the gross mass of the packed container. The method may be applied where weighing the contents individually is difficult or impractical.
Method 2: Measure the Contents and Tare
In Method 2, one measures the contents of the package and adds the tare weight of the package.
The calculation needs to include the relevant load and materials (including pallets,) dunnage and packaging and securing items as applicable.
No one method of weighing is superior; the choice depends on the cargo and the situation at hand.
In certain cases, whether it is feasible to weigh the components can be questionable. The AMSA points out that Method 2 is not suitable for any commodity types (for example: processed grain that has not been put into bags and scrap metal). In such cases, Method 1 is required. This point is especially important for exporters dealing with agricultural goods, bulk products, and commodities for which the weighing of components is impossible.
An example for VGM :
Take a container with the following weights:
Cargo: 24,000 kg
Pallets, packing and securing materials: 300 kg
Container tare: 3,800 kg
So:
24,000 + 300 + 3,800 = 28,100 kg
The VGM will be: 28,100 kg
If the exporter reported the weight as 24,300 kg, the tare was not included.
In this situation, the number reflects cargo and packing, but it does not reflect gross weight of loaded container.
That is why VGM is not simply “the weight of goods.”
How to Avoid VGM Problems
Having an effective VGM procedure doesn’t have to be complex.
The secret is to incorporate a number of safeguards into the export procedure.
- Ensure that the preferred VGM approach fits in with the shipment and situation.
- Utilize correct weighing equipment which adheres to the respective specifications.
- Make sure that you include needed weight components which don’t comprise only of the actual cargo.
- Confirm container tare when implementing Method 2.
- Double check container number, weight and unit ahead of shipping.
- Submit VGM before cut-off time set by carrier and terminal.
- Maintain evidence of the process used to establish the VGM.
The sooner such checks can be done, the more time can be saved and mistakes fixed.
How Sharp Blue Assists in Overcoming VGM Delays
The VGM is just one part of the larger process of shipping imports, meaning that it needs to coincide with the booking, container, paperwork and the various cut-off points.
At Sharp Blue we manage shipping documentation, information and communications related to water freight, allowing us to know about any lacking information or timing concerns before it influences container movement.
While the responsibility to provide the VGM does rest with the shipper, Sharp Blue takes care of the entire exportation between the origin and destination points.
Conclusion:
Even though VGM may only be one component of container transportation, an inaccurate, missing, or late VGM can impact the movement of the whole shipment. In case the problem cannot be solved in a timely manner, the container will not be able to reach its destination on schedule.
Thus, Australian exporters need to prioritize VGM as part of their entire shipping process instead of treating it merely as another document requirement.
At Sharp Blue, we assist the organizations in coordinating the sea freight, documentation, and shipping process from the place of origin to the destination, thus ensuring a smooth shipping process.
