SOLAS VGM rule takes effect on July 1

From 01 July 2016 the SOLAS VGM regulation will come into effect requiring the weight of a container to be verified before shipment. 

While there has been some discussion about how strictly the regulation will be enforced there has also been some misunderstanding that the regulation has been delayed by three months, but this is not the case. The regulation will take effect from this date, and it is a requirement to obtain a VGM for a packed container.

At Jade Logistics we are well prepared. Our terminal operating system (TOS), Master Terminal, can record a container’s VGM using in-machine technology or weighbridges.

If you would like to find out more about Jade’s approach to VGM, read the Master Terminal container weighing fact sheet or our article Worth the weight?

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Master Terminal helps mixed cargo ports compete with world’s best

Strong business relationships, exceptional technology, and project implementation skills have helped Jade Logistics’ terminal operating system, Master Terminal, to become the world’s leading TOS for mixed cargo ports.

Tony Davis, Director of Marketing, Jade Logistics recently spoke to the Australian Logistics Council about how software can drive efficiency gains and increase a port’s revenue potential. He believes that Jade’s terminal operating system, Master Terminal, is ideally suited to Australian ports, given their mixed cargo focus, and discusses the company’s plans to expand into the Australian market.

Read the full article to see how Davis thinks that cutting-edge technology can provide a significant return on investment. Future Freight Networks 2016: Jade’s Master Terminal helps mixed cargo ports compete with world’s best (page 126).

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Stack of containers at a shipping port

Still confused about the SOLAS VGM rule which takes effect on July 1?

As of July 01, 2016, it will become mandatory to verify a container’s weight before it is loaded onto a vessel.

With the clock counting down to 1 July when the new SOLAS (Safety of Life at Sea) Verified Gross Mass (VGM) rule takes effect, there is still a lot of confusion and many questions being asked about what it will mean to the industry. There have been some suggestions in the media lately that shippers, terminal operators, and container lines will get some leeway in the first three months while things are sorted out. However, this should not be taken as a license to do nothing. The rule is here to stay and those who do nothing risk penalties.

There have been many “how to videos”, infographics and articles published on what the rule is, but very little on how companies can transform their operations and actually undertake the container weighing. At Jade we are well prepared. Our Terminal Operating System (TOS), Master Terminal™, can record a container’s VGM using in-machine technology or weighbridges.

If you would like to find out more about Jade’s approach to VGM, read the Master Terminal container weighing fact sheet or our article Worth the weight?

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Jade first to address weight issue

Since March this year, Jade Logistics’ terminal operating system, Master Terminal, has been ready to capture a container’s VGM, making Jade one of, if not the first TOS vendor to introduce this functionality into their software.

The countdown is on. Less than two months remain until the International Maritime Organization’s new container weighing regulations take effect. As of 1 July 2016, the Safety of Life at Sea (SOLAS) Convention requires, as a condition for loading a packed container onto a ship for export, that the packed container has a Verified Gross Mass (VGM).

Yet despite this impending deadline many terminal operators globally have decided to bury their heads in the sand and will not be ready when the updated maritime treaty comes into force. Whether that is due to disorganization, blind optimism that shippers will take full responsibility for container weighing, or that their software does not have the functionality to record VGM, it was not an option for Jade Software.

Master Terminal can now record a container’s VGM using in-machine technology or weighbridges. Terminal operators also have the option to manually enter a pre-recorded container VGM and mark it as verified.

Paying heed to Ship-planning Message Design Group (SMDG) guidelines and working alongside ship operators, we have updated Master Terminal to enable sending and receiving  the VGM of a container in a variety of accepted EDI message formats. The new VERMAS EDI message, which communicates a container’s VGM, authorized person, and responsible party, is also now part of Master Terminal EDI functionality.

At Jade, we pride ourselves on innovation, and our development process differs from other vendors in our industry. While many of our competitors update their software on a yearly basis, we deliver monthly releases. Our users benefit from this agility. It means we can quickly and easily introduce features like VGM processing, so Master Terminal users can benefit from new functionalities within a matter of weeks, not months or years.

With our agile monthly release process, we are able to work alongside our customers and continually enhance Master Terminal to meet their changing needs. Or as our developers like to put it “we listen”. It may seem like a simple statement, but the fact is that many ports have to make do with a generic TOS that they are shoehorned into. They receive software updates infrequently and don’t have a say in what is included in those updates.

So while our users will be up and running processing and recording container weights, a service that they can ultimately charge shippers for, many of our competitor’s ports will find themselves having to decide whether to record VGM manually, a laborious and time-consuming ordeal, or to purchase additional third-party software, a costly and inelegant solution that often throws up difficulties when trying to interface with existing systems.

If you would like to find out more about Jade’s approach to VGM, read the Master Terminal container weighing fact sheet or our article Worth the weight?

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Jade congratulate Abu Dhabi Ports on 10th Anniversary

Jade Logistics is proud to work alongside Abu Dhabi Ports and congratulate them on their 10th Anniversary.

Jade’s terminal operating system, Master Terminal was selected by Abu Dhabi Ports in 2014 to manage operations at seven terminals as the port embarked on an ambitious program to optimize productivity across their ports.

Learn more in Abu Dhabi Ports’ press release.

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Worth the weight?

With new container weighing regulations due to take effect in July 2016, is your port in position to capitalize on this industry-changing opportunity? 

The International Convention for the Safety of Life at Sea (SOLAS) has, for many years, required the weight of any freight container to match the weight declared in shipping documents. Despite this regulation, a string of incidents due to inaccurate weight measuring has revealed how regularly this rule is glossed over, or interpreted as ‘roughly matching’ rather than ‘exactly matching’.

The Journal of Commerce cite reports that the proportion of global container trade that is wrongly declared could be as high as 20%.

Because ports typically use the weight recorded on the carter’s note to plan for stowage, if the measurement is out, this can have potentially detrimental effects on on-board weight distribution. It also affects port procedures including crane failure due to containers exceeding crane load limit; and instability on trucks or rail carriages.

Heavy boxes may be placed higher in stacks, with lighter boxes bearing the bulk. This can often lead to stacks collapsing, causing damage to the cargo and ship, and putting crew in danger. It could even result in cargo tumbling over board. This can create environmental damage as well as sea vessel navigation hazards. According to The World Shipping Council, approximately 546 containers are lost at sea every year (excluding during catastrophic events).

Reports by The UK Marine Accident Investigation Branch (MAIB) show that a commonality of many stack failure incidences was incorrectly declared container weights.

The MAIB speculated that the reason incorrectly declaring a weight is so prevalent is due to two main factors:

  1. the lack of accurate weighing facilities available to shippers
  2. shippers deliberately declaring lower weights to avoid import duties, maximize container use, and bypass road and rail weight rules.

As the responsible party for setting minimum standards for international shipping design, construction and equipment, SOLAS is taking action. In response to the preventable environmental, economic, and safety accidents caused by inconsistent container weighing, SOLAS is enforcing a new requirement in July 2016 – each container’s weight must be verified.

Reports point to the global insurance industry pushing this initiative hard as a way of reducing losses due to misdeclared container weights.

So what does this mean for terminal operators?

While the main responsibility for accurate weighing falls on shippers, terminal operators do need to protect themselves by ensuring weights are accurately recorded. According to an insurance expert quoted in the Journal of Commerce terminal “operators are at risk when they lack evidence for their refusal to carry a container.”

While the regulation presents an opportunity for some, like Dunedin-based firm Bison who have created revolutionary weighing jacks, many organizations are unprepared for this legislation change and have spent little time planning how to implement this new requirement. Anyone involved in container operations – shippers, hauliers, carriers, and terminals – need to be aware of the time, equipment, and processes required to verify container weight, and have everything in place before 1 July 2016. Otherwise they could be facing serious operational, commercial, and legal consequences.

To learn more about how Jade’s terminal operating system Master Terminal handles the challenge of container weighing, download the Master Terminal container weighing fact sheet.

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Image of the Patriot Ports banner image four American flags flying high

US port logistics firm rolls out Jade Master Terminal

New Zealand based software and solutions company, Jade, has reported success in a series of implementation projects at shipping terminals along the south-eastern coast of the United States.

Diversified Port Holdings (DPH), an integrated ports logistics business, selected Jade to implement its terminal operating system across five of its shipping terminals. The third installation has been completed in just six weeks.

Read the story on Port Technology.

Is global trade in rough water?

From August to October, America’s three biggest ports’ (Los Angeles, Long Beach, and New York harbor) imports fell by 10% during what is usually their peak shipping month. Global merchandise trade value also decreased by 13% in the first half of this year.

In past years as retailers flog their wares to hordes of holiday shoppers in December, ports have been equally as busy working to replenish merchandise. But ports are relatively quiet this year.

Although most economists are confident these statistics don’t translate as the demise of the global economy, they do tend to create nervousness within the port industry. Every terminal operator is aware that less demand results in increased competitiveness among ports and logistics companies.

However, during this sort of circumstance pressure can often lead to progress. The need to increase efficiency and decrease resource wastage has the potential to result in smart, innovative new ways of increasing competitiveness.

According to the DP World November 2015 report, investing in ICT innovation is one of the key principles ports should be following to increase competitiveness and level the playing field.

Ports may have the opportunity to invest in new ICT systems to help automate and increase operation systems’ efficiency. However, during uncertain economic times it is imperative to know for certain that any ICT investments will bring about a profitable return.

As part of an overall terminal transformation process, implementing a new terminal operating system (TOS) plays a core role in the upgrade. In order to successfully initiate a TOS, planning and processes are key.

There is little use investing in this kind of technology if the project causes more problems than it solves. In a busy, non-stop port, you can’t afford to implement a new TOS unless it goes smoothly.

Having implemented the Master Terminal TOS at ports all over the world facing all kinds of challenges, at Jade we’ve learnt a lot about what it takes to get this process right. It’s as much about people as it is about technology, and getting some of the small things right can make a huge difference to your implementation success.

To learn more about TOS implementation strategies, download our white paper Smoothing Your TOS Implementation.

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[1] http://www.wsj.com/articles/quiet-u-s-ports-spark-slowdown-fears-1447583406

[2] A turning point: The potential role of ICT innovations in ports and logistics. A report for DP World
Prepared by The Economist Intelligence Unit. November 2015

World Cargo News talk to Jade’s Kaustubh Dalvi about the recent installation of Master Terminal at Abu Dhabi Ports

Jade Logistics has successfully gone live with its terminal operating system (TOS), Master Terminal, at three of seven sites for Abu Dhabi Ports  (ADP).

ADP is replacing legacy systems with Master Terminal for its mixed cargo operations. The first site to go live was Zayed port in July, after a six-month implementation phase. It was followed by Khalifa (1 August) and Musaffah (6 September). The remaining four terminals are expected to go live in 2016.

Speaking with World Cargo News, Jade’s director of business development, Captain Kaustubh Dalvi, said the changeover to Master Terminal is a comprehensive undertaking, with Jade installing a new server family within ADP’s existing infrastructure.

Dalvi said a common challenge at general cargo terminals is the lack of standardisation of data that can be exchanged electronically. “This limits the port community to take full advantage of the pre-advising and pre-planning functionality, which is available in our TOS,” he said. However, ADP is a forward-thinking organisation in this respect, and will use EDI for general cargo, which is something not all terminals in the general cargo business do. Port agents were trained to supply manifests, load and discharge information in standardised format. “As a result, cargo is now electronically declared 24 hours in advance of arrival using EDI,” said Dalvi.

The ADP project includes a suite of Master Terminal mobile applications and a web portal. The portal will allow stakeholders to access information using cargo queries and self-service reporting, and/or register pre-notifications, truck appointments request for services, etc.

Master Terminal has a multi-terminal architecture, and all the terminals will be hosted at a single physical location. The transition to Jade will be managed by running the new software in parallel with legacy systems at each terminal’s go-live. “We typically commence the parallel run a couple of weeks prior to the actual go-live, to minimise downtime and potential disruption,” said Dalvi. He also emphasised the importance of ADP’s project team and super users in ensuring a successful go-live, particularly in avoiding bottlenecks, as the team brings seven terminals live with the new TOS. The remaining four facilities are expected to go live in 2016.

Shipping index falls to all-time low

The Baltic Dry Shipping Index, regarded as an insight into the state of world trade, has fallen to an all-time low.

The index, which measures shipping rates for everything from coal to ore to grains, fell to 504 points on Thursday, the lowest data from the London-based Baltic Exchange going back to 1984.

According to Port Technology, at a similar time last year the Baltic Dry Shipping Index was at 1,296, meaning the strength of the market has been halved.

What does this mean for the world’s ports?

That now, more than ever, a port needs to prove it is an efficient and effective link in the supply chain, or risk being overlooked for competition with greater productivity.

So how can a port achieve this without a large capital outlay?

A Terminal Operating System (TOS) is more affordable and produces a faster return on investment than dredging or purchasing infrastructure (cranes, straddle carriers, heavy machinery), it poses less financial risk to these alternatives, and allows your port to find efficiencies across your entire operation.

Jade Logistics’ TOS, Master Terminal solves the complex problem of managing containers and mixed cargo. Ideal for growing, ambitious ports, Master Terminal helps you compete hard for a shipper’s business, no matter who you are up against.

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