Industry Update – Suspension of Overseas Fumigators for BMSB / Ongoing PONDUS Weight Amendment Fees

Attention: Shipping Manager

 

Suspension of Overseas Fumigators for BMSB

We are seeing a high number of overseas fumigation companies being struck off Quarantine’s “approved providers list” over the past couple of months.  This can happen at any time, meaning goods in transit that have previously been fumigated by one of these companies, their fumigation is now deemed invalid and no longer acceptable by Quarantine here.  This is happening across the board affecting multiple shipping lines, freight forwarders and their clients. It is also happening from multiple origins.

It is very frustrating for all concerned and despite numerous entreaties to Quarantine, they do not make any exceptions and will insist on fumigation being done again before release is given in Australia.  Unfortunately, it is the importer that ends up bearing the brunt of these additional costs.

Our suggestion, to avoid the risk of fumigators being struck off mid transit, is that all FCL BMSB fumigation takes place here in Australia for target high risk goods, shipped in sealed six hard sided containers.  This will delay delivery timeframes this end but will avoid having to pay additional costs to have goods refumigated again if an overseas fumigator gets struck off whilst the goods are on the way.

The exception to this would be goods shipped as breakbulk (including flat rack and open top containers).  These must be fumigated offshore, otherwise they are not allowed entry into Australia.  In these situations, we would look to fumigate in the transhipment port where possible where there are usually more options available.

If you would still like your FCL GP/HC containers fumigated at origin, please make your customer service representative aware of this at the time you place an order.

 

PONDUS Fees Becoming More Common

As previously advised, major Australian port operators have deployed the PONDUS system to reinforce adherence to SOLAS regulations.  PONDUS helps to identify and address mis-declared container weights, which is crucial for maritime safety and compliance with SOLAS regulations.

The system statistically samples containers for weighing and automatically notifies customers of weight discrepancies, allowing parties to better meet their Chain of Responsibility obligations.  When a container’s weight diverges significantly from its declared weight (+/- one metric tonne within the documented weight), a “Weight Amendment Fee” is charged.

When shipments are being exported, shippers have two ways to obtain a VGM (verified gross mass) – they can either weigh the goods themselves then add this to the tare of the container or they can use a third party weighbridge service to weigh the container and the goods when packed.  We are seeing more and more weight amendment PONDUS fees being charged this end due to discrepancies between VGM’s lodged by a shipper and weights recorded at the terminal.  An “official” weighbridge docket from origin may have more of a chance of a successful outcome in any dispute with a shipping line/terminal in relation to a PONDUS fee charged.  Unfortunately, we will have no option but to pass these additional costs on when received.

 

Should you require any further information, please do not hesitate to contact your customer service representative.