CHALLENGES & BENIFITS OF VERIFIABLE GROSS MASS (VGM)

CHALLENGES OF THE VGM ON NON - OIL EXPORT

 Weigh bridge operators and Terminal operators may convert the

opportunity for extortion.

 Shippers are bound to inherit additional cost through the container

weighing charges.

 Elongation of the already cumbersome clearance process

 Terminal Operators would be looking at how to earn more rent

through default by the shipper or his freight forwarder.

 Shipping Company also will target the collection of demurrage for

exceeding the allowable number of days for the free use of the

empty container book for stuffing export cargo.

 Customs formalities may become more cumbersome, as this new

requirement may now form part of the clearance procedure.

 Patches, welding, wear and tear may alter the actual weight of the

tare mass of the container

 Integrity of the weigh bridge might be in doubt

 Manipulative tendencies may not be ruled out in the process

 May add to delay and congestion in the ports if only a single weigh

bridge is constructed at each port.

 Power instability could be an impediment.

 Does not help to check manipulative tendencies on import containers

 Does not guarantee checks on the manifest falsification and under

declaration of the tonnage on vessels at port of destination.

 May lead to high extortion of exporters and freight forwarders

 Shipping companies and terminal operators may create internal

policies that could lead to hindrances and interruptions in the

BENEFITS OF VGM ON NON OIL EXPORT

 The safety of the shippers investment is guaranteed

 Check incidences of overcharging of the shipper

 Remove speculative tendencies

 Reduces concealment and under declaration

 Promotes transparency and integrity of the supply chain.