Regulatory compliance issues can create unlikely bedfellows

While there’s always been a lot of talk about ocean shipper/carrier collaboration, most of the examples have been largely symbolic. A recent exception to that rule, though, surfaced this week with the announcement that Members of the Agriculture Transportation Coalition (AgTC) and the Transpacific Stabilization Agreement (TSA) would work together to address fresh amendments to the International Convention for the Safety of Life at Sea (SOLAS).

Effective next July, new rules will require shippers and NVOCCs to supply a verified total container weight (including contents) to the vessel master and terminal operator as a condition for loading aboard a ship.

All the ocean cargo stakeholders are concerned that the initial implementation of these amendments will further add to the port congestion problems they encountered earlier last year. As a consequence, they’ve formed a “Working Committee” to create best practices.

The committee brings together a diverse industry coalition to discuss timing, feasibility, and documentation requirements. The committee is currently comprised of 25 AgTC member shippers and truckers, eight ocean carriers, and three software providers. It may be expanded to include other key participants in the supply chain, such as terminal operators, port authorities, and logistics managers.

“The goal is to keep cargo moving through our US ports, without causing further delays or congestion,” says Peter Friedmann, AgTC Executive Director. “We have much to do in a very tight time frame.”

Donna Lemm, Chair of the Working Committee and AgTC Advisory Board member, concurs, noting that ag shippers have a “good basis” for collaboration…though most of us can’t recall such a precedent.  Indeed, the rancor of last June’s AgTC annual meeting reached record levels when ocean carrier rates and service issues were raised.

Brian Conrad, TSA Executive Administrator, is trying to move past that episode, however, observing that members are each carrier member will implement their own protocol independently of one another, but that the committee “provides an exceptional forum” to hear from U.S. shippers before the rule goes into effect.”

To further that goal, a Refrigerated Cargo Sub-Committee has also been established, chaired by Perry Bourne of Tyson Foods.

“Refrigerated shipments are particularly complex and sensitive to any delay,” says Bourne. “Our objective is to ensure that these new rules do not hinder U.S. refrigerated exports.”

Cheers to that.