How VGM Could Affect Your Marine Insurance

BOZEMAN, Mont. - June 21, 2016 - PRLog -- During the Safety of Life at Sea (SOLAS) Convention in November 2014, the International Maritime Organization (IMO) adopted a new regulation to become global law on July 1, 2016. This regulation requires the mandatory verification of the gross mass of packed containers before being loaded onto ships. Once this regulation goes into effect, the shipper will be responsible for obtaining the verified gross mass (VGM) and providing it sufficiently in advance of vessel loading at the terminal. If this information is not provided for the container, it will not be loaded and will not leave port.

How VGM Regulations Could Affect Your Marine Cargo Insurance

The following are a few ways your marine insurance may be affected by these new regulations. Keep them in mind to make sure that your cargo continues to safely and efficiently make it's way to its final destination.

You can also learn the methods to measure your Verified Gross Mass using the following resource (including an infographic available to download): http://traderiskguaranty.com/trgpeak/verified-gross-mass-...

Delay May not be Covered by Marine Insurance: Calculating VGM adds an additional step in the importing process so it is important to allow ample time for it to be calculated and submitted prior to the shipping date. Since the container will not be loaded if the VGM is not submitted, failure to do so can lead to delays in delivery dates. This delay may not be covered by your marine cargo insurance policy so contact you provider to ensure there will not be a lapse in coverage.

Change in Transit Type: In some case, it may be determined that the cargo will not be allowed to ship via a marine vessel. The switch to an air freight may to made to transport the cargo overseas. The change in transit could affect your marine insurance coverage since the new mode of transportation may not be covered by your current plan. Contact your provider to confirm if air freight is included in your policy.

Route Diversion: If the cargo arrives at a port that is not VGM friendly, the route may need to be diverted. This route diversion will need to be reported to your insurance carrier in order to ensure that it is covered in your policy.

To learn more about Marine Insurance, visit: https://traderiskguaranty.com/sf/marinepresentation.html