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Do You Really Understand VGM? Misreporting Could Lead to Heavy Penalties!

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Posted by Realhong (Shanghai Head Office) International Logistics Co., Ltd On Oct 14 2024

(International Logistics & Freight)

What is VGM?

VGM (Verified Gross Mass) refers to the verified total weight of a container, which includes the weight of the cargo, packaging materials, and the container itself. According to the SOLAS (Safety of Life at Sea) Convention established by the International Maritime Organization (IMO), since July 1, 2016, shippers globally must provide the VGM of containers before they are loaded onto a vessel. This regulation ensures that the weight data of containers are accurate, preventing potential safety issues caused by incorrect container weight, such as vessel capsizing or containers falling overboard.

Due to the widespread issue of inaccurate weight reporting in container shipping, IMO introduced the VGM requirement to enhance cargo safety and protect the lives of crew members. Shippers are responsible for providing accurate VGM, and failure to comply with this regulation can result in containers being denied loading or even facing fines or delays.

 

Methods for Calculating VGM

 

When shippers provide VGM, they can calculate the total container weight using one of the following two methods:

1. Weighing the packed container:

This is the most direct method, where the fully loaded container is weighed to determine its total weight. This method is simple and reliable, especially for cargo with complex packaging or weight that is difficult to estimate accurately. Weighing can be done at specialized weighing stations or port facilities.

2. Calculating by adding weights:

This method involves weighing all the cargo and packaging materials separately and then adding the weight of the empty container. This method is suitable for shippers who can precisely control the weight of the cargo, such as bulk goods or goods packed through standardized factory processes. When using the calculation method, shippers must ensure that the weight data at every step is accurate to avoid errors.

 

(International Logistics & Freight)

(International Logistics & Freight)

 

Permissible Error Range for VGM

Although high accuracy is required for VGM, some margin for error is allowed in practice. The permissible range of error varies by country, but it is generally within 5% or ±500 kilograms (whichever is smaller). The exact permissible error range depends on the regulations of the specific port and shipping company. Therefore, shippers must carefully verify and minimize errors when providing VGM to avoid unnecessary delays or additional charges.

 

(International Logistics & Freight)

(International Logistics & Freight)

 

Consequences of Misreporting or Concealing VGM

The consequences of misreporting or concealing VGM can be severe, involving both safety risks and financial penalties. If shippers fail to provide accurate VGM, the following consequences may arise:

1. Container not allowed to be loaded:

If the VGM is not submitted on time, ports and shipping companies have the right to refuse loading the container, causing delays in shipping. This not only affects the efficiency of the entire supply chain but can also incur additional storage and transportation costs.

2. Financial penalties and liability:

Misreporting or concealing VGM may result in fines from shipping companies or ports. Additionally, if incorrect VGM leads to an accident, the shipper may be held legally responsible and liable for compensation for any resulting damages.

3. Safety hazards:

Incorrect or concealed VGM can directly threaten the safety of the vessel. If the actual weight of the container exceeds the vessel’s designed carrying capacity, it may lead to vessel instability, listing, or even capsizing. Furthermore, improperly loaded containers may fall overboard, posing a threat to the safety of the crew.

 

END

(International Logistics & Freight)

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If you're in search of a reliable freight forwarding company, consider Realhong International Logistics. We are committed to offering you the best prices and the highest quality service!

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(International Logistics & Freight)

(International Logistics & Freight)

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