Shippers & Forwarders Beware! The Heavy Price of Overweight Containers: VGM Rules and Real Penalty Cases

A container was overweight and was fined RMB 15,000. The shipping schedule was delayed for two weeks and the customer made a claim for US,000. This is not a joke, it is a real case.

Today we will talk about VGM (Verification of Gross Container Mass) and the consequences of not declaring it in accordance with the regulations.

VGM (Verified Gross Mass), that is, "verified gross mass of the container", refers toThe sum of cargo dead weight packaging weight padding/pallet container dead weight.

On July 1, 2016, the International Maritime Organization (IMO) enforced the SOLAS Convention Amendment:Containers without VGM are prohibited from being shipped.The purpose is to prevent major safety risks such as terminal accidents, ship stowage imbalance, and containers falling into the water due to overweight.

Who is responsible for:The consignor (Shipper) on the bill of lading is the legal responsible person of VGM. The freight forwarder can report on behalf of the goods, but the responsibility remains with the shipper.

Practical suggestions:For high-value or heavy goods, the overall weighing method is preferred. When calculating cumulatively, be sure to weigh each item one by one and do not estimate.

The upper limit of weight of common containers by major domestic shipping companies (including container weight):

• 20GP: usually no more than 28 tons (some shipping companies can reach 30 tons)

• 40GP/40HQ: usually no more than 30 tons (some can reach 32 tons)

• 45HQ: usually no more than 28-30 tons

Allowable error:±5% or ±1 ton, whichever is smaller.

• If VGM=10 tons, the allowable range is 9.5-10.5 tons

• If VGM=30 tons, the allowed range is 29-31 tons (because ±5%=1.5 tons, but the upper limit is ±1 ton)

Exceeding the error range = VGM declaration is false, the terminal has the right to refuse loading and impose a fine.

An export company declared that the VGM of a 20GP container was 27 tons, and the port random inspection weighed 30.5 tons. It is 2.5 tons overweight, and the error is far beyond the allowable range. Penalty: a fine of 15,000 yuan, the container was detained for re-staging, the shipping schedule was delayed by 2 weeks, and the customer claimed ,000 for the delay in receiving the goods. The total loss exceeded 50,000 yuan.

For one export steel bill, VGM declared 28 tons, but the actual value was 31.2 tons. The customs determined that the declaration was false and imposed a fine of 12,000 yuan, which was recorded in the company's credit file. Since then, the company has been listed as a high-risk control target for three consecutive months, and the average inspection rate has increased from 3% to 25%, which has a great impact on subsequent shipments.

A Chinese exporter's arriving cabinet was found to be about 1.5 tons overweight. The fine at the port of destination is US,500, plus unloading fees, reweighing fees, and storage fees, totaling approximately US,000. The consignee refuses to bear the responsibility, and the consignor ultimately bears the full amount.

• Stone and ceramic tiles:High density, a small container can easily exceed 28 tons

• Steel and metal products:Same density

• Mechanical equipment:The single piece is heavy and it is easy to ignore the weight of packaging and pallets.

• Paper rolls and roll materials:Small size but big weight

• Glass, ceramics:Heavy and fragile, cannot be squeezed but has high weight

Prevention:Estimate the density before loading (20GP is about 33 cubic meters, the weight limit is 28 tons, you need to be careful if the density exceeds 0.85 tons/cubic). After installing the cabinet, try to go to the weighing scale instead of relying on your feelings.

1. Booking:Confirm the shipping company, weight limit standard, and customs cut-off time

2. Loading:Factory packing and sealing

3. Weighing:Take the order by overall weighing, or calculate cumulatively and keep the details

4. Submit:Submit VGM through the freight forwarder or shipping company system (need to provide container number, seal number, weight, and weighing method)

5. Confirm:You can enter the port and board the ship only if the system displays "OK"; if it displays "FAIL", you need to adjust or re-report.

Deadline:Usually 24-48 hours before customs cut off, each shipping company is different, so be sure to confirm in advance.

• Did not enter the port:Separate containers, reduce cargo, and switch to shipping companies with higher weight limits

• Has entered Hong Kong and been inspected:Apply for reconfiguration (postponement of shipping schedule), or cancel customs and re-operate (high cost but avoid fines)

• Found at the destination port:Immediately negotiate with the consignee to share the cost, and at the same time collect evidence to apply to the shipping company for partial demurrage fee exemption

Remember:Do not attempt to conceal or modify weight. There are now multiple weighing equipment and data comparison systems in ports. Once discovered, the losses will be even greater.

Calculate the weight before loading the cabinet:Use an electronic scale to weigh several items and estimate the total weight, leaving an error buffer of 2-3%.

Submit VGM 2 days in advance:Allow time for exceptions to be handled and don’t get stuck in the last few hours before the cutoff.

Keep evidence of weighing:The weighing scale list, cumulative calculation details, and photos should be kept for at least 3 months.

Purchase freight insurance:Confirm whether the policy covers "theft and failure to pick up the goods". Fines caused by overweight are generally not covered by the insurance, but loss and delay of the goods can be compensated.

• VGM is mandatory, not optional.

• Excess weight can lead to fines, delays, customer claims, credit downgrades, and even safety incidents.

• The allowable error is very small, don't take any chances.

• Spending tens of dollars to weigh in is much more cost-effective than spending tens of thousands of dollars in fines.

• Passing the floor scale after loading the cabinet is the lowest cost risk control method.

Find a reliable customs broker and save yourself a lot of trouble!We are a first-hand customs broker that specializes in export declarations, trailers, commodity inspection, and certificates of origin. We are the main port in South China and can do it in major ports across the country.

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