- There are several weights involved in a container shipment
- Weight is an important component of container shipping
- Cargo Gross Weight should be the weight declared in a bill of lading
One of the readers of my site had the below question..
Today one of my client was arguing about the gross weight to be declared in the B/L of lading (FCL) shipment. From my point of view I have informed client to mention the gross weight (product weight + packing weight) where as customer says the gross weight should be (product weight + packing weight + container weight).
This question puts doubt in many people in the industry because there are several weights involved in a container shipment and it is one of the main items shown in a bill of lading for the exporter, importer, and of course, the shipping line..
Why is weight an important component in shipping..??
This dates back to several centuries when most commodities were priced and traded by weight, so the seller needs to display/show the right weight for them to be paid by the buyer..
The bill of lading being a receipt for the goods, always showed the weight of the cargo and monies were exchanged based on this..
For example, take look at a copy of a Bill of Lading from 1874 below,(Courtesy of Ahmet Aytoğan).. It shows a trade of 184 pounds of Seeds at 85 francs per ton.. So the correct weight is an important metric for the seller and buyer financially and quantitatively..
For the ship and shipping line, the weight is important to ascertain how much cargo has been loaded on board the ship to operate it safely and within its allowed deadweight carrying capacity (DWCC) and in the case of container shipments, to ensure that the stowage is done correctly..
Weights in containerized shipment
In a containerized shipment, several weights are used..
- Cargo Net Weight – is the weight of just the raw cargo (say for example – Peppadews)
- Cargo Gross Weight – is the weight of the raw cargo (example – Peppadews) + the weight of bottles or cans that it is packed in.. If the bottles and cans are further packed into cartons which are placed on a pallet, then the weight of the peppadews + bottles + cartons + pallets = Cargo Gross Weight
- Container Net Weight – is the Cargo Gross Weight after it has been packed into a container – but excluding the tare weight of the container
- Container Gross Weight – is the Container Net Weight + the tare weight of the container
- Tare Weight – is the weight of the empty container (download general internal dimensions and tare weight information)
This trading by weight tradition continues even in containerized shipments and in commodity trades, the buyer pays the seller “X” amount per kilo or ton of cargo that is traded..
Imagine a buyer is buying 20 tons of Chrome Ore and the negotiating/qualifying document used is the bill of lading.. Let us say this bill of lading shows the weight as 22.25 tons including container tare weight (but it is not mentioned separately)..
The buyer will end up paying for 2.25 extra tons (tare weight of the container) which they are not receiving from the seller whereas the seller will benefit from this extra weight that has been charged..
Therefore the weight of the cargo is of paramount importance to both buyer and seller.. The tare weight of the container is not considered in this equation..
A container is merely a CTU (Cargo Transport Unit) used for the safe transportation of the cargo and does not form part of the cargo itself..
So the answer to the question “Which weight should be declared in a container bill of lading” is – it should be the Cargo Gross Weight..
Weight heading by shipping line
Different shipping lines have different headings for weights on their bills of lading and there is no differentiation in their terms and conditions..
If you look at the heading of the weight column on the bill of lading of the top 10 container shipping lines in the world, we can see why some people might be confused as there is no uniformity in the way the lines have defined their headings or what weight is expected to be declared..
BIMCO and FIATA both show the heading as Gross Weight on their bills of lading..
Although the headings on most bills of lading (except MSC and CMA-CGM) don’t explicitly state that “Weight” and “Gross Weight” refer to “Cargo Gross Weight,” in practice, it is always the Cargo Gross Weight that is shown on the bill of lading..
Additionally, in many cases, the goods are already manufactured, packaged, and prepared for container packing with a packing list, and sometimes even invoiced by weight to the buyer, well before the container number and tare weight are known.. Therefore, this detail is not included in the gross weight listed on the bill of lading..
In my view, this is also further evident from the terms and conditions of the liability of the carrier which says something like “The Carrier’s liability for loss of or damage to the Goods shall in any event not exceed 666.67 SDR units per package or unit or 2 SDR units per kilogram of gross weight of the Goods lost or damaged………..”..
The carrier certainly would not include the “container weight” as part of this gross weight as it would increase their liability.. 😊
Conclusion
With the adoption of global document and data standards, this issue of uniformity of terminology should be settled..
As an example,
- DCSA Data overview for the Bill of Lading 3.0 standard identifies weight as “The weight of the cargo item including packaging being carried in the container. Excludes the tare weight of the container. A maximum of 3 decimals should be provided.“
- The Key Trade Documents and Data Elements by ICC DSI identify weight as “Total gross weight (mass) of all goods items referred to as one consignment including packaging but excluding any transport equipment“
So in summary, the bill of lading should always show the weight of cargo in a containerized shipment, whether it is in a packaged form like crates, boxes, drums etc, or in a bulk form like some mineral cargoes..
This article has been republished after some critical updates..
So what happens when buyer needs to show net weight of the cargo – 25 metric tons plus the packaging (bags) weight – 0.052 mts at destination (total net weight to show on BL should be 25.052 mts for POD) but at the POL customs will tally the net weight of the cargo -25 metric tons (not including the packaging) with export docs. So how do we resolve this issue as both the countries have different rules. Is there any solution for this? What is the standard rule and what weight should be declared on Bill of Lading.
Please do not forget that in terms of SOLAS every container must have a Verified Gross Mass prior to being loaded on board any ship, even if it is empty. There are 2 permissible methods of obtaining the VGM.
Hi Hariesh
Would you please check/confirm what you mentioned “Container Gross Weight – is the Container Net Weight + the tare weight of the container”.
Normally Container Gross weight should consider “Cargo Gross Weight+the tare weight of container”
Regards
Hello Mondher, yes you are right.. But Container Net Weight (weight of cargo in the container without tare weight) is same as Cargo Gross Weight.. 🙂
I read your blog every day. Thanks for updating us and providing us with your valuable input as an expert in shipping.
Thank you sir.. 🙂
Which weight should be declared in a container bill of lading in case of ISO tank
Dear Readers,
in all of the containers you can see at the right door as follows (example) :
It’s for 40 FCL Hi Cube Refer ctntr :
GROSS WT : 34,000 Kgs
PAYLOAD : 29,700 Kgs
TARE WT : 4,300 Kgs
Tare weight is Empty ctnr weight
Payload is : maximum Cargo gross weight ( Net weight of the product loaded + packaging + pallet if any) = 29,700 Kgs maximum
Gross weight = Cargo gross weight + tare weight = 34,000 Kgs maximum.
The terms of “WEIGHT” that will be appear on the BL is NETT WEIGHT and GROSS WEIGHT of our cargo, NOT included weight of the empty container.
If any restriction of container weight at destination country, we can adjust the gross weight of the product that will be loaded.
thank you,
Shipping Lines issue Delivery Orders as per the gross weight mentioned on the B/L and the same has to be strictly declared to Customs.
So for example if the B/L shows the “gross weight” including the tare weight of the container:
A unit weighs 1000 Kg.
Tare weight of container 2000
I get the Delivery Order form Shipping line showing “gross weight as 3000 Kg.
I clear shipment from port and Customs as per Delivery Order and B/L
Later I export the shipment
So I have to declare 3000 Kg on export declaration for tax refund purpose but the shipping line says the gross weight should include tare weight of container, they again add 2000
Shipment now becomes 5000 Kg??!
I can not thank you enough for all the help I received trough this blog.
Being hired last July as Foreign trade agent (no previous experience nor related education) and STILL learning from you, we might say you own 80% of the credit for my succes.
Best wishes , it is so comforting knowing there is people so generous around the globe 🙂
You are most welcome Pamela.. Glad to be of assistance.. 🙂
In Bill of lading,we have to show Gross weight + Net weight of the cargo.
Actually BL should read Net cargo + packing weight + Tare weight as Gross weight, this should reflect on the BL. The importance of the Gross weight is due to weight restriction in European and US destination.
Well, I did come across a shipment from Germany and the HBL unfortunately showed the Container Gross Wt, instead of the cargo gross wt. In Doha, all docs have to show the gross wt and they all must tally. Unfortunately, the weight manifested with the customs, was the Container gross wt(based on what was declared on the BL) and it had to be amended before clearance could commence.
Normally, we insist that the cargo gross wt be shown. And that it tally with the weight declared on the Comm Inv, PL & COO.