UAE mandates cargo insurance for shippers and freight forwarders

A new UAE rule requiring shipping companies and freight forwarders to file cargo details before loading took effect on October 1, The National reported.

The maritime pre-load cargo information (MPCI) program, run by the National Advance Information Centre (NAIC), aims to boost cargo security.

What is the UAE MPCI program?

MPCI requires ship operators and freight forwarders to send cargo details, including shipper and consignee information, to NAIC before a ship leaves the loading port. NAIC then issues one of three decisions: acceptance, request for information or do not load. Rejected containers cannot be loaded onto the ship.

The program covers cargo bound for, passing through or transshipping via the UAE. It also covers freight remaining on board at UAE ports. It was launched in July last year.

MPCI was meant to become mandatory from March 31. The date was pushed back to September 30 because of the Iran war.

How does MPCI filing work?

Previously, ships had to submit data on the cargo they planned to offload at least 48 hours before arrival. Shipping lines and freight forwarders filed it with customs authorities at the port.

That process stays in place when the ship arrives. The new filing to NAIC is an additional step before departure from the loading port.

Filers can use direct integration with NAIC, which is open to shipping lines only. All filers can also use an accredited service provider.

Will MPCI enforcement be phased in?

NAIC said MPCI filing remains mandatory, but some enforcement measures will be introduced progressively. This will give stakeholders more time to prepare their operations.

Maersk said request for information and do not load notifications will be phased in. It said shipments submitted during this period are expected to be approved for loading. Customers should not face shutouts or cargo retained on board because of the current regional situation.

Maersk said non-compliance will first be handled through formal communications and warning notices. CMA CGM warned that consignments without an MPCI reference number or all mandatory data may be rolled over to the next vessel.

Why did the UAE introduce the MPCI program?

NAIC said the initiative is part of efforts to raise security standards and strengthen the safety of maritime cargo. It also aims to improve communication with carriers operating through UAE ports. NAIC was set up to boost the efficiency and security of the country's ports, borders and free zones.

The program shifts cargo security checks to before loading, rather than after cargo reaches its destination.

Binai Thoppil, chief operating officer of accredited service provider ODeX, said the filing will give better visibility of expected cargo. He said this will help planning across the industry. He added that similar filings have been in place in the US since 2004 and in central and western Europe in recent years.

What are the penalties and costs for MPCI filing?

Late submissions, missing filings or incorrect data will be considered a violation and may result in fines, according to NAIC.

NAIC does not charge filing fees. Third-party service providers may charge, depending on their pricing model.

Thoppil said all large logistics service providers have started regular filings. He said the process is simple because the information is already available in the bill of lading.

He said the added cost to customers is minimal. Each filing may cost a few dollars, compared with thousands of dollars in freight and cargo value.