The first Annual SYNCHRO-NET meeting

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The SYNCHRO-NET project had its first annual project meeting in Barcelona in early June. I had a pleasure to take part in the three-day event and enjoy the welcoming atmosphere and sunny weather of the Catalonian capital.

For those who are not yet familiar with the project, SYNCHRO-NET is a three-and-half-year demonstration project on advanced logistics optimization. The project seeks to advance and promote new concepts of synchro-modality and slow steaming for more cost-efficient, less congested and greener intermodal supply chains. The project includes three demonstrations that test slow-steaming and synchro-modal solutions in real international logistics networks. The first demonstrator involves shipping of goods from the Far-East to the ports of Valencia, Algeciras and Barcelona, and subsequent movement by rail inland and final short truck movement. The second demonstrator focuses on regional logistics movements through the Port of Cork. The third demonstrator will address multimodal container movements in major European routes. The project is funded by the European Commission under the Horizon 2020 Programme.

During the two first days of the meeting, the Partner Forum discussed the SYNCHRO-NET work ahead: standardization, development of a tool for logistics optimization, real-world demonstrations, and exploitation and dissemination of the project’s results. The discussion produced some interesting findings and conclusions. The Partner Forum observed that, given the large number and variety of factors, the optimization of shipping and logistics in terms of cost (including CAPEX, crew cost, fuel), duration, environmental impact, reliability and various types of risks is nothing but an easy task. For example, weather, tide and state of the sea affect maritime logistics, its speed, reliability and cost-efficiency. There was also a great deal of discussion about the dimensions of risk in the meeting. The International Organization of Standardization (ISO) defines risk as the “effect of uncertainty on objectives.” In this light, the concept of risk in the SYNCHRO-NET context covers at least damage to cargo, lead time variability, variability of cost, and possibility of theft and piracy. The Forum concluded that cost-efficiency and quality of international logistics depend largely on real-time awareness and visibility over logistics operations: “the sooner you know, the lower the cost will be to solve the problem.”

The three days of SYNCHRO-NET meetings culminated in the International Logistics and Material Handling (SIL) conference, the primary annual industry fair and networking event for logistics professionals in Spain. In the conference, Mr. Santiago Blasco (DHL) introduced SYNCHRO-NET at the “Consumer & Goods” working session for a large audience. Later that day, a group of leading logistics experts from Spain and the rest of Europe debated on pressing topics at three SYNCHRO-NET roundtables. The roundtable sessions focused on the general theme “How to build win-win solutions synchro-modal logistics stakeholders.” Here are brief summaries of the roundtable sessions:

  • “Smart Steaming – how to build a win-win solution for all stakeholders.” The members of the roundtable raised concerns about organizational, technical and business challenges of future slow steaming. There are obvious draw-back in slow steaming such as longer lead times and lower capacity utilization. However, the panel concluded that smart rather than slow steaming is here to stay: “While maintaining high service level, we can make logistics more cost-efficient.”
  • ”Effective management of synchro-modal logistics.” The panelists of the second session argued that the concept of synchro-modality is not yet very established in the logistics sector. Even so, the panel agreed that synchro-modality builds on real-time optimization, risk analysis and advanced, ITC-enabled logistics planning. Synchro-modality requires visibility over the supply chain, so that logistics planers react to contingencies and can make effective decisions in real time. The panel concluded that collaboration across supply chain operators – especially among shippers, carriers, freight forwarders – is the key to synchronized international logistics.
  • “Synchro-modal IT tools: innovation and value added to the logistics industry.” The third panel focused on the rather technical topic of leveraging cloud-based IT architecture for advanced logistics planning. The panelists saw a great potential in modern ICT solutions to enable synchro-modality, smart steaming and other ways for optimizing international freight transport. There still remain challenges for bridging a broad array of different computer systems for higher degree of logistics interconnectedness and interoperability.

The SYNCHRO-NET project has had a strong start, and the project progresses on the right track and at the full speed after one year of work. There is still much hard work to do over the next six months, for CBRA and other partners. In autumn, CBRA researchers will be focusing on reviewing policies, legislations, and standards that have an effect on synchro-modality and slow steaming. The CBRA team will also continue promoting the SYNCHRO-NET project and its findings at various events and publications. Stay with SYNCHRO-NET and visit the project website www.synchro-net.org.

CBRA Blog by Dr. Toni Männistö

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Figure 1 Santiago Bosco presenting SYNCHRO-NET at the the International Logistics and Material Handling (SIL) conference

New survey on European postal security

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PostEurop and Cross-border Research Association have launched a new online survey on postal security management to promote further development and implementation of best security practices in the postal sector. The survey is part of the ongoing SAFEPOST project that the European Commission is co-funding under the Seventh Framework Programme (FP7). SAFEPOST project going to finish in the end of July after four years of work towards higher postal security in the European Union.

The survey studies the current state of postal security management among PostEurop members, 52 postal operators in 49 European countries. The goal is to collect responses mainly from security and safety managers of the PostEurop members, but also postal expert familiar with sorting and distribution processes are welcome to provide their inputs. The first part of the survey focuses on security implementation and security performance, and the second part studies postal managers’ expectations and concerns regarding the following six main SAFEPOST innovations:

Common Postal Security Space:

SAFEPOST has created an online platform for sharing security-related information between postal operators. This Common Postal Security Space provides a digital track record of security controls and related evidence (for example X-ray images) that a postal parcel has encountered over its journey, and facilitates an easy and controlled way to exchange information both with other operators as well as the authorities.

D-tube drug screening station:

SAFEPOST has demonstrated a new screening solution, D-tube, that can be fully integrated into the sorting process. The D-Tube’s prototype detects illegal substances, such as narcotics and explosives, at high accuracy.

Explosive detection system:

SAFEPOST has demonstrated a Raman spectroscopy screening device for detecting trace amounts of explosives and explosive precursors on the outside of postal items. The device is designed to be seamlessly integrated, at the same level as X-ray machines already used today, in the sorting process and detect the explosive threats at a high accuracy and at a low false alarm rate (≈ 1 %).

Image recognition system:

SAFEPOST has developed an Image Recognition solution that photographs five visible sides of a postal parcel at one or more locations in the postal network. The solution compares these images to detect signs of tampering or damage (≈ 92% detection rate). The current solution functions properly when the conveyor belt moves no faster than 0.5 m/s.

Radiological screening:

SAFEPOST has demonstrated detection of radiation in moving parcels, that can be fully integrated into the sorting process. The current version of the detector is able to detect any harmful level of radiation, and identify the radioactive isotope, and when possible to consider effects of possible attempts of hiding the radioactivity with lead or other shielding material by detecting neutron radiation.

Security standard and certificate:

SAFEPOST project is working towards a new European security standard for the postal operators that would give recommendations about use of security inspection technologies, exchange of security-related information, cyber security, and key security performance indicators. This standard would pave the road towards a voluntary security certification program that would help the postal operators to show their commitment to security.

This survey research is expected to produce interesting new insights about postal security activities and security performance among the PostEurop members. If the response rate is high, the survey findings will set a basis for pan-European benchmarking of security activities. The findings would also contribute to smart policy making, legislation, and standardisation in the field of postal security.

Finally, depending on the response rate, CBRA is going to publish an academic journal paper based on the results. Building on solid theory on supply chain security risk management, the journal paper would provide new empirical about how supply chain security implementation is associated operational and security performance. We expect that collaborative security measures improve both on-time delivery performance (a proxy for operational performance) and supply chain security performance simultaneously. Collaborative security measures include survey items such as “we coordinate security activities with our business customers” and “we exchange customs declaration information with customs authorities electronically [for example, ITMATT or CUSITM messages]”. Another hypothesis is that, on the one hand, non-collaborative security contributes to supply chain security performance but decrease on-time delivery performance on the other hand. Examples of such non-collaborative measures include “we use tamper-evident mail bags to transport high-value postal items” and “We perform security controls also on non-airmail items to detect explosives.” The figure below summarises the theory and hypotheses of the research paper.

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Figure 1 Theoretical framework of the SAFEPOST survey paper

The survey findings will be presented in the final SAFEPOST meeting in Madrid 5-6 July 2016. After the meeting, we hope that we can expand the scope of the survey to cover the rest of the world, as well. The next step would be to contact representatives of the Universal Postal Union (UPU) and coordinate distribution of the survey into the organisations’ 192 member countries.

 

Mr. Chris Thibedeau and the Barbados ESW

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CBRA Interview with Mr. Chris Thibedeau, on the Barbados Single Window

Hi Chris, and thanks for agreeing to join CBRA Interview. Can you first tell a bit about yourself, your background, where you work and so forth?

Sure thing.  For those that don’t know me, I’m an ex Customs official and a mediocre hockey player from Canada.  I worked at Canada Customs for about 17 years.  In 2006, I joined a firm called GreenLine Systems as a Vice President and went to work on contract as a resident subject matter expert for US Customs and Border Protection in their Office of Anti-Terrorism. In Canada I was awarded a Government of Canada Technology Award gold medal and the Canadian Public Service Award of Excellence for leading the design and development teams responsible for the TITAN automated risk assessment system.

I am a co-author – along with you, Juha, and other colleagues – of the World Customs Organization’s Customs Risk Management Study, the Inter-American Development Bank’s Knowledge and Capacity Product on Risk Management of Cargo and Passengers, and the WCO’s “Global Container Security and Identification of High Risk Indicators” that served as a core input to the General High Risk Indicator document.

GreenLine was acquired by A-TS in 2013 and then PAE in 2015. Over the last 10 years, I’ve been responsible for leading the development and providing guidance to internal and external clients and stakeholders for solutions that provide a customized risk management solution to support screening and facilitation of cargo, passengers, and conveyances. I also just completed my Master’s degree in International Customs Administration from the Charles Sturt University in Australia.

It’s great to be here Juha and nice to see you again!

Thanks Chris for the comprehensive background notes, and great to see you too again, since quite some while! In 2015, the Barbados Government initiated an Electronic Single Window project sponsored and funded by the InterAmerican Development Bank. Can you provide an overview of this project?

The Barbados Government recently initiated a major project to modernize Barbados with an Electronic Single Window, or, ESW.  Sponsored and funded by the InterAmerican Development Bank, the ESW initiative intends to optimize the management of trade facilitation and border security through the use of new border management technologies to be developed by my firm, A-T Solutions and its partner, a Canadian-based commodity classification specialist, 3CE Technologies. The ESW intends to provide a Single interface for the exchange of trade-related documents between the trading community, customs, and other government agencies with a stake hold in border processing.  The ESW will also provide a public one stop user-friendly repository for comprehensive tariff and regulatory trade information, government advisories, and training materials.

Ultimately, the ESW project intends to reduce business costs involved in the movement of goods for export and import, international trade, particularly to maximize the efficiency of Customs and trading processes and improve integration with related agencies that involve legal and business partners in the trading community.

Our ESW seeks to establish an integrated solution for commercial trade processing that addresses both the needs of the Barbados Customs mandate and those of 30 other government agencies, OGAs.  It is believed that this initiative will expand the number of OGA programs that interact with Customs commercial processing and deliver a more advanced electronic approach to the collection, consolidation and dissemination of commercial trade data for both the trade community and regulating programs.

Which other government agencies, OGAs – next to Customs – will benefit from the ESW?

At this stage we are working directly with 30 OGAs, including, but not limited to, the following ones: Ministry of Agriculture – Animal Health, Food Safety, Plant Health; Barbados Defense Force; Barbados Drug Service; Barbados Licensing Authority; Barbados Investment and Development Corporation; Barbados Police Service; Barbados Port Incorporated; Barbados Postal Service; Barbados Revenue Authority; Department of Commerce And Consumer Affairs; Department of Corporate Affairs and Intellectual Property Office; Ministry of Finance; Data Processing Department; Department of Economic Affairs – Research and Planning Unit; Immigration Department; Ministry of Health; Port Authority; and, Statistical Service.

We ‘ve learned that some OGA mandates add an additional layer of operational complexity for risk based border management methodologies.  In one example, the Ministry of Health in Barbados, MoH, requires a 100% visual or physical inspection for all their regulated commodities. The MoH does not have access to the ASYCUDA – the system developed by the United Nations Conference on Trade and Development, or, UNCTAD, used to record declarations – and therefore the Ministry doesn’t have visibility for what will be arriving until they receive a notification from the consignee or importer, usually done by fax. They also lack access to a historical repository of enforcement data in order to analyze and develop recurring profiles that could be used as a risk management resource. In this sense, the ESW project can help the MoH by giving them access to earlier and updated information of the cargo data when initially reported to begin the decision making process under their protection mandate. interview 07.04.2016

In many cases, our ESW is providing visibility into border processing that the OGAs never had in the past.  The ESW does not intend to replicate information that is already collected by the ASYCUDA. However, ESW can monitor controlled goods that enter and leave the country for permit and control purposes.

The ESW can also give an OGA a regular count of “License, Permit, Certificate, Other document”, LPCOs, by commodity or goods within identified periods of time.  We essentially are providing the core OGA/LPCO management capability where ASYCUDA does not – in other words, we are closing this gap.  However, this is not a knock at ASYCUDA.  ASYCUDA is a great system for declaration processing and accounting, but it was never designed to do all things.  ESW functions are really not part of its true capability.  This project is a great example of how ASYCUDA can work hand in hand with a parallel and complimentary system. Here’s an analogy to consider:  I see ASYCUDA as an iPhone.  We are a vendor building apps for that iPhone where the app adds large value for developing and modernizing nations.  I believe this is a framework for modernization that should be fostered internationally and replicated.  I would like to see UNCTAD agree and endorse this type of approach and methodology.  It’s time for all of us to collaborate and offer larger value.

Interesting! What do you consider as the most important lessons learned from the Barbados ESW-case, so far?

Well, there are a few I might highlight that I personally think are important:

First, in principle, information visibility for Customs and OGAs is important in order to efficiently apply risk management techniques, reduce release times, and improve physical inspections. OGAs should have access to the declarations made through ASYCUDA in order to find specific threats and create Risk Assessment modules according to the protection mandate of an institution.

Second, there should be greater coherence between different IT systems. ASYCUDA, the ESW and other IT systems of Barbados should work together without any task redundancy.  This is where the time savings are found associated with the release of goods. I can’t underestimate how important change management and business transformation is on a project of this nature.  I still struggle with this in my own company trying to convince others how important this is.  We’ve made sure to include Change Management and Business Transformation Architects on our delivery team in this instance and it has paid off in dividends.  Our Barbadian clients praise this approach.

Third, I’d certainly recommend that OGAs use a common risk assessment decision support system.  This will guide OGAs through a data exploitation framework using risk-based principles tailored to their mandate and mission.  In Barbados, Customs actually has access to an Automated Risk Management System.  I seriously think they should consider sharing access with the OGAs.  By distributing access to the other OGAs, each agency would have full visibility into all declaration filings, and an ability to scan this information and seek out inspections that could be in violation of their controls or mandate.  If this access can be provided, I see this as the greatest single step forward to having OGAs endorse and adopt risk based decisions at the border.  This would help lead to interoperability with Customs.  Until that happens, we will continue to see conflicting mandates where one agency endorses risk management and the other endorses risk aversion.  That’s a real problem.

And fourth, I’d also recommend that when two or more inspections must be done, the inspections should be executed at the same time and location with both Customs and OGAs present. This will reduce redundancy and unnecessary cost for the trade community.

Thanks Chris for sharing these insights! Any final comment or greetings you would like to send to CBRA Interview readers?

Yes, one important thing to take away.  There have been many time release studies that have taken place over the years in this region and in Barbados.  Current release times sit at approximately eight days for import and export.  Now think about that: eight days to import your goods into the country!  I believe this timeline is unacceptable in any modern nation or a country that seeks to endorse trade facilitation. Our ESW solution will ideally eliminate many of the redundant tasks that exist today and improve on the time release of import and export shipments significantly and extensively.

Here is an example: Today, an importer or their broker has to file an electronic declaration in ASYCUDA.  If the goods are controlled, commonly done for example with meat products, then the importer or the broker has to travel across Bridgetown to the Department of Agriculture and Veterinary Services to apply and pay for a paper permit.  Once approved and obtained, they then have to travel back to Customs, and submit the paper permit along with a paper copy of their declaration as a release package.  Once duties and taxes are paid, the customs officer stamps up the release and re-releases the shipment in ASYCUDA.  A paper delivery authority is provided.  The importer makes arrangements to pull their container or shipment out of the terminal or sufferance warehouse and provides the delivery authority to the terminal operator or warehouse keeper.  Only then can the goods enter the economy.
interview 07.04.2016

If you can appreciate how long that might take – that is currently eight days on average – think about what happens when you have other controlled goods in your shipment, requiring additional visits to OGAS, and possible offload inspections at the port or inland.  It’s no wonder the release time sits at around eight days!  I have a strong belief this is where all the time savings are.  We are automating much of this process in the ESW and will reduce the redundancy of tasks and visits to Customs and OGAs.

The solution to an ESW is in the workflow and approval process.  It’s not about scanning paper permits to attach to a declaration.  The solution is about interoperability.  I’m excited about this.  Just think about reducing a release time from eight days to a number of hours.  That will be quite the story to tell!

Great! Let’s be soon in touch about writing a joint journal paper on this highly topical project. Thanks Chris for the interview, Juha.

We should!  It’s an important topic for the community of WCO and WTO members, donor agencies etc.  Talk soon.

 

C-TPAT Program Benefits Reference Guide, 2014 (CORE1032)

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Summary: This guidebook outlines the key elements and benefits of the Customs-Trade Partnership Against Terrorism (C-TPAT) program that is designed to secure global supply chains and to improve United States border security. Document is available at: https://www.cbp.gov/sites/default/files/documents/C-TPAT%20Program%20Benefits%20Guide.pdf (link tested on 3 March 2016)

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Full review: C-TPAT partners receive a wide range of benefits listed below:

  • C-TPAT Partners are examined at a considerably lower rate than non-C-TPAT Partners.
  • C-TPAT certified/validated highway carrier Partners are granted expedited border crossing privileges. C-TPAT Partners at many Canada/Mexico land border ports of entry have access to Free and Secure Trade (FAST) Lanes.
  • Some categories of C-TPAT importer Partners are exempt from stratified exams.
  • C-TPAT shipments subject to examination are moved ahead of any non-C-TPAT shipments, to the extent possible.
  • In the event of a significant disruption/delay in cargo processing operations, actions are taken to maintain communication and coordination with C-TPAT Partners for business resumption.
  • C-TPAT Partners’ trade compliance issues are given priority over those issues related to non-C-TPAT Partners.
  • Each C-TPAT Partner is assigned a Supply Chain Security Specialist (SCSS) who coordinates between the C-TPAT Partner and the US Customs and Border Protection agency (CBP). The Specialist also assists the Partner with supply chain security issues.
  • Partners have access to the C-TPAT’s automated Portal system, to communicate with CBP and exchange program related information in a secure manner.
  • C-TPAT Partners are eligible to attend C-TPAT events like the annual Conference and other training seminars organized by the program.
  • C-TPAT importer Partners are eligible to participate in the Importer Self-Assessment (ISA) Program.
  • The Penalty Mitigation benefit is granted to sea carriers for late submission of data required under the Importer Security Filing requirements.
  • C-TPAT members are eligible to participate in other U.S. Government pilot programs, such as the Food and Drug Administration’s Secure Supply Chain program.

In addition, some benefits are associated with Mutual Recognition Arrangements (MRAs) when two customs authorities formally acknowledge the security requirements or standards of one program, as being equivalent to the other program. Some of the resulting benefits to the trade community are illustrated below:

  • C-TPAT importer Partners that also conduct export operations and Partners of the foreign Customs Administration programs (manufacturers and exporters of record) are granted a reduction in their overall cargo risk score, implying fewer examinations at export and import ports.
  • A C-TPAT validation for an overseas partner is not required if an MRA is in place because CBP recognizes the status of the Partner in the foreign partnership program.
  • Companies covered by MRAs need only to comply with a common set of security requirements, avoiding the hassle of following multiple sets of requirements from one partnership program to another.
  • MRAs lead to more transparency in international commerce. Mutual exchange of information between these partners facilitates trade across Mutual Recognition Partner nations.

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C-TPAT Best Practices Catalog Addendum, 2009 (CORE1031)

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Summary: This addendum document lists cargo security best practices with focus on prevention of weapons of mass effect, terrorists, and/or contraband from infiltrating into the international supply chain. Each best practice is linked to a specific business entity, such as a Manufacturing Company, a Highway Carrier, an Importer or a Foreign Consolidator but these may apply to other business types as well. The document is available at: https://www.cbp.gov/sites/default/files/documents/ctpat_bpa_2009_0.pdf (link tested on 3 March 2016)

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Full review: The best practices are outlined as follows:

Risk assessment: Programs are in place to enable the identification of the most vulnerable supply chain areas, to grade suppliers supply chain security criteria. Specific processes have been developed to manage the supplier’s products, software and services and internal monitoring systems to enhance the safety and security procedures.

Business partner requirements: Several security measures have been taken by entities. These include conducting supply chain security audits to ensure compliance of non-C-TPAT business partners; carrying out security audits of a foreign manufacturer; making security self-assessments, conducting onsite inspections to ensure freight security; shipping cargo only through accredited ports and steamship lines; monitoring compliance of manufacturing facilities; screening procurements to identify ineligible status of suppliers, and performing audits of business partners.

Conveyance/Container/Trailer Security: Examples of such security practices are: integrating special security features in the GPS (global positioning system); using laser beams to protect trailers; using colour codes for matching consignments; installing infrared sensors in docks to prevent unauthorized access; using special codes to identify correct shipments; documenting all seal changes for shipments in transit; ensuring delivery by authorized Company drivers; sealing containers; operating through C-TPAT carriers; using only “seaworthy” containers; installing in-transit temperature data sensors to ensure product quality; enclosing container storage area; conducting non-intrusive inspection prior to loading a vessel; establishing specific inspection points; using multiple security devices on each container; using automated container yards; instructing foreign suppliers to provide inspection checklists; using dock locking arms for container storage; installing motion sensors in a trailer; operating through contracted highway carriers and security services; documenting a seal destruction policy, and so forth.

Physical Access Controls: Some practices by Importers include establishing multiple security stations within the building; using metal detectors for employees; installing an electronic swipe card/ lock box systems for access control for sensitive documents; conducting electronic scanning of visitors’ drivers licenses; utilizing a third-party software system to manage key inventory; and providing panic buttons for company employees.

Physical Security: Several innovative solutions have been designed to ensure physical security, such as electronically closing gates and activating tire puncturing devices to prevent vehicle exits; using an electronic security information reporting system, installing invisible electronic fences; installing laser sensors; setting up optical light beams to detect intruders; fitting double locks on doors; Installing infrared sensors on fences; using body alarm functions for emergencies; appointing patrolling guards, using multiple glass meeting rooms; using multiple interior infrared security alarm beams to detect unauthorized access; and installing security guard view towers.

Personnel Security: An Importer requires business partners to provide a monthly master list of employees and immediately notify when their employees are hired or terminated, in order to ensure that only authorized business partner’s employees enter the manufacturing facilities.

Security Training/Threat Awareness/Outreach: Business entities have invested in a wide range of training programs. One such initiative is the four-tier C-TPAT training targeted for management and supervisors, shipping and receiving personnel, internal personnel dealing with contractors and hourly staff. Other businesses use different approaches, like establishing an online training portal;; offering general security training and of site-specific training for security guards; issuing security advisories; making regular security awareness assessments; establishing a situation matrix chart to address possible incidents; establishing a direct communication channel between the president of the company and employees; putting in place a toll free hotline for company personnel; conducting security drills and exercises; establishing a web-based security awareness training; documenting security incidents in a central database; and establishing a global communication system to contact all employees and contractors remotely.

Procedural Security: Instances of this type of security measures include a bio-thermal intrusion alarm system; a global SAP network to generate all written orders for import and export; automatic screening procedures of purchase orders for restricted parties; lock boxes for sensitive documentation; an automated loading module called the Automatic Truck Loading System (ATLS); a container seal number as the shipment tracking (invoice/bill of lading) number, and so forth.

Information Technology (IT) Security: Such security practices include a biometric fingerprint door lock; a remote data backup center; a retina scanning system for access to the computer system; requiring supervisory approval to copy data; use of electronic password protected purchase orders; establishing a daily “e-test” for employees to access computers, and so forth.

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CEN Supply Chain Security — Good Practice Guide for Small and Medium Sized Operators, 2012 (CORE1030)

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Summary: This is a guidance document for small and medium sized enterprises, SMEs. on how to apply a supply chain security approach to their operations in order to mitigate the risk of criminal activities. It gives an overview of the main crime types occurring in the supply chain along with some countermeasures, as well as the supply chain security initiatives, and the compliance requirements thereof. The document is available for purchase e.g. at:   http://shop.bsigroup.com/ProductDetail/?pid=000000000030258778  (link tested on 3 March 2016)

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Full review: The recommended supply chain strategy rests on a six-step approach. The first step is to define a context for the supply chain, crime prevention and security management activities taking into consideration the security sensitiveness, the geography and transport modes, and the main stakeholders involved in the supply chain operation. The second step is to make a threat and vulnerability analysis with regard to terrorist and other criminal threats in the supply chain. The main criteria included are the gaps existing in enhanced security, the high-risk crime types, and the potential consequences of crime occurrences. The third step covers the regulatory framework, the major aspects being the regulations and programs required for successful business operations, expectations of customers and suppliers, requirements laid down by insurance providers, and relevant government authorities. The fourth step refers to an overall security plan, taking into account the physical security, data security, human resources security (including selection, training, and exit procedures), business partner security (including selection, and auditing), and process control and monitoring of deviations. The fifth step involves implementing into practice concrete security measures, investment in technologies, procurement of services, in-house solutions and so forth. The final step is to monitor and measure the security performance and take appropriate corrective actions.

Five supply chain crime types have been elucidated in this guide. These include:  Property theft (cargo theft, intellectual property breaches); targeted damage (terrorism, sabotage); cross-border duty and tax fraud; illegitimate transporting, exporting and/or importing (smuggling of prohibited and restricted goods, people smuggling); and crime facilitation (document forgery, bogus companies, cybercrime). For each crime type, the main focus should be on the issue (main features and typical sectors/products involved), scope of the problem and actions to mitigate risks.

This guidebook has chosen eight security initiatives for illustration purposes. It explains the context of each initiative, whom it is meant for, and some basic requirements and the implications. These are as follows:

  • Import Control System (ICS) in the EU (a systems tool meant for the lodging and processing of Entry Summary Declarations, and for the exchange of messages across national customs agencies, economic operators and the European Commission).
  • Export Control System (ECS) in the EU (introduces EU procedures to computerize and control indirect exports and to implement the EU safety and security regulations);
  • Maritime Security Legislation, International Ship and Port Facility Security (ISPS) Code in the EU (International regulations to ensure the security of maritime transportation are being issued by the International Maritime Organization, IMO, in the International Ship and Port Facility Security Code);
  • Aviation Security Legislation, Air Cargo Supply Chains in the EU (three categories of aviation security legislation exist in the EU- Framework regulation, supplementing regulations, and implementing regulations-all targeted towards civil aviation security).
  • European Union Authorized Economic Operator, EU AEO (operators involved in international trade of goods certified as complying with WCO or equivalent supply chain security standards);
  • Regulated agent, Known consignor and Account consignor in the EU (Specific “trusted trader” status existing in the European air cargo supply chains);
  • ISO 28000 Series of Standards on Supply Chain Security Management Systems (address potential security issues at all stages of the supply process, e.g. terrorism, fraud and piracy);
  • Transported Asset Protection Association (TAPA) in Europe (fighting cargo crime using real-time intelligence and the latest preventative measures).

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Supply Chain Security: DHS Should Test and Evaluate Container Security Technologies Consistent with All Identified Operational Scenarios to Ensure the Technologies Will Function as Intended, GAO, 2010 (CORE1068)

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Summary: This report reviews container security technologies that the Science and Technology (S&T) Directorate of the US Department of Homeland Security (DHS) has evaluated and tested between 2004 and 2009. These container security technologies aim to (1) detect and report unauthorized intrusions into the shipping containers and (2) to track the movement of the containers through the supply chain. As of 2009, DHS has funded and tested four different container security technologies. So far, none of the candidate technologies meet all desired functional requirements: main problems are high false alarm rates, low detection probability, and difficult installation and calibration. Besides the unsatisfactory test results, the report points out problems of conducting the phase II practical “trade lane” testing in the context of the maritime transport only. The report recommends to test the technologies “across all operational scenarios,” considering contextual differences across different modes of transport. Once the technologies would pass this extended trade lane testing, the DHS should (1) obtain support from the trade industry and international partners, (2) develop a concept of operations (CONOPS) for using the technology, and (3) certify the container security technologies for use. The source document is available at: http://www.gao.gov/products/GAO-10-887.

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Full review: This GAO document describes in detail the four container security technologies that DHS has tested since 2004, and one of these technologies happens to be the very same “composite security container” that the WP22 CORE demonstration studies. The report discusses in details the problems that the previous tests and pilots of container security technologies have encountered. Being aware of the past problems help the CORE demonstrations to avoid past mistakes. In addition to the WP22 demonstration, the other demonstrations that involve tracking & tracing of intermodal containers benefit from the information of this GAO report. For instance, the GM demonstration on maritime shipping of automobile parts from the EU to the US via the port of Bremerhaven (WP9) might use this GAO document to evaluate available technical solutions for tracking the shipping containers. The demonstrations in work packages 14-17 involve tracking and tracing and therefore may use the detailed analysis this GAO report offers on available container security technologies.

 Cross-references:

  • Homeland Security: Key Cargo Security Programs Can Be Improved. GAO-05-466T. Washington, D.C.: May 26, 2005.
  • Cargo Container Inspections: Preliminary Observations on the Status of Efforts to Improve the Automated Targeting System. GAO-06-591T. Washington, D.C.: March 30, 2006.
  • Supply Chain Security: Feasibility and Cost-Benefit Analysis Would Assist DHS and Congress in Assessing and Implementing the Requirement to Scan 100 Percent of U.S.-Bound Containers. GAO-10-12. Washington, D.C.: October 30, 2009.
  • Maritime Security: DHS Progress and Challenges in Key Areas of Port Security. GAO-10-940T. Washington, D.C.: July 21, 2010.

Full citation:

U.S. Government Accountability Office (GAO), 2008. Supply Chain Security: DHS Should Test and Evaluate Container Security Technologies Consistent with All Identified Operational Scenarios to Ensure the Technologies Will Function as Intended.

CORE1068

Additional keywords: Container security, maritime logistics, container security device, tracking & tracing
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Review on“Contributing to shipping container security: can passive sensors bring a solution?” G. Janssens-Maenhout a, F. De Roob, W. Janssens, Journal of Environmental Radioactivity, 2009 (CORE1096)

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Summary: Illicit trafficking of fissionable material in container cargoes is recognized as a potential weakness in Nuclear Security. Triggered by the attacks of 11 September 2001, measures were undertaken to enhance maritime security in extension to the Safety Of Life At Sea (SOLAS) Convention and in line with the US Container Security Initiatives. Effective detection techniques are needed that allow the inspector to intercept illicit trafficking of nuclear weapons components or components of other nuclear explosive devices. Report abstract is available at (one can ask for the full report e.g. vie ResearchGate): https://www.researchgate.net/publication/38053693_Contributing_to_shipping_container_security_can_passive_sensors_bring_a_solution

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Full review: Many security measures focus on active interrogation of the container content by X-ray scan, which might be extended with the newly developed tagged neutron inspection system. Both active interrogation techniques can, with the current huge volume of container traffic, only be applied to a limited number of selected containers. The question arises whether a passive detection technique can offer an alternative solution.

This study investigates if containers equipped with a small passive detector will register during transport the neutron irradiation by fissionable material such as plutonium in a measurable way. In practice, 4/5 of the containers are about 1/8 filled with hydrogenous material and undergo a typical 2 months route. For this reference case, it was found that the most compatible passive detector would be an activation foil of iridium. Monte-Carlo simulations showed that for the reference case the activity of a 250 μm thin foil with 6 cm2 cross-section would register 1.2 Bq when it is irradiated by a significant quantity of Reactor-Grade PuO2. However this activity drops with almost two orders of magnitude for other fillings and other isotopic compositions and forms of the Pu-source. The procedure of selecting the target material for Pu detection is detailed with the theoretical methods, in order to be useful for other applications. Moreover the value of such additional passive sensors for securing maritime container transport is situated within the global framework of the First, Second and Third Line of Defense against illicit trafficking.

Full citation:   G. Janssens-Maenhout a, F. De Roob, W. Janssens (2009). Contributing to shipping container security: can passive sensors bring a solution?” Journal of Environmental Radioactivity 101(2):95-105 · OCTOBER 2009.

Keywords: Nuclear illicit trafficking, Maritime container transport, Passive detection technique

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