What does the phrase “Cargo Security” mean?

Cargo requires efficient logistics... logistics connect the world economies... protecting our economy means protecting our way of life.

Security requires optimum control... control represents safety... safety is the world's foremost priority.

In order to properly assess the global cargo security threats it is imperative to recognize the following guidelines to achieve effective global cargo security:

• Logistics efficiency and cargo security must be interdependent
• Solutions must be global and not tailored to specific countries or industries
• Cargo security extends beyond shelf-to-shelf
• Provide multiple security agencies with real-time global shipment activities
• Corporate and individual shippers market must be addressed
• Proactive global real time data is a must to flag suspicious shipments
• Emergency shipment re-routing is required
• Compliance with cargo security rules must be at minimal work efforts & cost

THREAT

The complexities of global logistics are burdened by international security initiatives which came about after September 11, 2001.

The U.S. government has spearheaded current initiatives, as the U.S. Department of Homeland Security and the Bureau of Customs and Border Protection have the “dual challenge of protecting US citizens and our borders from terrorists and the implements of terror while facilitating the flow of legitimate trade.” Nevertheless, these security initiatives have resulted in significant overlaps and have created tremendous logistics and economic burdens.

Security-oriented programs include the 24-Hour Advance Manifest Rule (24/AMS) for sea cargo, and (2–8/AMS) for land and air cargo. Customs Trade Partnership Against Terrorism (C-TPAT), the Container Security Initiative (CSI), Importer Self-Assessment (ISA), and Free And Secure Trade (FAST) Programs are additional initiatives.

These are just a few of the programs that exist in the U.S. today, as many other cargo security initiatives exist around the world.

The flow of a shipment has been broken down by tasks. This is due to the fragmented nature of global shipping previously discussed. Given this reality, the U.S. Department of Homeland Security had little choice but to segment the shipment flow and apply initiatives on each segment separately.

This has led to many overlaps in the process as one shipment may be impacted by five different initiatives from Customs & Border Protection alone. Any given entity may also be impacted by multiple initiatives, as illustrated below by the multiple circles around each participant.

Despite the fact that thousands of shipping containers enter national borders daily, at present cargo security compliance is not a high priority to many foreign governments and global logistics industry participants. Current international cargo security initiatives are creating economic and logistics burdens which force involuntary compliance / participation, resulting in ineffective cargo security measures worldwide. International cargo terrorism counter measures are then forced to focus on threats which have already reached a nation’s soil. At this point, it is too late!

Top of page

ECONOMIC IMPACT

Global cargo security threats have significantly contributed to increased global landed import and export costs. This results in added costs to importers and renders exports less attractive to trade partners, thus contributing to national trade deficits.

According to a Booz Allen’s War Game Studies, at current preparedness levels, a ‘dirty bomb’ attack on U.S. strategic ports could cost U.S. businesses about $58 billion.

In a strategic simulation of a terror attack designed to thoroughly assess America’s vulnerability through its ports, a group of business and government leaders found that such an attack could potentially cripple global trade and have a devastating impact on the nation’s economy.

Top of page

VOICE OF THE INDUSTRY

The following hyperlinks are the voices of the global logistics industry when addressing cargo security.

"Building Security into the Supply Chain" >
"Customs Rattles the Supply Chain" >
"Trade Security at Sea: Setting National Priorities for Safeguarding America’s Economic Lifeline" >

Top of page