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Increased Physical Inspection of Cargo Containers Will Increase Costs and Delays Without Boosting Security, APL Expert Says

Evanston, Illinois, 27 Oct 2004 – Physically inspecting 10 percent of America’s 9 million inbound cargo containers would be extremely expensive and would unacceptably delay the international supply chain without substantially increasing maritime security, a shipping-industry security expert said today.

Earl Agron, Vice President Security, at global container transportation company APL, estimated that inspecting roughly 900,000 containers a year would require 6,000 to 7,000 more customs officers than the approximately 19,000 employed today. Agron’s comments came in a talk before the Business Advisory Committee of the Transportation Center at Northwestern University.

Agron noted that shipping information for 100 percent of inbound cargo containers is now reviewed by US Customs and Border Protection before the boxes are permitted onboard ships bound for the US. Sophisticated software targets specific containers for additional action, including inspections at the port of entry or even refusing to allow a box onboard.

Currently, Agron said, around five to six percent of inbound containers receive non-intrusive, external inspections by sensing equipment. Of those, only a few are opened and searched by customs officers.

“Even a 10-percent physical exam rate, as suggested by some lawmakers, would be extremely expensive and would cause unacceptable delays to the international supply chain,” Agron said. “That’s why we support the current system, which provides security with less expense and delay.

“It’s not how many boxes you physically inspect that’s important,” Agron said. “What’s important is which boxes you inspect. That’s what the customs system is designed to do – identify the containers that should receive more attention. We think that makes more sense than simply saying we should inspect a certain number of containers.”

Agron also emphasized the importance of public- and private-sector collaboration in planning to re-start US ports in the event of a catastrophic terrorist act at a seaport. It’s generally assumed that all US ports would be shut down following such an event, just as all airports were closed following the 9/11 attacks.

“We need to understand the criteria for restarting the supply chain. Would cargo coming from foreign ports covered by the government’s Container Security Initiative (CSI) be allowed in first? Would carriers and shippers who are part of the Customs-Trade Partnership Against Terrorism (C-TPAT) be given priority? Who would be in charge – the Coast Guard, Customs and Border Protection, the FBI, or possibly state and local authorities?” Agron asked.

“It’s important that everyone involved understand the expectations – shippers, carriers, our trading partners and US authorities. Otherwise, we risk prolonging a shutdown and magnifying the economic ripple effects of a terrorist act.”

About APL
APL is a global container transportation company offering more than 60 weekly services and nearly 300 calls at more than 90 ports in Asia, Europe, the Middle East and North America. It combines world-class intermodal operations with leading-edge IT and e-commerce. APL is a unit of Singapore-based Neptune Orient Lines (NOL), a global logistics and transportation company. APL Web site: www.apl.com

Media Enquiries:
Americas:
Scott Dailey, tel: +1 650-369-4451 or scott_dailey@apl.com
Asia/Middle East:
David Glendining, tel: +65-6371-5311 or david_glendining@nol.com.sg
Europe:
Michael Haig, tel: +44-1737-248-300 or michael@isiscomms.com