Kargoly is a freight forwarder or freight forwarding company used by businesses to arrange and handle the movement of domestic and international Air, Ocean or Ground shipments from point of origin to point of destination, as well as, to assist importers and exporters to transport their commercial goods from one international location to another. Kargoly ensures that goods arrive at the right location, on-time and on budget, by acting as an intermediary to ensure cooperation between the customer and all involved airlines and carriers. Core responsibilities are to identify the best routes, advise on various modes of transport, as well as, to negotiate freight rates with the airlines and carriers to move cargo economically, via the best shipment points.

The International Maritime Organization (IMO), announced the Verified Gross Mass (VGM) requirements under the amendments to chapter VI of the International Convention for the Safety of Life at Sea (SOLAS), will become mandatory on July 1st, 2016.

SOLAS is an IMO (a United Nations specialized agency) treaty & generally regarded as the most important of all international maritime treaties concerning the safety & security of shipping & the prevention of marine pollution.

Effective from July 1st, 2016, ocean carrier vessel operators & port terminal representatives in approximately 170 countries, will be prohibited from loading cargo shipping containers aboard a vessel for export, if the container’s gross mass has not been verified.

Shippers are responsible for providing mandatory verification of the VGM for all packed cargo shipping containers, prior to tendering cargo & loading on a vessel. IMO guidelines state the Shipper is the entity or person named on the bill of lading or sea waybill. The Shipper is responsible for accurately recording, duly signing & authorizing the VGM data on the shipment documents & providing to ocean carrier vessel operators & port terminal representatives, for use in the ship stowage plans. The weighing must be done after stuffing & securing of containerized cargo in one of two approved ways as follows:

Method #1: After packing & sealing a container, the Shipper may weigh or arrange a third party to weigh the packed container using calibrated & certified equipment.

Method #2: The shipper or a third party may weigh all packages & cargo items, including the mass of pallets & other packing material securing the cargo in the shipping container, by adding the tare mass of the container to the mass sum of the cargo, using a certified method as outlined by the IMO. Any third party that has performed some or all of the packing of the container should inform the Shipper of the mass of the cargo items & packing materials that the party has packed into the container in order to facilitate the Shipper’s verification of the gross mass of the packed container.

Estimating weights of the contents of the container & adding those weights to the container’s tare weight is not permitted. Shippers cannot use weights for any cargo in a container that someone else has provided, with the exception of original, sealed packages printed with the accurate mass of the cargo items, marked by the manufacturer directly on the original packaging.

Ocean carriers have advised to use the weight given on the container, unless they have provided another method for Shippers to verify the actual tare weight for each container. It is important to note that some empty container tare weights printed on the side of the container could be incorrect, due to containers often having to be repaired or reinforced using metal.

Dangerous goods are solids, liquids or gases that are flammable, explosive or toxic to people, other living organisms, property or the environment. Manufacturers, shippers and transporters MUST know what they are shipping and properly identify, classify, pack, mark, label and document according to Transport Canada’s dangerous goods regulations. The 9 dangerous goods classes are: Class 1 Explosives, Class 2 Gases, Class 3 Flammable Liquids, Class 4 Flammable Solids, Class 5 Oxidizing Substances and Organic Peroxides, Class 6 Poisonous and Infectious Substances, Class 7 Radioactive Materials, Class 8 Corrosives and Class 9 Miscellaneous Products or Substances. Contact Kargoly for more information on Dangerous Goods.

At Kargoly we understand the many factors involved with fluctuating freight forwarding rates. For imports, December to April from Asia to North America is referred to as slow season, due to the retail market slow down after the Christmas period. Markets can experience a surge in cargo moving in mid January to early February to beat the Chinese New Year deadline when factories in China close for approximately 2 weeks causing rates to increase due to lack of space on vessels. May to November is considered peak season when there is a demand for cargo moving into North America and carriers tend to raise the rates during this time with what is called a GRI (general rate increase) or PSS (peak season surcharge). Another factor is fuel increases where carriers change the fuel surcharges when the price of oil rises with what is called BAF (bunker adjustment factor). In addition, carriers also increase rates when terminal costs rise.

Duties include any duties or taxes levied under the Customs Tariff, the Excise Tax Act, the Excise Act, or the Special Import Measures Act. Customs duty includes only the duties prescribed under the Customs Tariff.

In most cases an OB/L is required to be surrendered on arrival and prior to shipment release. The seller has the option of requesting an “express bill of lading” which will allow for the release of the cargo without the original bill of lading. All parties involved, i.e. buyer, seller and carrier should have a copy of the BOL. The only way to release the shipment is to present the OB/L or have the OB/L express released.