In 2016, the ocean shipping industry faces its most significant regulatory change in several years. While it poses significant risks to the smooth flow of commerce at our distribution centers and ports, I see it as a great opportunity for our industry not only to meet the challenge, but also take a big step forward toward greater efficiency through automation.
In July 2016, an additional Safety of Life at Sea regulation will go into effect, requiring shippers to provide a verified gross mass, or certified weight, for all ocean shipping containers before they are loaded onto a ship. By year-end, there will be approximately 300,000 container weights certified each day, and transmitted prior to the container being allowed to load to the ship.
SOLAS VGM is an important safety measure that will help prevent loss of life and loss of cargo, as the distribution of weight affects the stability of a vessel. But there is widespread concern that if the industry is not adequately prepared, there could be a significant disruption to the flow goods through our ports. Because roughly 90 percent of the world’s cargo is transported via ocean shipping, such a disruption may adversely affect the operations and performance of companies worldwide.
According to Inttra data, approximately half of all booking requests and shipping instructions submissions are still non-digital. Digital submission is far more efficient than the use of phone and fax, saving users time and money, and improving data quality.
The addition of a regulation that will require this new distinct process should be a catalyst for a broader embrace of automation in ocean shipping. For this to happen, collaboration will be essential. Several major industry players, including carriers and freight forwarders, have joined an “eVGM” coalition to state a preference for going “digital first,” and to help foster agreement or consensus on a technology standard and standard business process for digital documentation of VGM submissions.
John Fay, CEO, Inttra