Guide: Goods and Conveyance Reporting in South Africa

A companion guide in support of increased compliance in the reporting of goods and conveyances (RCG) to Customs, South Africa.

Necessary information for – Air, Sea and Road carriers, vessel’s agents, NVOCCs, freight forwarders, Air and Sea terminal operators, container depot operators, transit shed operators and de-grouping depots. Also, all private software service providers to the trade.

The guide offers easy navigation through –

  • registration and electronic trading with SARS Customs
  • the various electronic messages mandated by law, covering import and export movements, across all modes of permissible international transportation
  • message types for each transaction type
  • scenarios to facilitate easier understanding across operators in the supply chain on how the various electronic reports are sequenced, ensuring that Customs formulates a comprehensive end-2-end view of a international trade transaction
  • reference webpages, official notifications, Customs rules and other pertinent information concerning cargo reporting.

All information is hyperlinked to SARS documentation, found on the official SARS website www.sars.gov.za

You may download the Guide below (File size: 3MB)

USCBP extends secure e-commerce supply chain pilot

Customs and Border Protection (CBP) has expanded its pilot of a new, voluntary scheme to try to improve the security of low-value shipments entering US borders.

The Section 321 Data Pilot is focused in particular on e-commerce, and aims to improve data-sharing between online marketplaces, carriers, technology firms and logistics provider to help protect American consumers from illicit goods arriving by air, ocean, truck, or rail.

That includes, “illicit narcotics, unregulated prescription drugs, brand counterfeits, and unsafe food and beauty products”, according to the CBP, which plans to run the pilot until August 2021.

Nine companies have been selected to participate in the pilot, including e-commerce giants Amazon and eBay, carriers Zulily, FedEx, DHL and UPS, as well as technology firm PreClear and logistics providers XB Fulfillment and BoxC Logistics.

CBP has said that it plans to expand access to all interested and qualified participants “in early 2020.”

The participants will provide cargo origin, content, tracking, recipient and other information to CBP upfront, in addition to the information that is currently legally required for Section 321 shipments – in other words one shipment per day for eligible importers, individuals or companies with a value of $800 or less.

CBP says it wants to see whether having that additional information will enable it to perform “more effective and efficient targeted screening” of these low-value shipments.

Research published in 2018 has suggested that two-thirds of counterfeit goods intercepted by customs around the world are discovered in small parcels sent through postal or courier services.

In part because they are harder for customs officials to track and seize, and also because in many jurisdictions they have not required detailed manifests for their contents. The US stepped up the manifest requirements for Section 321 shipments from January 1, 2019.

CBP broadened the scope of the 321 Data Pilot last month, shortly after the pilot was launched in August, to include ocean shipments and international mail which weren’t included in the original plan.

“Combined with the exponential growth of the online shopping market in the US over the past five years, CBP has seen a significant increase in small, low-value packages,” said the agency in a statement.

“Today, CBP processes more than 600 million express consignment and international mail shipments a year – approximately 1.8m a day. The unprecedented growth in volume of these low-value shipments requires creative solutions to interdict illicit and dangerous products to enter the US.”

Source: article by Phil Taylor, Securityindustry.com, 20 January 2020

Trade Lens – Maersk and IBM implement their jointly developed blockchain-based solution

TradeLens

Maersk and IBM have introduced their global blockchain solution TradeLens, with 94 organizations already participating. The companies announced their joint venture in January this year after collaborating on the concept since 2016.

Early adopters include more than 20 port and terminal operators across the globe, including PSA Singapore, International Container Terminal Services Inc, Patrick Terminals, Modern Terminals in Hong Kong, Port of Halifax, Port of Rotterdam, Port of Bilbao, PortConnect, PortBase and terminal operators Holt Logistics at the Port of Philadelphia. They join the global APM Terminals’ network in piloting the solution at over 230 marine gateways worldwide.

Pacific International Lines has joined Maersk Line and Hamburg Süd as global container carriers participating. Customs authorities in the Netherlands, Saudi Arabia, Singapore, Australia and Peru are participating, along with customs brokers Ransa and Güler & Dinamik.

Participation among beneficial cargo owners has grown to include Torre Blanca / Camposol and Umit Bisiklet. Freight forwarders, transportation and logistics companies including Agility, CEVA Logistics, DAMCO, Kotahi, PLH Trucking Company, Ancotrans and WorldWide Alliance.

TradeLens uses IBM Blockchain technology built on open standards to establish a single shared view of a transaction without compromising details, privacy or confidentiality. Shippers, shipping lines, freight forwarders, port and terminal operators, inland transportation and customs authorities can interact via real-time access to shipping data ad shipping documents, including IoT and sensor data ranging from temperature control to container weight.

Using blockchain smart contracts, TradeLens enables digital collaboration across the multiple parties involved in international trade. The trade document module, released under a beta program and called ClearWay, enables importers/exporters, customs brokers, trusted third parties such as Customs, other government agencies, and NGOs to collaborate in cross-organizational business processes and information exchanges, all backed by a secure, non-repudiable audit trail.

During a 12-month trial, Maersk and IBM worked with dozens of partners to identify opportunities to prevent delays caused by documentation errors and information delays. One example demonstrated how TradeLens can reduce the transit time of a shipment of packaging materials to a production line in the U.S. by 40 percent, avoiding thousands of dollars in cost.

Through better visibility and more efficient means of communicating, some supply chain participants estimate they could reduce the steps taken to answer basic operational questions such as “where is my container” from 10 steps and five people to, with TradeLens, one step and one person.

More than 154 million shipping events have been captured on the platform, including data such as arrival times of vessels and container “gate-in,” and documents such as customs releases, commercial invoices and bills of lading. This data is growing at a rate of close to one million events per day.

TradeLens is expected to be fully commercially available by the end of this year.

Source: Maritime Executive, original article published 2018-08-09

SARS Customs to introduce 24-hour Advance Rule and other Supply Chain reporting

SARS-RCG

Enter SARS RCG Webpage here!

This Friday, 20 April 2018, SARS Customs will implement its new Cargo, Conveyance and Goods Accounting solution – otherwise known as the Cargo Processing System (CPS). In recent years SARS has introduced several e-initiatives to bolster cargo reporting in support  its electronic Customs Clearance Processing System (iCBS), introduced in August 2013.

Followers of SARS’ New Customs Acts Programme (NCAP) will recognise that the CPS forms part of one of the three core pillars of the new legislative programme, better known as Reporting of Conveyances and Goods (RCG). The other two pillars are, Registration, Licensing and Accreditation (RLA) and Declaration Processing (DPR). More about these in future articles.  In order to expedite the implementation of the new Acts, SARS deemed it necessary to introduce elements of the new functionality via a transitional manner under the current Customs and Excise (1964) Act.

Proper revenue accounting and goods statistical reporting, can only be adequately achieved if Customs knows what goods ‘actually’ arrive, transit and exit it’s borders. Many countries, since the era of heightened security (post 9/11), have invested heavily in the re-engineering of policies and systems to address the threat of terrorism. This lead to a re-focus of resources and energies to develop risk management systems based on ‘advanced information’. SARS has invested significantly in automated systems in the last decade. Shortly, SARS it will also introduce a new automated risk engine with enhanced capabilities to include post clearance audit activities.

It should also not come as a surprise to anyone conversant with Customs practice, that international Customs standards such as the WCO’s SAFE Framework of Standards, the RKC and the Data Model are prevalent in the new Customs legal dispensation and its operational business systems.

South Africa will now follow several of its trading partners with the introduction of ‘advance reporting of containerised cargo’ destined for South African sea ports. This reporting requires carriers and forwarders to submit ‘advance loading notices’ to SARS Customs at both master and house bill of lading levels, 24 hours prior to vessel departure.

The implementation of CPS is significant in terms of its scope. It comprises some 30 odd electronic cargo notices and reports across the sea, air, rail and road modalities. These reports form the ‘pipeline’ of information deemed necessary to ensure that the ‘chain of custody’ is visible and secure from point of departure to final destination. For the first time, South Africa will also require cargo reporting in the export domain.

SARS_RCG_ Message_Schema 2018

Download a high resolution map of SARS Cargo Report Messages here!

It is no understatement that the CPS initiative is a challenge in particular to new supply chain entities who have not been required in the past to submit electronic reports. In order to meet these reporting requirements, a significant investment in systems development and training is required on the part of SARS and external trade participants. To this end, SARS intends to focus on ramping up compliance amongst all cargo reporters across all transport modalities. The first modality will be road, which is the most significantly developed and supported modality by trade since the inception of manifest reporting under the Customs Modernisation Programme. The remaining transport modalities will receive attention once road is stabilised. 

 

CargoX – World’s First Blockchain Bill of Lading

CargoX

Hong Kong-based CargoX raised $7 million through an initial coin offering to build its smart contract-based house bill of lading solution. CargoX, has designs on developing so-called smart contracts to transfer house bills of lading onto a blockchain solution it is building. House bills of lading are issues by non-vessel-operating common carriers (NVOs).

The coins, also called tokens, can be used to pay for CargoX’s smart contract solutions, but those interested in the blockchain-backed bill of lading solution can also pay with traditional currencies.

“Our platform will support all the legacy payment options with fiat money, but as we are a startup based on blockchain technologies, we are working on implementing cryptocurrency payment as well,” said CargoX founder Stefan Kukman. “There will be various service levels supported, and there will be additional features and services provided to holders and users of our CXO utility tokens.”

The ICO serves two purposes in this application. It helps CargoX raise funds as opposed to seeking venture capital investment, but the coins can also be used to transact within the solution. So, the sale of the CXO tokens is ancillary to the product offering.

That’s different from another crypto-token liner shipping model that emerged in the second half of 2017 called 300Cubits. That company issued tokens, called TEUs, to underpin a solution that would penalize shippers and carriers for no-show or overbooking behavior.

CargoX, meanwhile, said it wants to be a neutral platform for global trade documentation and is starting with the bill of lading approach. The solution comprises an app, a document exchange protocol, and a governing body, which is currently being established.

“The next step is to demonstrate the viability of our platform with a test shipment,” Kukman said.

That pilot, scheduled for the second quarter of 2018, links a logistics company with its clients on a shipment from Asia to Europe.

“Technology companies often lack the shipping and logistics expertise necessary to break into this industry,” Kukman said. “On the other hand, logistics companies venturing into the tech field may be held back by their reliance on established, old-school business practices.”

To register, CargoX collects “know your customer” and NVO license information “to establish roles and permissions on the platform.”

“Once companies register, they will receive their public and private key for signing the Smart B/Ls. This can be done in the Smart B/L distributed application provided by CargoX, or with the help of the CargoX Smart B/L API (application programming interface) integrated into the company’s system.”

That integration can take a few hours or weeks, depending on the workflow of the company, CargoX said.

The ultimate goal of bringing bills of lading to the blockchain solution is to create a common, encrypted repository of data. The secondary benefit of that process would be the potential to eliminate bank-backed letters of credit for suppliers, as the smart contract would automatically trigger payment.

“The shipping industry currently wastes billions of dollars on spending related to letters of credit, which are used in global trade as a payment guarantees,” Kukman said.

In terms of how the blockchain-backed bill of lading would function in practice, Kukman said that data will be encrypted and stored in a decentralized storage application.

“These are much safer than centralized storage, as they use the same blockchain security mechanisms as the billions of dollars worth of cryptocurrencies such as bitcoin currently in circulation,” he said. “Actual ownership (of the document) will be traded (sent) in the same way people send tokens today, from one wallet to another.”

Visit CargoX website, click here!

CargoX Whitepaper, click here!

Source: American Shipper, E, Johnson, 14 February 2014

US-China: First Agricultural Commodity traded through Blockchain

bulk-carrier

The first full agricultural commodity transaction using a blockchain platform has been completed by Louis Dreyfus Company (LDC), Shandong Bohi Industry, ING, Societe Generale and ABN Amro.

The trade included a full set of digitalized documents (sales contract, letter of credit, certificates) and automatic data-matching, thus avoiding task duplication and manual checks. Time spent on processing documents and data was reduced five-fold. The companies involved said that other benefits included the ability to monitor the operation’s progress in real time, data verification, reduced risk of fraud and a shorter cash cycle.

In the test, the Easy Trading Connect platform was used to execute a soybean shipment transaction from the U.S. to China. The transaction involved user participation on the blockchain-based platform by teams from Louis Dreyfus Company as the seller and Bohi as the buyer, with banks issuing and confirming the letter of credit. Russell Marine Group and Blue Water Shipping also participated in the process, issuing all required certificates. The U.S. Department of Agriculture provided valuable insights on how to include phyto-sanitary certificates in the process.

The Easy Trading Connect platform was first validated with an oil cargo transaction in February 2017, with the subsequent launch in November 2017 of an energy consortium aiming to offer blockchain-based services to the energy sector. The same principle was then applied to develop a blockchain-based platform tailored to agricultural commodities trading.

ING, Societe Generale, ABN Amro and other major industry players such as LDC have a long-term ambition to improve security and operational efficiency in the commodity trading and finance sector through digitalization and standardization.

“One thing is clear: the digital revolution is transforming the commodities sector,” said Gonzalo Ramírez Martiarena, Chief Executive Officer of LDC. “Distributed ledger technologies have been evolving rapidly, bringing more efficiency and security to our transactions, and immense expected benefits for our customers and everyone along the supply chain as a result. The next step is to harness the potential for further development through the adoption of common standards, and welcome a truly new era of digital trade flow management on a global level.”

Source: Maritime Executive, 3 January 2018 (Image credit: David Hundley (LDC)

ZIM Successfully Pilots First Paperless Blockchain Bill of Lading

ZIM lines

ZIM, an Israeli container shipping company, has successfully completed a blockchain document exchange pilot for paperless bills of lading using blockchain-based software from Wave to send a document that acknowledged receipt of cargo for shipment.

Wave connects all members of the supply chain to a decentralized network and allows them a direct exchange of files.

During the trial, all participants issued, transferred and received original electronic documents using Wave’s application, which manages ownership of documents on the blockchain to eliminate disputes, forgeries and unnecessary risks.

The containers, shipped by Sparx Logistics from China to Canada, were delivered to the consignees “without a hitch”, reported ZIM in an announcement about its breakthrough.

ZIM said that it is “convinced” that the blockchain technology and the Wave application is “the solution that will drive the trade to the digital era”.

The new blockchain-based system developed by Wave uses distributed ledger technology to ensure that all parties can issue, transfer, endorse and manage shipping and trade related documents through a secure decentralized network.

Wave’s application is free for shippers, Importers and Traders and requires no IT or operational changes.

Source: Port Technology (20 Nov, 2017 )

Hamburg Süd becomes first fully electronic ‘Cargo Reporter’ in South Africa

Hamburg Sud_1

Durban-based Hamburg Süd is the first shipping line – and the first South African Revenue Service (Sars) client – to be granted exemption from the requirement to submit paper manifests to local customs branches, thus becoming the first fully electronic cargo reporter.

While the electronic reporting of pre-arrival manifests to Sars has been a requirement since August 2009, shipping lines are, to date, still required to present pre- and post-arrival paper manifests to local customs branches in order to account for cargo. This was also because the data accuracy of electronic submissions varied significantly between different reporters.

Sars’ implementation of the new Manifest Processing (MPR) system in June 2016, provided industry with the mechanism to also report acquittal manifests electronically. Additionally, the system is able to match customs clearances to their corresponding cargo reports (manifests) in order to identify instances of non-reporting.

Three months after MPR was introduced, the facility for full paperless cargo reporting was made available to shipping lines and airlines who submit both pre-arrival and post-arrival manifests to Sars electronically; submit complete sets of manifests without any omissions; achieve a reporting data accuracy rate of 90% or higher in respect of both their pre-arrival and acquittal manifests reported for each of the three months preceding any application for exemption from paper reporting requirements; and can maintain that level consistently.

A significant benefit to carriers reporting electronically is the cost-saving of hundreds of thousands of rands spent per year in the paper and administrative costs associated with submitting paper manifests to Sars offices. The process is now more efficient allowing for improved risk management, security and confidentiality.

“Hamburg Süd’s core business strategy is to deliver a premium service to our customer, and to achieve this, compliance is a core driver. SARS paperless reporting is in line with our compliance and sustainability strategy,” said Jose Jardim, general manager of Hamburg Süd South Africa.

For Customs, the mandatory submission of cargo reports forms a significant part of the new Customs Control Act (CCA) in order to secure and facilitate the international supply chain.

With the impending implementation of Reporting of Conveyances and Goods (RCG) under the CCA – targeted for 2018 – carriers of internal goods in the sea and air modalities are urged to follow Hamburg Süd’s example and ensure that they become compliant in good time so that they can enjoy a smooth transition to the new legal dispensation.

Paperless cargo reporting would bring an end to one of the last remaining paper-based processes in customs while further contributing to the expedited processing of legitimate trade through an enhanced and integrated risk management environment.

According to a Sars spokesman technical stakeholder sessions to implement the reporting requirements introduced by the new Customs Control Act are due to commence soon and carriers and other supply chain cargo reporters are urged to attend in order to ensure they adapt their systems in good time.

Source: adapted from FTW Online, Venter. L, “German shipping line first Sars client to become fully electronic reporter”, September 14, 2017.

Mozambique – Single Road Cargo Manifest Phase II

Mozambique flagThe Maputo Corridor Logistics Initiative (MCLI) recently published a communication informing it’s stakeholders about the Single Road Cargo Manifest as received from the Mozambican Revenue Authority (MRA).

The MRA has informed MCLI that the 2nd phase of the Single Road Cargo Manifest process will come into effect from the 16th of June 2017, when all international road carriers transporting goods to Mozambique through the Ressano Garcia border post will be required to submit the Road Cargo Manifest on the Single Electronic Window platform in compliance with national and international legislation. MRA Service Order Nr 17/AT/DGA/2017, in both Portuguese and English, is attached for your consideration.

For information and full compliance by all members of staff of this service, both (National and Foreign) International Cargo Carriers, Clearing Agents, Business Community, Intertek and other relevant stakeholders, within the framework of the ongoing measures with a view to adequate procedures related to the submission of the road cargo manifest, for goods imported through the Ressano Garcia Border Post, in strict compliance to both the national and international legislations, it is hereby announced that, the pilot process for transfer of competencies in preparation and submission of the road cargo manifest to Customs from the importer represented by his respective Clearing Agent to the Carrier is in operation since December 2016.

Indeed, the massification process will take place from 15th of April 2017 to 15th of June 2017, a period during which all international carriers (national and foreign) who use the Ressano Garcia Border, are by this means notified to register themselves for the aforementioned purposes following the procedures attached herewith to the present Service Order.

As of 16th of June 2017, the submission of the road cargo manifest into the Single Electronic Window (SEW) for the import regime, at Ressano Garcia Border, shall be compulsory and must be done by the carrier himself.

International road carriers must therefore register for a NUIT number with the Mozambican Revenue Authority between the 15th of April and the 15th of June 2017 and the necessary application form is included. Road carriers are urged to do so as soon as possible to enable the continued smooth flow of goods through the border post.

Specific details can be found here! 

Source: MCLI

SARS publishes updated EDI User Manual

sars-edi-user-manualSARS has been operating Electronic Data Interchange (EDI) with its external stakeholders since 2001. More than 98% of all customs declaration (CUSDEC) transactions are today submitted electronically to Customs and the electronic submission of multimodal cargo reports (CUSCAR) is steadily increasing. Today, declaration processing is fully electronic end-to-end thanks to the availability of highly established EDI and Customs software service providers supporting the local customs and logistics community. SARS has also recently introduced a benefit for compliant cargo reporters who will be absolved of certain manual (paper) submission requirements once they attain an acceptable level of electronic submission compliance and data accuracy.

The ultimate objective is to ensure that all Customs-to-Business (C2B) transactions are electronic to enable full supply chain connectivity between the South African business community and Customs. This in turn enables the possibility of SARS accrediting or approving ‘supply chains’ as opposed to just individual trader segments (importers and exporters). The extent of electronic compliance is also a pivotal requirement for traders operating under the new Customs Control Act, to be enacted in the future.

SARS overall EDI capability extends further than declarations and cargo reports. In recent years Customs-to-Government (C2G) messaging has also been successfully established between SARS and the Department of Trade and Industry (dti) as well as the South African Reserve Bank (SARB). SARS is also engaging other government stakeholders concerning IT connectivity and data exchange.

Moreover, developments for cross-border Customs-to-Customs (C2C) data exchange are also in the pipeline and could come to fruition with the partner administrations in Mozambique and Swaziland in the foreseeable future. These initiatives will usher in increased supply chain connectivity through active use of the Unique Consignment Reference (UCR) between participating customs administrations. The ultimate objective here is the creation of mutual recognition benefits for local and cross-border traders based on their accreditation status agreed between the participating customs administrations.

The SARS Electronic Data Interchange (EDI) Manual (which can be downloaded from the SARS EDI webpage) has been updated with the latest versions of SARS Edifact Data Mapping Guides as well as improved diagrams explaining the functional composition of the various electronic messages specified for Customs processing. Also included are the requirements for registering as an EDI user with SARS.

The manual includes recent updates relating to cargo reporting (manifests) as well as the updated customs declaration message incorporating recent inclusion of customs surety, penalty and forfeiture requirements. The latter enhancement removes another document based requirement (the Form DA70 Provisional Payment) for Customs Brokers with the view streamlining data requirements, enhancing customs billing and customs status reporting with the trade and logistics community. This EDI Manual will be an important document over the coming months and years in that it will feature updated electronic requirements in support of the new Customs Control Act. Watch this space!

SAMSA Guidelines on the implementation of SOLAS VI Regulation 2 Amendment: Verification of the Gross Mass of Packed Containers

SAMSA logoThe following amended marine notice – click here, issued by the South African Maritime Safety Authority (SAMSA), provides guidance for the implementation of SOLAS Chapter VI Regulation 2 regarding the Verification of the Gross Mass of packed containers. It outlines the Republic of South Africa’s guidelines for the implementation of the mandatory amendments to the International Convention for the Safety of Life at Sea (SOLAS) Chapter VI, Part A, Regulation 2. The SOLAS requirements regarding the Verification of the Gross Mass of packed containers carrying cargo (SOLAS regulation VI/2) will enter into force in July 2016. Amendments to this marine notice include:

  • The implementation of an enforcement tolerance.
  • Containers that are loaded on a ship before 1 July 2016 and are transhipped on or after 1 July 2016.

Source: SA Maritime Safety Authority (SAMSA)

UK drops VGM accuracy requirement

MCA LogoThe UK Maritime and Coastguard Agency has dropped the tolerances it was considering for weighing equipment used to weigh a container for the new SOLAS VGM requirement.

One of the issues that has been holding some terminals back from investing in equipment to weigh containers is the lack of any clarity over the accuracy standards that equipment must meet. SOLAS says only that equipment must “meet the applicable accuracy standards and requirements of the State in which the equipment is being used”.

The UK Maritime and Coastguard Agency (MCA) had been consulting on a proposal for two weighing tolerances for equipment used to generate a Verified Gross Mass (VGM) using method 1 (weighing the container):

  • +/- 400kg up to 20T then +/- 2%
  • +/- 300kg up to 15T then +/- 2%

Sources involved in the process say some port operators and weighing equipment suppliers had expressed concerns these tolerances were unreasonable. MCA has this week issued new guidance on the VGM requirement, including a procedure for applying for approval to use Method 2 (weighing cargo items and calculating the total weight of a container).

The MCA has dropped any requirement for a specific accuracy level, opting instead to set an enforcement level. It stated: “The verified gross mass should be as accurate as reasonably practical taking into account methodology and operational variances. The MCA has set an enforcement tolerance of ±5% or ±500kg, whichever is the greater value to avoid disruption within the supply chain, however this value is for enforcer’s guidance only and it is the shipper’s responsibility to be as accurate as possible”.

Method 1 equipment includes “weighbridges, or lifting equipment fitted with load cells, or other approved weighing equipment to determine a loaded container’s Verified Gross Mass (VGM)”. Unlike other jurisdictions the MCA has not stated that it requires two 20ft containers on a trailer to be weighed separately, or said anything about how the weight of the truck and trailer is to be obtained. It stated only that “Calculations may be used as part of the method 1 process”, so these items do not in fact need to be weighed as part of the VGM process.

With regard to certification and enforcement, the MCA states: “ Method 1 users are required, on request by the MCA or other body, to provide both of the following:

  • Evidence that the weighing equipment has been supplied/maintained for the purpose of determining the VGM of a loaded container and is capable of producing a ticket (electronic record). Each ticket must include the container number, the VGM of the container, and the procedures for, and records of, any calculations which have been made. If this information is produced as an electronic record, it is essential that it is able to be produced without delay as a paper document.
  • Records kept of maintenance and verification (calibration) procedures, including any corrective / remedial actions taken.

The full guidance and other documentation can be found at this link. Source: WorldCargoNews

Walvis Bay rail upgrade ready to service new container terminal

Namport-rail-upgradeThe Namibian Ports Authority has completed the upgrade of all railway infrastructure at the Port of Walvis Bay at a cost of N$20M (US$1.3M)

The work was included in Namports maintenance programme in 2010, but is now part of wider plans to upgrade facilities at Walvis Bay in preparation for the completion of the new container terminal.

A total of 4.5kms of track inside the port and the section of railway running from the city into the port have been replaced using material that can cope with heavier loads.

A spokesperson for Namport said: “Although the project was of relatively low value, its execution was complex as we had to ensure minimum operational interruption to the track, which is in daily use.”

The new container terminal is being constructed on 40-ha of reclaimed land and will add 700,000 TEU of annual handling capacity to the existing 350,000 TEU. Walvis Bay is already attracting bigger ships and recently handled its biggest ever container vessel the CMA CGM DANUBE, a 112,580 dwt vessel with a nominal intake of 9200 TEU.

A statement from Namports read: “The visit of CMA CGM DANUBE complements our port expansion project, which accommodates greater carrying capacity. Following the completion of the port expansion project vessels such as this will be accommodated at the new container terminal.”

The Walvis Bay Corridor Group, which was set up to promote the use of the port among neighbouring states, is keen to improve ancillary infrastructure at Walvis Bay to make the most of the new terminal.

Namport manager for corporate communication Taná Pesat said: “The benefits are our safe and secure corridors to and from landlocked SADC markets. The frequency of direct ship calls and flexibility of doing business with ease.”

However, the plot of land at the port given to Zimbabwe in 2009 for the construction of a dedicated dry port has still not been developed. Source: World Cargo News

US goes its own way on container weighing

World Cargo News reports  – While the Coast Guard maintains the US will be compliant with the SOLAS amendment on container weighing, US Shippers are interpreting guidance from US Coast Guard Rear Admiral Paul Thomas as confirmation they can continue with existing practice to declare the weight of their goods rather than weigh containers.

Following to the fallout over his comments at the Trans Pacific Maritime conference in Long Beach this month, Rear Admiral’s Thomas issued further guidance on the SOLAS amendment that requires containers to have a Verified Gross Mass before they are loaded on a vessel from 1 July.

The US Coast Guard (USCG) has since confirmed that SOLAS is binding on US shippers, but stated that how shippers work with carriers to obtain and report a VGM is a commercial matter for those parties to determine.

Some US shippers, including the US Agriculture Transport Coalition (ATC), have made it known it is not practical for them to supply, and be responsible for anything other than the weight of the cargo, as they do today. The Coast Guard appears to be facilitating this approach, and the ATC last month told its members it “received confirmation” from USCG that shippers can continue to verify the weight of the goods they own, while lines remain responsible for the weight of the container.

On March 14 some 49 groups and associations representing US primary producers, manufacturers, importers and shipper groups wrote to Coast Guard Commandant Paul Zukunft saying they support its “interpretation” of the SOLAS amendment, as presented by Rear Admiral Tomas in his blog.

“Specifically, we support the Admiral’s view that if the shipper provides the cargo mass weight, to which the carrier adds the weight of the container, then the intent of SOLAS is achieved. In fact, several ocean carrier executives have advised that such a process would be practical.”

Some carriers, however, have rightly pointed out that this does not meet the SOLAS requirement, as the letter then notes: “The reason for our concern, and appreciation of Admiral Thomas’ guidance, is that some ocean carriers, citing this SOLAS amendment, are demanding that the shipper certify both the cargo and the carrier’s container. This is contrary to the practical realities of our US export maritime commerce and fundamentally flawed conceptually. (It would be similar to demanding that a soybean shipper certify to the railroad the weight of the railcar itself.)”

The groups maintain that they “fully understand our responsibility to accurately disclose the weights of cargo tendered to the ocean carriers. In fact, advance submission of accurate gross cargo weight is a well-established practice mandated by US Customs and Border Protection, by numerous intermodal (trucking and rail) weight requirements, and presently found in Shipper’s Instructions to carriers to meet so-called “no doc, no load” cargo cutoffs for entry into marine terminals. In addition, an Occupational Safety and Health Administration (OSHA) Rule, in place since 1983, assures that the accurate weight of combined cargo and container be known to the carrier prior to loading.”

Despite SOLAS, the shipper groups do not see a need to weigh individual containers and suggest other solutions can be found: “for instance, shippers are willing to provide to their carriers an annual written confirmation in the service contract (or other mutually-agreed document) that our cargo weights are accurate”.

One of the major concerns is liability, in particular the requirement that someone now sign a VGM document. Shippers say carrier demands for this are being rejected. Many US Corporations will not allow their employee to certify the weight of and assume liability for equipment that the corporation does not own, manage, control and in fact may not even see.”

The Coast Guard, for its part, does not appear to be pushing the issue of current practice not meeting the new SOLAS requirements.

In his testimony at the US House Committee on Transport and Infrastructure’s hearing for the Coast Guard’s 2017 Budget request Admiral Paul F. Zukunft, Commandant, USG made the following statement: “Foreign carriers are pretty much all in compliance today. When I was at the container terminal in Long Beach a month and half ago all the containers that come on to that yard are already weighed before they go in. So I am not seeing a sky is falling panacea playing out around us, but we need to make sure that there aren’t unintended consequences. That is why we are continuing to reach out with the many exporters…that container shows up on a manifest before it is loaded on a ship. What is needed is that final weight, but by and large most of these manifests already have that weight filled in in that column.”

The US, it appears, intends to continue to follow current practice where the shipper provides a declared weight of the cargo, leaving it to the carrier to determine the final weight of the container. Source: World Cargo News

US will not delay weighing rule

Verified Gross MassThe US Coast Guard has told American shippers that it will not delay implementation of the SOLAS Chapter VI amendment requiring containers to have a verified gross mass before they can be shipped.

The US Agriculture Transportation Coalition (AgTC), representing most of the country’s agricultural and forestry products exporters and thus accounting for a huge slice of US shipping exports, argued that confusion over the VGM could lead to business being lost and threatened supply chain turmoil.

It called for a one-year delay in implementation of the new rules, due to take effect on 1st July, to allow time for government and industry to work together to solve the problems. AgTC cited SOLAS Article VIII(b)(vii)(2), which allows for a Competent Authority [in this case the USCG] to give notice to the IMO of an intention to delay implementation of any SOLAS regulation for up to one year at any point before the entry into force.

However, at a special public meeting convened on 18th February at the offices of the Federal Maritime Commission in Washington, DC, Rear Admiral Paul Thomas, the USCG’s Assistant Commandant for Prevention Policy, said a delay to implementation would not be entertained.

Thomas pointed out that that the VGM is not a US regulation or law, but arises out of international agreement within IMO. As such it will be enforced by flag states, where ships are registered, and any signal that the US was unready or unwilling to comply with the new rule would be interpreted by flag state authorities to mean that loading US export containers on their ships is unsafe. He added that most US exports are carried on foreign flag ships.

This should be the end of the matter. However, the IMO mechanisms allow the US (or any other IMO member-state) to give notice any time up to 30th June. The US could also introduce an “AOB” paper at the next IMO MSC meeting scheduled for May.

At the meeting last week, shippers were reassured that if they used “Method 2” (VGM by calculation), they are legally entitled to rely on the container’s CSC plate as providing an accurate empty tare weight. Source: World Cargo News