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New Rules on Cargo Weights Could Impact U.S. Exports

Feb 25, 2016

New rules scheduled to take effect in July of 2016 could adversely affect export cargo shippers. While it may primarily impact container cargo, it could significantly impact the soybean industry’s livestock customers as well as some soybean exports directly, similar to the disruption experienced at West Coast ports during the labor dispute last year.

The rules will require that shippers verify the weight of cargo and containers for steamships and terminal operators before being loaded onto vessels. The rules, which come from the U.N. International Maritime Organization, are intended to protect ships, their crews and their cargoes from overcapacity that can lead to ships capsizing.

At a recent hearing held by the Federal Maritime Commission in Washington, D.C., U.S. Coast Guard Admiral Paul Thompson told agriculture shippers and marine terminal and steamship line representatives that delaying the new rules are not a good option because it would send a message to foreign countries that goods can't be safely loaded onto ships in America.

Representatives from the shipping community, including agricultural groups and agri-businesses argued that a system for verifying cargo weight is already working in the U.S. and the new requirement will create unnecessary delays at U.S. ports.  The rule is aimed at countries that grossly overload containers, which hasn't been an issue for the U.S.  Furthermore, the requirements could put U.S. exports at a disadvantage to foreign competitors if countries, such as Brazil, do not enforce it to the same extent as the U.S.