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Home > Our Insights > Weigh Now or Weight Later: New Cargo Container Verified Gross Mass (VGM) Rules Effective July 1, 2016
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Weigh Now or Weight Later: New Cargo Container Verified Gross Mass (VGM) Rules Effective July 1, 2016

Published:

June 20, 2016

Author(s):

  • Daniel Watt

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As of July 1, 2016, packed cargo containers to which the International Convention for the Safety of Life at Sea (SOLAS), Chapter VI, Regulation 2, applies can’t be loaded onto a ship until the master (or her representative) and the terminal representative have either received the shipping document with the “verified gross mass” (or “VGM”), or the terminal operator or the carrier has itself calculated the VGM.

Effective July 1, new rules for weighing packed cargo containers will come into force globally, including in Canada under the Cargo, Fumigation and Tackle Regulations under the Canada Shipping Act, 2001. The new rules are intended to ensure accurate container weights are available through the supply chain to reduce the risk of container stack collapses and vessel instability caused or contributed to by inaccurately declared container weights. As of July 1, shippers will be required to calculate the VGM – total gross mass – of a packed container and provide the VGM to carriers and terminal operators in a signed shipping document before the container can be loaded on a ship. There are two approved methods to determine VGM; estimated weight isn’t permitted:

  • When a container is packed and sealed, the shipper may weigh it or have a third party weigh it.
  • The shipper or a third party arranged by the shipper may weigh all cargo, dunnage, and securing material to be loaded into the container, and add the tare (unladen) weight of the container.

Here’s how the new VGM rules will impact shippers, terminal operators and carriers.

Shippers. The primary responsibility to comply with the new VGM rules rests with the shipper. And after July 1, no VGM means no loading, no loading means delay, and delay means money. Shippers should be aware of – and prepared for – these implications.

  • Rely on yourself. Shippers can’t rely on being able to obtain VGM dockside: terminals in Canada aren’t required to provide on-site weighing facilities, so some may – and some may not. If such services are available, they will be at an additional cost to shippers that haven’t already obtained the VGM.
  • Advance planning. The new rules don’t mandate when the shipper must supply the VGM information, so shippers should try to negotiate with carriers and terminals mutually agreeable protocols for how far in advance they must provide VGM information.
  • Penalties. The severity of penalties for non-compliance with the new VGM rules depends on which SOLAS state is prosecuting – but in Canada, any person or vessel that contravenes the Cargo, Fumigation and Tackle Regulations is liable on summary conviction to a fine of not more than $1M, imprisonment for a term of not more than 18 months, or both.
  • Risk Allocation. Shippers should review their standard contractual terms to allocate the additional risks the new rules create: the possibility of delay claims for non-compliant containers, the cost of using terminal weighing facilities and the potential for penalties for non-compliance.

Terminal Operators. The new rules carry both risk and opportunity for terminal operators.

  • Clogged Terminal Risks. If terminal operators don’t provide weighing services, some non-VGM cargo and containers will inevitably end up stuck at the terminal. Terminals should establish policies and procedures to ensure they receive VGM information from the shipper or vessel in sufficient time to minimize clogs, and to address who will bear the risks and costs of any non-VGM containers arriving at the terminal. Terminal operators should review their contracts with shippers to properly allocate any resulting costs.
  • Commercial Opportunity. The new rules don’t require terminal operators to provide weighing facilities – but there may be a commercial opportunity to offer this value-added service. Terminal operators will have to examine the practical, legal and business costs and benefits of doing so.

Carriers. The new rules impose key obligations on carriers.

  • No VGM No Load. A major obligation for carriers is to ensure non-VGM containers aren’t loaded on the ship. Carriers are entitled to rely on VGM certification from shippers – but there may be circumstances in which the carrier believes the VGM is inaccurate, and the ship’s master always retains discretion to refuse to load a container (even a VGM-certified one) for safety reasons. Carriers should examine their contracts with shippers to stipulate who will bear the costs of the shipper failing to provide the VGM at all, or providing an inaccurate VGM.
  • Stowage Plans. A second key carrier obligation is to use the VGM information to prepare stowage plans. Stowage issues can cause or contribute to incidents on ships so carriers are well-advised to ensure they have a reasonable system of checking and documenting the VGM of each container they actual load on the ship. This will help protect against claims of non-compliance with the VGM rules and any claims of improper stowage.
  • Delay. The new VGM rules don’t establish timelines by which shippers must provide carriers and terminal operators with the VGM. Prudent carriers will review their contractual arrangements with shippers to ensure shippers must submit the VGM by a set deadline – and allocate the costs of failing to do so.

To assist shippers, terminal operators and carriers with compliance with the new VGM rules, Transport Canada, Marine Safety and Security, has prepared a guide entitled “Canadian Procedure for Obtaining the Verified Gross Mass of Packed Containers as Required by SOLAS VI/2”.


Please contact your McInnes Cooper lawyer or any member of our McInnes Cooper Maritime Law Team to discuss this topic or any other legal issue.


McInnes Cooper has prepared this document for information only; it is not intended to be legal advice.  You should consult McInnes Cooper about your unique circumstances before acting on this information. McInnes Cooper excludes all liability for anything contained in this document and any use you make of it.

© McInnes Cooper, 2016.  All rights reserved.  McInnes Cooper owns the copyright in this document. You may reproduce and distribute this document in its entirety as long as you do not alter the form or the content and you give McInnes Cooper credit for it. You must obtain McInnes Cooper’s consent for any other form of reproduction or distribution. Email us at [email protected] to request our consent.

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  • Newfoundland & Labrador’s New Public Procurement Act

    Dec 19, 2016

    On December 14, 2016, Bill 46 and the Newfoundland and Labrador Public Procurement Act became law. The new Act isn’t yet in effect, however,…

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    Publication
  • Time to Shine: Nova Scotia to Launch Solar Energy Pilot Program in 2017

    Dec 15, 2016

    On December 13, 2016, the Province of Nova Scotia released for comment draft regulations that will establish the Solar for Community Buildings…

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    Publication
  • 10 Steps to Anticipate Citizens’ Challenges to New Developments

    Dec 7, 2016

    Recently, the Nova Scotia Supreme Court denied a motion for a temporary stay of proceedings to prevent the deployment of certain tidal devices…

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    Publication
  • Newfoundland & Labrador: A New Public Procurement Act for 2017

    Dec 5, 2016

    It’s been a long time coming, but Newfoundland and Labrador is finally getting new public procurement legislation. On November 29, 2016, Bill…

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    Publication
  • Supreme Court of Canada Says Privilege Wins Again – Twice in Lizotte v. Aviva Insurance Company of Canada & Alberta (Information and Privacy Commissioner) v. University of Calgary

    Nov 28, 2016

    On November 25, 2016, the Supreme Court of Canada decided privilege wins again - twice. In two separate decisions - Lizotte v. Aviva Insurance…

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    Publication
  • Businessperson or “Business Visitor”: Canada’s Business Visitor Visa Rules

    Nov 22, 2016

    Canada’s most important trading relationship might undergo some change with the results of the 2016 U.S. election. Facilitating cross-border…

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    Publication
  • Public & operator interests in offshore petroleum resources data: Where will the balance be struck? in Geophysical Service Incorporated (GSI) v. Encana Corporation

    Nov 9, 2016

    The balance between the public’s interest in accessing offshore petroleum resources data and operators’ commercial interests is at the heart…

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    Publication
  • Supreme Court of Canada Gives a Lesson in Insurance Contract Interpretation in Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co.

    Sep 19, 2016

    On September 15, 2016, the Supreme Court of Canada decided certain damage to a building under construction was covered under the relevant…

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    Publication
  • Supreme Court of Canada Decides Indian Bands Assessing Leased Reserve Lands for Property Tax Purposes Can’t Have it Both Ways in Musqueam Indian Band v. Musqueam Indian Band (Board of Review)

    Sep 12, 2016

    On September 9, 2016, the Supreme Court of Canada decided in Musqueam Indian Band v. Musqueam Indian Band (Board of Review) that an Indian band…

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    Publication
  • Limitation Periods: Avoiding Hitting the Reset Button in Tuck v. Supreme Holdings

    Aug 17, 2016

    The Newfoundland and Labrador Court of Appeal recently affirmed the test for confirming a cause of action and thus resetting a limitation period…

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    Publication
  • DFO Decides “Last In, First Out” Policy (LIFO) is Out

    Jul 7, 2016

    On July 6, 2016, the Federal Department of Fisheries and Ocean’s (DFO) accepted the Ministerial Advisory Panel (MAP) recommendation in the…

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    Publication
  • Municipal Liability for ByLaw Enforcement: A Bylaw’s Not a Bylaw in Vlanich v. Typhair

    Jul 5, 2016

    The Ontario Court of Appeal has re-ignited the discussion about when a municipality will be held liable for its shoddy bylaw enforcement…

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    Publication
  • Realtor Risk Management: 10 Practical Tips to Help Realtors Manage Litigation Risk

    Jun 20, 2016

    Real estate vendors and purchasers have high expectations of their realtors – and they don’t often hesitate to pursue legal action against…

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    Publication
  • The Parameters of Municipal Power: Supreme Court of Canada Decides Municipality Can’t Block Radiocommunication Tower Construction

    Jun 17, 2016

    In its June 16, 2016 decision in Rogers Communications Inc. v. Châteauguay (City), the Supreme Court of Canada decided a municipality’s…

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    Publication
  • FAQs About AMPs (Administrative Monetary Penalties) in the Canadian Offshore

    Jun 10, 2016

    Administrative monetary penalties, or “AMPs”, are a new phenomenon in the Canadian offshore. AMPs were introduced to the Newfoundland &…

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    Publication
  • Assertion of Aboriginal Right Does Not Automatically Confer Eligibility to Appeal a Regulatory Approval

    Jun 6, 2016

    On June 2, 2016, the Supreme Court of Canada denied an Alberta First Nation’s request to appeal the Court of Appeal’s dismissal of its bid…

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    Publication
  • The East Coast Duty to Consult Indigenous Peoples

    Jun 6, 2016

    Each Provincial government is under the legal duty to consult; the manner in which each carries out its legal duty to consult differs depending…

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    Publication
  • The Legal Defence of Due Diligence: Top 5 FAQs

    May 2, 2016

    “Due diligence” is a legal defence to many charges under occupational health and safety (OHS) laws. Here are five of the most…

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    Publication
  • The New Nova Scotia Mineral Resources Act: The Good, The Risky & The Neutral

    Apr 21, 2016

    On April 15, 2016, Bill No. 149, The Mineral Resources Act (2016) (2016 Act), passed its second reading in the NS House of Assembly. Although…

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    Publication
  • Supreme Court of Canada Decides Federal Government Has Legislative Authority Over Métis & Non-Status Indians

    Apr 19, 2016

    On April 14, 2016, the Supreme Court of Canada decided that Métis and “non-status Indians” are “Indians” under section 91(24) of the…

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    Publication
  • From Watershed Decision to Watershed Law: Government Proposes Physician-Assisted Dying Law in Bill C-14 An Act to amend the Criminal Code and to make related amendments to other Acts (medical assistance in dying)

    Apr 15, 2016

    On April 14, 2016, Canada’s federal Justice Minister proposed legislation setting out the conditions that a person wishing to undergo…

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    Publication
  • Doing Business With the Public Sector: Key Confidentiality Risks & 3 Risk Management Strategies

    Mar 24, 2016

    When a business responds to a public sector Request for Proposal or Expression of Interest (both of which we’ll refer to as an RFP for these…

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    Publication
  • Construction Project Manager Sentenced to 3½ Years for Workplace Accident in R. v. Vadim Kazenelson (aka “Metron”)

    Mar 9, 2016

    In what appears to be the first case of the conviction of a front line supervisor under section 217.1 of the Criminal Code and sentencing to a…

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    Publication
  • Energy Safety and Security Act (ESSA): 7 Key Changes Toughen Up Atlantic Offshore and North Oil & Gas Regulatory Regime

    Feb 15, 2016

    On February 26, 2016, the bulk of the offshore-related amendments of the Energy Safety and Security Act (ESSA, formerly known as Bill C-22) take…

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    Publication
  • NB Kicks-off First Request for Expressions of Interest from Aboriginal Businesses Under New Electricity from Renewable Resources Regulation

    Feb 1, 2016

    On January 29, 2016, the New Brunswick Power Corporation (NB Power) kicked-off compliance with its obligations under the new Electricity from…

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    Publication
  • Doe 464533 v. D.: Business Implications of the Civil Privacy Claim for “Public Disclosure of Private Facts”

    Jan 27, 2016

    On January 21, 2016, the Ontario Superior Court of Justice dramatically expanded the scope of legal privacy protection – and the liability…

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    Publication
  • Offshore Oil and Gas Decommissioning Best Practices

    Dec 21, 2015

    A practical and current guide created to help you navigate the increasingly important issues surrounding offshore decommissioning and…

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    Publication
  • University of Calgary, The School of Public Policy Research Paper – Canada, The Law of the Sea Treaty and International Payments: Where Will the Money Come From?

    Sep 8, 2015

    The United Nations Convention on the Law of the Sea requires parties, of which Canada is one, to make payments in respect of oil production on…

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    Publication
  • Bad Faith & Production of an Insurer’s Business Information: 4 Key Implications of the NB Court of Appeal’s Decision in Wade v. Wawanesa Ins. Co.

    Jul 21, 2015

    On July 16, 2015, the New Brunswick Court of Appeal ordered an insurer to produce a significant amount of its financial and business information…

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    Publication
  • The Changing Face of Aboriginal Law: 1 Short Year, 2 Big Court Decisions, 3 Key Implications for the Energy & Natural Resources Sector

    Jul 17, 2015

    On the heels of National Aboriginal Day, we pause to take a look back at two significant Aboriginal law cases decided in the last year, how…

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    Publication
  • Unproven Aboriginal Rights Enough For Lawsuit Against Private Industry

    Jul 10, 2015

    On April 15, 2015, British Columbia’s Court of Appeal confirmed that First Nations can make certain legal claims grounded in Aboriginal rights…

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    Publication
  • 3 Reasons for Directors, Officers and Supervisors To Take Occupational Health and Safety Personally

    Jun 25, 2015

    Most people know that a company itself has OHS obligations, and that it risks corporate liability if it violates those obligations. However, not…

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    Publication
  • Nova Scotia Goes Its Own Way: Future CPP Disability Benefits Deductible Under SEF 44 in Portage Le Prairie Mutual Insurance Company v. Sabean and Hallett

    Jun 8, 2015

    On June 4, 2015, the NS Court of Appeal decided the value of future CPP disability benefits is deductible under the SEF 44 family protection…

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    Publication
  • The Export/Import Journey: 3 Key Ways Choosing a Free Trade Agreement Country Can Simplify the Trip

    Apr 2, 2015

    The market for the sale and the supply of goods is a global one for many businesses in today’s economy. Both exporting goods from Canada and…

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    Publication
  • Final Form of New NS Limitation of Actions Act: “Sudden Death” Limitation is Out for Personal Injury Claims

    Feb 18, 2015

    The new NS Limitations of Actions Act – the legislation that determines the limitation period (time limit) in which a lawsuit must be started…

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    Publication
  • No More Criminalization of Physician-Assisted Dying: The Ripple Effects of A Watershed Decision in Carter v. Canada (Attorney General)

    Feb 9, 2015

    NOTE: On April 14, 2016, the federal government proposed legislation setting out the conditions that a person wishing to undergo…

    Read More
    Publication
  • 5 “Legal” Reasons Why Natural Resource Companies Should Care About Corporate Social Responsibility (CSR)

    Dec 10, 2014

    “Corporate Social Responsibility” (CSR) as a concept has been floating around in business-speak for years – but stakeholders in the mining…

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    Publication
  • NS Proposes New Limitation of Actions Act: The 3 Top Benefits & The 10 Key Changes

    Nov 3, 2014

    Note: On November 20, 2014 the NS Government passed the final form of Bill 64, Limitations of Actions Act into law. The final form of the Act…

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    Publication
  • Canadian Treaty Shopping Proposal Shelved Pending Final OECD Recommendation, First To Be Released September 16

    Sep 11, 2014

    The Canadian federal government has been concerned for some time about “treaty shopping” by non-residents – the practice of non-residents…

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    Publication
  • Changes to NB Rules of Court Effective October 1, 2014 Benefit Successful Party

    Sep 9, 2014

    Effective October 1, 2014, the New Brunswick Rules of Court will change – some Rules for the first time since they came into effect in 1982.…

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    Publication
  • Complying With Canada’s Anti-Spam Law (CASL) – Foreign Organizations Doing Business in Canada Need to Pay Attention

    Aug 1, 2014

    Most Canadians have heard about Canada’s Anti-Spam Legislation (CASL): we’ve been bombarded with “CASL Compliant” emails asking us to…

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    Publication
  • SCC Sets Test for – and Defines Rights of – Aboriginal Title in Canada

    Jun 26, 2014

    On June 26, 2014, in its groundbreaking decision on Aboriginal title in Read the SCC’s decision in Tsilhqot’in Nation v. B.C., 2014 SCC 44,…

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    Publication
  • What’s In The Pipe? Municipal Liability for Flood & Sewage Back-Up Claims

    May 2, 2014

    April showers bring … flood and sewage back-up claims. Flooding and sewage back-up can result in significant damage for municipal ratepayers,…

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    Publication
  • Legal Update: The Duty to Consult – Important Lessons from Canada’s Mining Sector

    Mar 15, 2013

    Recent developments in Ontario and Yukon are an important reminder of the practical implications of the Crown’s legal Duty to Consult with…

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    Publication

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