2009 begins on a significant sour note and presents the logistics industry with unprecedented conditions that it must manage its way through. The depressed economic conditions will dramatically raise the need for heightened security in all segments of the global supply chain.
Tough economic conditions usually mean increased levels of cargo theft. Combine this with a dramatically changing U.S. and the guessing game that follows regarding the direction of global anti-terrorist initiatives, and we will likely find the private sector stepping in to take a greater role in protecting the supply chain.
The two most important issues we feel will impact the industry from a security perspective will be further adoption of the supply-chain protection principles fostered by the World Customs Organization and increased industry acceptance of electronic systems that monitor cargo condition and security.
With more than seven years of security initiative experience driven by the U.S. government, as well as the creation and approaching approval for high-security mechanical seals, the rest of the world appears ready to execute the WCO’s Authorized Economic Operator program, which is similar to the U.S. C-TPAT program.
Over the last several months, we have witnessed a dramatic rise in reported cargo theft and hijacking in the U.S. and abroad. Technology is now available that will provide the location, condition and security of shipments most anywhere in the world to combat this rising wave. Recent advances in technology have made such systems cost-effective in that they do not require costly investment in reader infrastructure or terminal access agreements. These new systems track the condition of the cargo, not the condition of the tractor, and are now more user-driven than proprietary provider-driven.
This year will prove out the term “sailing into uncharted waters.” With the world’s economies entering this truly uncharted period, we believe more shippers, operators and receivers will be moving to protect their assets by whichever method is accepted and available.