Thursday, November 4, 2010

Definitely a Game Changer


The results of the mid-term elections? The Democrats loss of the House and bare retention of the Senate? The obviously huge backlash by the voters against “whatever is wrong with this economy, so let’s throw the bums out”? The question of whether Congress can do anything for two years given the realignment plus an archaic filibuster rule in the Senate? OK, I’ve covered the obvious, but since the entire focus of the nation is on these issues, and while you will be “bombarded” by sage analysis for weeks, I’ve decided on the “other” game changer: how air and sea cargo will be changed because of the latest bomb scare from Yemen.

While some ports – like Hong Kong – have instituted some pretty sophisticated mega-scanning equipment for containers, and explosive-sniffers (machine and canine) are common in the world of air cargo, the reality is that air cargo is one of the least monitored aspects of border-crossing out there. And since cargo often transitions from one carrier to another – particularly in the air – very often the belly of the carrier is carrying its share of pure cargo while hundreds of passengers sit above without the slightest thought that they may be riding a streetcar on the road to heaven. For the most part, deterrence has taken the form of great intelligence from electronic intercepts, to on-the-ground efforts that have often paid off big. But clearly, this is a ticking “time bomb” that will – sooner or later – spell a massive fatal disaster (probably more than a few) for the unlucky people at the wrong place at the wrong time. Worse, bomb-making has definitely progress to the point where very small amounts of deadly material can destroy very large aircraft in flight.

The November 2nd AOL Travel points out the massive re-think going on at Homeland Security as well as the countless relevant other agencies at governmental offices all over the world: “‘It's definitely a game-changer,’ said one Transportation Security Administration executive who asked not to be identified. ‘We're not sure what new policies will come from this but there are plenty of people talking at this moment.’” While private industry has taken some steps – like major private carriers and many airlines now refusing to handle any cargo emanating from civil-war-torn Yemen – the big answers still lie with the big governmental bodies charged with security.

There is a balance to be found, particularly during a recession where international trade is vital for any semblance of a “recovery” however slow it may become. Grinding international shipments to a halt to examine everything carefully is simply not possible and not in the cards. What’s the story in the U.S., particularly where cargo gets onto passenger carriers? “"Even before this incident, 100 percent of identified high-risk cargo on inbound passenger planes was being screened,’ said [TSA head John] Pistole [at a recent conference in Germany]. ‘Further, all cargo flying to the U.S. on passenger or all-cargo planes is held to TSA security standards that include specific requirements covering how facilities and cargo is accessed, the vetting of personnel with access to cargo, employee training and cargo screening procedures. All international inbound aircraft carrying cargo must provide cargo manifest information to our partners at Customs and Border Protection prior to arrival on long-haul flights and at wheels-up on flights from Canada, Mexico, and the Caribbean, for additional screening upon arrival in the U.S.” AOL

Yeah, but the explosives almost made their way into the U.S. and into the delivery channels to those targeted synagogues in Chicago. How do authorities deal with the routine shipments of cargo? Not well, apparently. “At the conference in progress in Germany, Giovanni Bisignani, director-general and CEO of the International Air Transport Association, noted how the events in Yemen have put cargo security at the top of this [convention’s] agenda. Airfreight drives the world economy, representing 35 percent of goods traded internationally. ‘Transporting these goods safely, securely and efficiently is critical,’ said Bisignani.

“‘The entire supply chain, from manufacturer to airport, has a responsibility for secure shipments. The supply chain approach must be driven by government and industry cooperation on investment, process es, technology, and risk assessment. Airport screening cannot be our first line of defense but it is an effective complement to intelligence and supply chain solutions… Currently, there is no government-certified technology to screen standard size pallets and large items. There is some promising technology but it is taking far too long to move from the laboratory to the airport. We must speed up the process,’ said Bisignani.” Time is not on our side, and given the current press to curtail government spending, let’s see if these modernization programs are impaired.

I’m Peter Dekom, and I am afraid of those who are inspired by the weakness in global cargo shipping.

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