CargoSmart reviews port performance before and after new VGM rule

The ship management software provider analyzed six ports throughout the world to better understand what impact the new verified gross mass amendment of the Safety of Life at Sea convention has had on the shipping industry since it took effect July 1.    CargoSmart, a provider of ship management software, reviewed the performance at six ports before and after the new verified gross mass (VGM) amendment of the Safety of Life at Sea (SOLAS) convention took effect July 1.
   The six ports analyzed from March-May 2016 and from July-September 2016 included the ports of Jawaharlal Nehru (Nhava Sheva) and Tanjung Pelepas in Asia, Rotterdam and Felixstowe in Europe, and Los Angeles and Savannah in North America.
   CargoSmart reviewed average arrival delays, departure delays and berth times; vessel distribution; and the number of vessel arrivals.
   Under the new VGM rule, shippers and forwarders are required to provide the VGM of all containers prior to being loaded onto a vessel. If carriers do not receive this information, they may hold cargo, which could cause delays at the port.
   Shippers and forwarders were concerned that cargo would be delayed due to the rule, but CargoSmart revealed in its monthly e-newsletter on the ocean shipping industry, Innovating, that the new SOLAS requirement has not impacted average vessel arrival delays, berth times or departure delays. “This means that the extra work, which shippers, forwarders, carriers, and terminals do to comply with the VGM requirement, has not disrupted vessel schedules,” CargoSmart said.
   Meanwhile, vessel size distribution at the six ports has remained the same after the implementation of the new SOLAS requirement. The number of mega vessel arrivals at most ports except for Savannah did not increase. However, the larger ships calling Savannah most likely resulted from the new Panama Canal locks, which opened in June 2016. “The nature of the sea ports (e.g. capacity, season and location) is likely still the determining factor for vessel size distribution,” CargoSmart said.
   However, the number of overall vessel arrivals at the six ports fell from 3,444 arrivals in the March-May timeframe to 2,834 arrivals in the July-September period. The number of vessel arrivals fell at all six ports, and at the Port of Tanjung Pelepas, vessel arrivals fell about 40 percent after the requirement took effect.
   Overall, ocean carriers reported in September that initial compliance has been strong, CargoSmart said. “Given that the port state control authorities had been taking a practical and pragmatic approach when enforcing the rules for July to September, we will continue to monitor the impact on port performance after October,” the company added.