Cargo Security By-lined ArticleTelematics: just one aspect of a layered approach Introduction The transfer of goods across borders is growing. As global trade continues to increase, the danger of weapons or a terrorist entering a country in a cargo container is a very real threat. The incident at the Port of Ashdod in March 2004, involving the apprehension of an Al Qaeda operative, by Italian authorities, hiding in a container on route to Canada, highlights the fact that “the container is the Trojan Horse of the 21st century”, as commented Robert Bonner, US Commissioner for Customs and Border Protection. There is widespread agreement throughout the logistics industry that the tracking of cargo from point of origin to its final destination is one of the best ways to improve security in the supply chain. Technology is at the forefront of making this happen. This includes the real time tracking of containers, the use of sensors to identify whether a container has been tampered with and an audit trail to identify who has opened and inspected it. The real time tracking of goods, together with the electronic transfer of information and documents will make the supply chain increasingly efficient, whilst reducing costs and providing tighter security. Widespread debate throughout the industry sought to answer this question. A number of initiatives have been launched, each trying to define an approach towards Telematics.
An article by Hau. L. Lee and Michael Wolfe entitled ’Supply Chain Security Without Tears’, in the publication Supply Chain Management Review, argues that it is possible to use the principles of Total Quality Management (TQM) with Telematics to improve security without jeopardising effectiveness. Lee and Wolfe argue that a change of focus from ‘inspection’ to ‘prevention’ will reduce costs and improve efficiencies, providing a win - win situation whilst strengthening security. A variety of standards have looked at the issues surrounding security and Telematics. The following debate looks at the different standards and their likely impact upon the industry. Standards and Systems
Without a national or international standard for supply chain security, Operation Safe Commerce was designed to evaluate ‘off the shelf’ technologies. Its aim is to develop a solutions architecture that would form the basis of an international standard for a secure supply chain. Companies could then select the solutions which best met their purpose and complied with the standards. Project GlobalSecure is an initiative within Operation Safe Commerce. ADT Security Services, along with Boeing, Parsons Engineering, Iridium Satellites and Global Maritime Security Systems are all partners within the project. The GlobalSecure System has a number of attributes and features, including loss prevention, content assurance, inventory management and asset tracking. The scope of GlobalSecure is vast, beginning at the item level and continuing throughout the entire supply chain up to and including the point of distribution. At critical points throughout the supply chain, the necessary physical security standards provide validation and verification that each of the processes, including remote monitoring is being met. Key processes such as loading boxes, forming pallets, stuffing containers, sealing containers, moving containers onto ships, offloading ships, the movement of containers throughout supply chain distribution points, and unloading containers will be monitored and the data recorded. The data will be stored on a secure command and control network. Contents of boxes, pallets, containers, and ships will be automatically recorded and transformed into manifests and transmitted via a secure channel to authorised recipients. Containers will be fitted with a tamper-proof seal, redundant intrusion detection and reporting system, and a wireless communication transmitting device to provide periodic position and by exception reporting. The capital expenditure and ongoing costs of any such ‘open’ system will include input from each members of the logistics chain.
The ISPS Code sets out to provide a secure environment for the transportation of cargo by sea. It also ensures that the organisation transporting the cargo is able to demonstrate compliance at all times. Implementation of the code allows compliance with TQM principles, such as detecting out-of-control stock. The ISPS code requires the carrier to demonstrate their compliance. Existing vessel operators have in the past commented that the burden of security on the crew may lower their effectiveness. This criticism has been addressed and a number of operators are now providing additional crew, greater training and monitored security systems for their vessels as they strive to maintain best practice. One of the biggest weaknesses is the lack of reliable ‘credentialing’. This is the ability to provide a recognised proof of identity for each employee, after background checks have been carried out. All Seafarers and transportation workers have ongoing contact with cargo. Examining every employee’s history is a major requirement. In the U.S. a new Transportation Worker Identification Credential (TWIC) is currently being rolled out. While this is happening, the International Labour Organisation’s standard for identity documents for the world’s 1.2million Seafarers has come into force. ‘Credentialling’ is a major step in securing the logistics and transportation infrastructure while giving employees the freedom of movement they need to carry out their work.
Initiatives like C-TPAT, enforced by US customs and Authorised Economic Operator, enforced by the European Union, address a variety of questions, such as: a) How do we know that the correct goods have been loaded into the container? b) How do we know that goods have not been tampered with in transit? c) How do we know that goods manufactured do not have any unapproved matter included? The C-TPAT initiative brings together a number of issues, including: - Vetting of personnel In TQM terms, these provide the foundation on which to build ongoing prevention disciplines. For example, Pickers and Packers could each be identified within the goods documentation paperwork. Industry best practice would require cross checking at each stage. Best practice implementation of the procedures highlighted would add another layer of security to deal with a potential terrorist threat. In a study conducted by The Journal of Commerce and Unisys in late 2004, more than three-quarters of the 650 professionals surveyed stated that the greatest weakness in supply chain security lies within the first links of the chain: where cargo is loaded or en route to seaports. C-TPAT/Authorised Economic operator initiative has an important part to play in strengthening this area of the supply chain.
The Container Security Initiative (CSI) identifies high risk containers using risk criteria, including an Automatic Targeting System (ATS) and Intelligence Database. The use of intelligence together with other risk based criteria is one way the supply chain can react to changes in the security environment. This allows flexibility in tackling the unpredictability of a terrorist. The 24 hour manifest rule and the new EU Customs Code require information regarding each container to be submitted prior to the cargo being loaded. This allows the information to be fed into the risk based ATS system or a World Customs Organisation Intelligence Database. The CSI allow high risk containers to be screened prior to loading, allowing discrepancies, in TQM terms, to be identified in the ‘process’ stage rather than at the final destination. The process defects can then be resolved to prevent a recurrence of the problem. The Future There is still an enormous amount of work to be done to develop industry standards. This will need co-operation between the maritime and logistics industry, as well as the International Standards Organisation (ISO), International Maritime Organisation and World Customs Organisation (WCO). The difficulty in establishing standards can be seen by a review of the recently released U.S. Department of Homeland Security draft white paper, outlining the National Cargo Security Strategy. With over $50 million spent on Operation Safe Commerce to date, the only clear commitment made to date states that the Department will, “…as a short-term step, mandate the use of high security mechanical seals on all in-bound containers.” At present there is an ISO standard for such seals, although no formal U.S. Government standard. In TQM terms, projects like GlobalSecure provide the ability to monitor the process, identify faults before the final destination and take preventative measures. Solutions like this are still only part of a layered approach, the jury is still out as to the cost/benefit advantages. Conclusion Every organisation operating throughout the supply chain must look at their customers and suppliers and identify how they can follow the initiatives identified. For different organisations, this means different things. Manufacturers must continue to look carefully at the guidelines laid down in C-TPAT and the institute programs that comply with these guidelines. Freight forwarders and organisations involved solely in logistics, besides the need for C-TPAT compliance, should also evaluate the use of seals and other anti-tamper devices to identify how great a role Telematics can play in providing additional security. For ports and vessels the ISPS code and Container Security Initiative offer ways to reduce the security threat. Each of the initiatives discussed play an important role in providing preventative measures to ensure security risks are at their lowest at all times. Compliance with each initiative is not enough, best practice must be followed together with continuous evaluation as part of a TQM process, this needs to be engrained into an organisation's culture so that employees involved in the supply chain, at all levels, understand that they are at the forefront of this new security orientated culture. Telematics, as well as other technologies will not provide the total solution. It can however help to provide a stable platform from which to build security in the logistics and supply chain. For further information, do not hesitate to contact Brian Rodricks, Global Market Manager Marine, Tyco Fire & Security. Brian can be contacted on e: brodricks@tycoint.com, t: 01256 336777. www.tycomarine.com |
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