TT Talk - Major regulation affecting cargo shipments
According to Information Paper 40/2009 published by ICHCA International, security regulations for air and sea cargoes in the EU and US are being made increasingly strict. Already, specific data on the contents of all containers headed for the US must be sent to the US Customs and Border Protection at least 24 hours before loading at the foreign port. The US is now working toward a 100% cargo screening of everything entering the country by 2010 - a goal that many insist is almost impossible. In a separate initiative, the EC is running trials on technology-based solutions for better container security on imports from Asia to the EU.
In the effort to improve security measures, many worry that the costs will be too high, especially in the current times of economic insecurity. These concerns are well-founded, not only when taking into account the monetary strains but also in considering the immense scale of such requirements.
Many believe a more feasible alternative would be a practical, intelligence-led approach to security through an effective selection process for targeting suspicious cargo. The reality is that regardless of the resolution, there is a steady movement toward more stringent security in the supply chain. This must always be taken into account when planning the transport of goods in order to avoid loss.
TT Club and BSI have issued the second edition of their report on global cargo theft, the first to cover a full year. Highlighted findings include: theft from road vehicles once more accounts for the highest proportion at 84%; Slash and Grab the largest type of cargo theft at 26% globally but with significant regional variations; the combination of food, beverage, alcohol and tobacco making up the most common commodity group at 34% and South America topping the regional analysis of median value for each theft at $77,000.
TT Club's experience is that theft remains firmly in the top five claims causes, accounting for about 13% by number and value over the last five years. Much recent attention has been focused on the emerging risk of cybercrime, as internet capabilities are increasingly used to identify, track and intercept cargo. However, case studies abound for the more traditional vulnerabilities, even if potentially aided by electronic means.
The curse of cargo theft continues to impact stakeholders in the supply chain. Analysis of incidents, increased data sharing agreements, collaborations and widespread dissemination of findings, all serve to improve understanding of the underlying risks.
Non-declared or mis-declared cargo entered into the international supply chain, vastly increases the risk to cargo, property, the environment and most importantly the lives of all individuals moving the goods.
