Communication in shipping and logistics through digital platforms among various stakeholders, such as shipping lines, port authorities, freight forwarders, and customs agencies, is essential for international trade. SMDG (Ship Message Design Group) is an organization for electronic data interchange (EDI) in the shipping and logistics industry. It has laid down some SMDG codes for easy and efficient data transfer. It enhances data exchange efficiency in the container freight business. For around 30 years, they have managed this maritime data integration for ocean freight transportation. 

Moreover, in this blog, we will explore what the SMDG code in shipping and logistics stands for, its primary purposes, key activities, and the benefits it offers the shipping business. 

What is SMDG? 

SMDG is a nonprofit organization representing maritime companies’ stakeholders, including container terminals, ocean carriers, and related companies. The name originated in the 1980s when IT experts formed EDIFACT’s United Nations Electronic Data Interchange for Administration, Commerce, and Transport message BAPLIE (BAyPLan). This group is named Ship Message Design Group and sets transport and logistics codes. 

In the 1990s, it became an established organization that more effectively defined EDIFACT messages. Since its establishment in 1987, it has arranged huge international meetings to discuss topics related to standard messages, such as reviewing business procedures and new technologies. They help with supply chain optimization, storage, container transportation, and logistics management. SMDG Code covers SMDG Terminal Code List (TCL). TCL is an international standard for recognizing container terminals concerning electronic communication. 

Understanding the importance of data exchange standardization in EDI

Data exchange standardization plays a significant role in managing Electronic data interchange (EDI). It emerged in the early 1970s to support electronic maritime data sharing. The primary purpose of EDI is to reduce errors, eliminate manual data entry, and streamline communication among stakeholders. This is a vital component of ocean logistics. 

Implementing EDI as a digital logistic solution in your shipping and logistics is challenging. There are various reasons behind this, such as a lack of knowledge about EDI. Most shippers and logistics providers, whether 3PLs or 4PLs, are unaware of the concept and its implementation. The role of SMDG codes in establishing a uniform communication system. Also, neglecting these SMDG codes will lead to inefficiency in data transfer and safety risks. 

EDI and API (Application Programming Interface) are two ways to exchange data. Both have characteristics and features. However, the limit of the API is 100 to 300 items per request, while EDI’s design can handle large datasets efficiently. Under APIs, it may time out if taking too long for large SMDG data management, while EDI is perfect for non-time-sensitive scenarios. 

Purpose of SMDG codes

As we have explored, SMDG code is standardized messages and cargo manifest codes that transmit data in a machine-readable format. It serves various purposes mentioned below: 

1. Data exchange standardization: The SMDG code list offers a uniform maritime transport code set format that can be easily used by all the stakeholders involved in shipping. This uniformity ensures that everyone speaks the same language, decreasing the risk of misunderstanding and data exchange.
2. Guidance to EDI practices: The main motive of these SMDG codes is to guide EDI practices. These standardized transport and logistics codes help to facilitate shipping documents and information exchange. Consequently, this speeds up and increases the quality of operations. 
3. Supporting global trade: These code lists are used internationally to foster global trade. The common infrastructure of global trade helps to make international shipping more proficient. 
4. System interoperability: These codes allow efficient communication among the stages and stakeholders, aligning operations for the global supply chain. 
5. Consistency and accuracy: Using standardized global trade codes increases the accuracy level of shipping and logistics. It decreases the number of errors and documentation or data entries. Therefore, that accuracy ensures that your shipment is compliant with international standards. 
6. Enhanced operational efficiency: This standard set of international trade codes allows you to easily align internal operations and speed up communication with partners, reducing the turnaround time for shipping and logistics operations. 

Types of SMDG code lists

You can access these SMDG code list types through the official SMDG website. You can use the below-mentioned types of code lists : 

1. Container codes: Various SMDG codes assigned for container types ensure easy identification. These container size and type codes allow you to quickly identify containers of different shapes, sizes, and types. 
2. Service codes: SMDG provides shipping codes related to shipping services such as loading and unloading. These codes are used by most industries worldwide. 
3. Cargo codes: Codes that differentiate different types of freight covering oversized and hazardous materials that need special assistance regarding cargo handling. 
4. Vessel codes: There are codes for different types of freight ships used globally. Consequently, this helps to reduce the confusion regarding selecting containers. 
5. Port codes: These are the standardized codes for ports worldwide. They help shippers identify the locations of the container ports where they can load and unload their cargo. 
6. Attributes code list: Attribute code lists detail specific plans and schedules for vessel operations. This SMDG data management code mainly helps to understand the timeline of vessel operations. 
7. Verified Gross Mass (VGM): This is mainly related to codes pertaining to verifying container weights before loading. It has impacted the shipping and logistics industry’s efficiency, proficiency, and security. 
8. Liner code lists: These types of SMDG codes help shipping liner companies identify shipping lines and their services. 

Recent contributions of SMDG codes

SMDG code contributes to the organization of shipping lines, shippers, and customers. The PCACTIVITY code was introduced to document planned vessel schedule events. A key practice is using these codes to recommend EDI transmission for empty tank containers containing residual material.

Some combined code lists create a single Excel workbook for ATTRIBUTES, HANDLING, and STOWING. Moreover, the implications of international trade codes have changed over time. You must keep up with the official website notifications to be regularly updated. All these codes are committed explicitly to ensuring maritime safety through operational messaging. 

There is a code similar to the SMDG code, the BIC code, also called Bureau International des Containers. Both codes aim to adopt smart technologies for shipping containers and ports to address the challenges. 

SMDG Code lists 

The code lists allow the data sharing in a machine-readable format. SMDG maintains the following code lists: 

1. Terminal activity code lists (TERMACT) for activities contributing to terminal performance reports. 
2. Terminal Code Lists (TCL) for container terminals of water vessels with no inland terminals. 
3. DG attribute lists describe the properties and hazards of transferring dangerous goods. 
4. Delay and port call activity code lists describing the reasons for late and scheduled events with transportation.
5. Lastly, VGM code lists cover comprehensive information about SOLAS verification of gross mass. 

SMDG codes, developed by the Ship Message Design Group, are standards for electronic data interchange. These codes facilitate data transfer, align supply chain operations, and support global trade. Understanding the significance of SMDG codes in shipping and logistics for several stages helps make shipping more effective and less costly. You must be aware of the different types of codes and then use them appropriately for your shipment. 

LOTUS Containers offers compliant shipping containers that will suit your cargo needs. We provide CSC plates for the container types. If you collaborate with LOTUS Containers, you will have both facilities under one roof.