Company News

Incoterms 2020

Happy New Year!

 

January 1st implements the revised Incoterms 2020 announced from the International Chamber of Commerce.  There are two key changes to Incoterms® 2020:

  • DAT (Delivered at Terminal) is renamed Delivered at Place Unloaded (DPU)
  • FCA (Free Carrier) now allows for Bills of Lading to be issued after loading 

Some other key changes include:

  • CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid to) set new standard insurance arrangements, although the level of insurance continues to be negotiable between buyer and seller
  • Cost allocation between buyer and seller is more precisely stated where applicable
  • FCA (Free Carrier), DAP (Delivered at Place), DPU (Delivered at Place Unloaded), and DDP (Delivery Duty Paid) now take account of buyer and seller arranging their own transport rather than using a third party
  • Security-related obligations are now more prominent.

Useful information:

The Incoterms® do not constitute a complete contract of sale, but rather become a part of it.  For its application, the following structure should be used:

 

“[The chosen Incoterm® rule] [Named port, place or point] Incoterms® 2020”

  • Example: “CIF Shanghai Incoterms® 2020” or “DAP 10 Downing Street, London, Great Britain Incoterms® 2020“

 

If there is no year stated in the Incoterms® then the following applies:

  • until December 31st, 2019 the Incoterms® 2010 apply.
  • from January 1st, 2020 the Incoterms® 2020 apply.
  • If a different year is stated, e. g. Incoterms® 1980, then respective terms apply.

 

 

On behalf of your sales team at GlobeRunners, I want to thank you for your business in 2019 and welcome you to new ventures for 2020!  Please let me know how I may assist you to develop your business in this New Year!

 

Incoterms2020.pdf

Our Minnesota Office has Moved

We are happy to announce that our Minnesota office has moved to a new location on August 14th 2017.  Our new address is:

 GlobeRunners Inc.

7300 Hudson Blvd, Suite 200

Oakdale, MN 55128

The Safety of Life at Sea (SOLAS) Container Weight Verification Requirements

As you are already aware, The Safety of Life at Sea (SOLAS) Container Weight Verification Requirements relating to weight verification requirements will go into effect July 1, 2016. These weight verification requirements were promulgated by the International Maritime Organization which adopted amendments to the International Convention for the Safety of Life at Sea. These will be mandatory globally on all containerized maritime shipping. Below are updated guidelines for compliance with the SOLAS requirements. These guidelines are subject to change, as there are still many issues being worked out and discussed among the many parties affected by this new rule. We expect changes and updates in the coming weeks and we will keep you advised of such changes.

In order to meet the requirements of SOLAS, shippers will need to adhere to the following procedures:

  • SOLAS regulations provide for two separate methods to obtain the Verified Gross Mass (VGM) of containers:
    METHOD 1: Weighing the entire packed container, using calibrated and certified equipment.
    OR
    METHOD 2: Weighing all packages and cargo items, including the mass of the pallets, packaging, dunnage, strapping, and all other material to be packed in the container and adding the tare mass of the container as noted on the container doors to the sum of the single VGM (Container contents + container tare)
    OR
    The Exception to Method 1 and 2 above: Contents packed by Shipper and contents were original sealed packages that had the accurate mass of the packages and cargo items (including any other material such as packing material and refrigerants inside the packages) clearly and permanently marked on their surfaces.
  • Exporters tendering containers to GlobeRunners as an NVOCC will have to provide a signed Verified Gross Mass (VGM) Certificate with the VGM calculated using either Method 1, Method 2, or the Exception Method noted above to GlobeRunners; VGM Certificates provided directly by the Shipper, or if an outside 3rd party is utilized by the shipper to provide the certification, the VGM certifications shall be on behalf of both the Shipper and GlobeRunners, and that fact shall be noted on the VGM Certificate, at Shipper’s expense; if GlobeRunners is requested to obtain a gross weight certification on behalf of Customer, it shall be at the expense of Shipper and service charges may apply. To the extent that the VGM is signed by a person on behalf of both the Shipper and GlobeRunners, this Notice shall serve as authorization to that person to sign the VGM on behalf of GlobeRunners.
  • Shippers must provide a Verified Gross Mass (VGM) to GLOBERUNNERS in advance of vessel loading.
    • OCEMA BEST PRACTICES release has advised that the VGM cutoff is likely to be approximately ½ working day prior to the vessel cutoff in the case of a NO VGM, NO LOAD policy. This is currently not a firm cutoff time and is based solely on currently available information released by the ocean carriers. Updates will be provided as more information is made known to GlobeRunners.
    • However, terminals reserve the right to have a NO VGM, NO GATE-IN policy if they choose. In such a case, the estimated VGM cutoff for such a terminal would be approximately 2-3 hours prior to the gate-in of the container. IT CURRENTLY APPEARS THAT MOST, IF NOT ALL MARINE TERMINALS IN THE UNITED STATES WILL IMPLEMENT A NO VGM, NO IN-GATE POLICY, meaning VGM will need to be submitted BEFORE the container can be ingated at the terminal. It is not clear at this time what procedure and policy will be put in place at rail ramps.
    • Exact VGM cutoffs will be provided along with booking confirmation when bookings are made.
  • The Certification must be “signed”, meaning a specific person representing the shipper is named and identified as having verified the accuracy of the weight calculation on behalf of the shipper and/or GlobeRunners.
  • The VGM can be submitted to GlobeRunners via a portal on our website (www.grunners.com). We can also set up an EDI link with our shippers who will have that capability. VGM can also be submitted manually (email or fax) and there are also various industry platforms being set up to achieve this electronically.
  • The VGM information required is as follows:
    • Booking number
    • Container number
    • VGM
    • Unit of Measure (KGS or LBS)
    • Responsible Party (shipper) Name, Address and Contact Information
    • Method utilized to accomplish the VGM requirements.
    • Name of Authorized Person in ALL CAPS along with position
    • Date
  • Containerized cargo WILL NOT BE LOADED unless the shipper has provided a VGM. However, please note as stated above, that it currently appears most or all terminals may opt to be NO VGM, NO GATE-IN in which case the container would not even be accepted at the terminal until the VGM is received by the terminal. The trucker would be turned away at the gate.
  • Costs incurred by the vessel operator or terminal operator due to missing, incomplete or inaccurate VGM shall be for the account of the Customer / Shipper
  • All costs, charges and penalties arising due to missing, incomplete or inaccurate VGM (such as dry runs, trucking charges, cargo re-handle, export demurrage, etc) shall be for the account of the Customer / Shipper.
  • Vessel operators will establish “cut-off times” by which they must receive the required container weight verifications and we will advise those cutoff times to our shippers on our booking confirmation.

Customers Suggested Preparations:

In summary, the above requirements can result in cargo being rolled over; in costs related to non-loading of cargo due to overweight or not obtaining appropriate VGM; costs related to having to obtain appropriate certifications; and any number of other consequences involved in the implementation of these requirements. Customers should take the time now to start planning on these matters, and to commence making arrangements with third parties, including GlobeRunners, to accomplish these requirements well in advance of the implementation date.

What Are the SOLAS Container Weight Verification Requirements and How Will They Impact You?

 The Safety of Life at Sea (SOLAS) Container Weight Verification Requirements relating to weight verification requirements will go into effect July 1, 2016. These weight verification requirements were promulgated by the International Maritime Organization which adopted amendments to the International Convention for the Safety of Life at Sea. These will be mandatory globally on all containerized maritime shipping. What do these require and how will they impact Exporters?

 The requirements:

  • Shippers must provide a gross weight certificate to the ocean carrier and the port terminal operator in advance of vessel loading.
  • The Certification must be “signed”, meaning a specific person representing the shipper is named and identified as having verified the accuracy of the weight calculation on behalf of the shipper
  • Containerized cargo will not be loaded unless the shipper has provided a verified weight certificate.
  • World Shipping Council (WSC) requirements will apply to all cargo tendered by forwarders and NVOCCs as well as by beneficial cargo owners. (The WSC is the major global ocean carrier organization which has most of all container operators as members; therefore how SOLAS will be implemented by WSC will become the global standard).
  • WSC has stated that NVOCCs such as GlobeRunners, as “shippers”, will need to separately verify the container weight prior to having the cargo loaded. 
  • Exporters tendering containers to Globerunners as an NVOCC will have to provide a signed gross weight certificate to Globerunners; if an outside 3rd party is utilized by the shipper to provide the certification it shall be on behalf of both the Shipper and GlobeRunners, at Shipper’ expense; if GlobeRunners is requested to obtain a gross weight certification on behalf of Customer, it shall be at the expense of Customer.
  • Costs incurred by the vessel operator or terminal operator due to SOLAS issues shall be for the account of the Customer.
  • SOLAS regulations provide for two separate methods to obtain the verified gross weight of containers:
    • Weighing the entire container, using calibrated and certified equipment.
    • Weighing all of the packages that are stowed in the container, including pallets, dunnage and other packing material, and adding the tare weight of the container.
  • Vessel operators will establish “cut-off times” by which they must receive the required container weight verifications.

Customers Suggested Preparations:

  • Identification of facilities that possess the required certified weighing equipment.
  • Review of insurance policies to insure coverage of costs arising from SOLAS issues.
  • Commence preparing with GlobeRunners for SOLAS by planning with GlobeRunners in the allocation of responsibilities, costs, and identification of staff involved in the process.
  • Staying abreast of developments as the implementation date approaches.

In summary, the above requirements can result in cargo being rolled over; in costs related to non-loading of cargo due to overweight or not obtaining appropriate Certificates; costs related to having to obtain appropriate certifications; and any number of other consequences involved in the implementation of these requirements. Customers should take the time now to start planning on these matters, and to commence making arrangements with third parties, including GlobeRunners, to accomplish these requirements prior to the implementation date. 

We have grown!

We are happy to announce the opening of our new office in Carlsbad, CA

 GlobeRunners Inc.
5927 Priestly Drive
Suite 103
Carlsbad, CA 92008
USA
Phone: (760) 710-2555
Fax: (760) 710-2522

 

GlobeRunners ranked 5th for 2014

The Journal of Commerce has ranked GlobeRunners as the 5th largest containerized exporter from the United States.

During 2014 GlobeRunners exported 89,406 TEU's.

GlobeRunners ranked 6th for 2012

The Journal of Commerce has ranked GlobeRunners as the 6th largest containerized exporter from the United States.

During 2012 GlobeRunners exported 84,002 TEU's.