WT100 Blog

Editor in Chief of World Trade 100

Hide and Seek

July 19, 2012

As the U.K. parliament grills the head of the security company hired to provide services to the London Olympic Games, we get a reminder of just how difficult and expensive security can be. The price of failures thus far has not been catastrophic, except to a career or two.

Meanwhile in the U.S., the deadline for 100 percent scanning of containers at foreign ports has passed and is raising concerns over heightened risk. The fact that the multi-layer approach to threat assessment has appeared to work well isn’t stopping those who are calling for scanning all U.S.-bound containers at foreign ports.

The numbers for compliance being thrown around are massive. One report says the U.S. receives goods from 700 foreign ports. Requiring scanners at all of those ports will add a tremendous cost which will be passed along to port users and, ultimately, to consumers. But beyond that, there are issues of sovereignty. Can the U.S. impose its security requirements on ports in a foreign country?

What if the foreign countries want a reciprocal arrangement – requiring all shipments leaving the U.S. to be scanned?

While we’re multiplying the 700 ports times the estimated number of scanners and tallying up the price, there are other costs that are much more difficult to calculate.

What is the cost of slowing or disrupting the flow of commerce?

How much trade is at risk if the price of doing business with the U.S. erodes margins to near zero?

Supply chain visibility can help and provide benefits at the same time. Information technology that extends a clear view of all of the players and all of the activities along the supply chain makes it harder to hide and easier to find the bad actors. It also helps identify process improvements and areas for cost reduction.

We can’t abandon our efforts to screen and scan and use other security measures, but our supply chains can achieve a double benefit of being more secure and more efficient if all of the supply chain partners participate in good information gathering and communication.
 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

KC SmartPort Momentum

Kansas City SmartPort Momentum 2013 focused on 3PLs, the issues facing the industry, and the role or logistics in economic development

Podcasts

GT Nexus podcast

Supply chain visibility is an appealing yet elusive capability for most companies. While most recognize the significant benefits that would accrue from comprehensive visibility, few have made it a reality across their global operations. Part of the problem companies seem to have in embracing and implementing visibility is the lack of a comprehensive definition or firm understanding of the transformational potential. In this podcast, World Trade and GT Nexus will discuss the definitions and opportunities as well as how new cloud technology platforms are driving significant value to major companies today.

Speaker: Greg Johnson, Chief Marketing Officer & Co-Founder of GT Nexus

More Podcasts

THE MAGAZINE

World Trade 100 Magazine

WT100 May 2013 cover

2013 May

Check out the May 2013 edition of World Trade WT100!
Table Of Contents Subscribe

Trade Zones

How do you use U.S. Foreign Trade Zones?
View Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Smoother Moves Calculator

Pacer Smoother Moves CalculatorPacer has designed a unique and easy-to-use tool to help you determine the potential dollar savings and carbon emission reductions generated by using Pacer intermodal services versus trucking.

STAY CONNECTED