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Los Angeles, California, 20 May, 2003 – The Customs-Trade Partnership Against
Terrorism (C-TPAT) must be effective or much more costly measures could result,
warned an APL Logistics executive yesterday.
“We must all work together to make sure C-TPAT succeeds,” said Chris Corrado,
vice-president of customer service for global supply chain management company
APL Logistics, at a seminar on freight security organized by the National Industrial
Transportation League (NITL) and World Trade magazine. “The alternatives would
be highly detrimental to the flow of international trade.”
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Chris
Corrado
Vice President, Customer Service
APL Logistics |
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Corrado
cited a current Congressional proposal that would have every U.S.-bound shipping
container inspected by U.S. Customs in foreign ports, and another that would require
U.S. Coast Guard inspections of inbound vessels 200 miles from U.S. shores.
“Such proposals are simply unworkable,” Corrado said. “The world economy, and
the U.S. economy, in particular, cannot sustain the delays in the supply chain
that would result.”
Instead, Corrado said, shippers, freight forwarders, overseas vendors, transportation
providers and government regulators need to continue cooperating to create a multi-layered
security web to ensnare potential terrorists who would seek to use containerized
shipping to deliver a weapon of mass destruction.
“The job of pushing back the borders goes far beyond ports of origin overseas,”
Corrado told the group of shipping and transportation managers from the nation’s
largest organization of shippers, including major retailers and manufacturers.
“Just as it’s important for us to know you, our shippers, it’s important for you
– the shipper – to build relationships with your own suppliers.”
It was vital, he said, “to ensure that your suppliers and intermediaries, such
as freight forwarders and carriers, have systems and processes in place to promote
trustworthiness and to document shipments fully and precisely. He cited “smart
container” equipment such as satellite-based positioning systems and weight sensors
as technology that could, for example, register when a container was taken off
its predetermined route or contained more weight than what was logged onto shipping
documents.
Corrado said U.S. Customs’ Container Security Initiative (CSI) was an example
of effective anti-terrorist cooperation among shippers, intermediaries and government.
The hallmark of CSI, the 24-hour advance manifest rule, “has greatly tightened
security and information-sharing among all parties involved in an international
shipment,” he said.
The 24-hour advance manifest rule requires carriers
to forward their shipping manifests to Customs at least 24 hours before a container
is loaded to a vessel. Customs then reviews the shipping information, and determines
whether the container can be loaded or must be held for inspection.
“Cargo holds,” as they are called, can potentially cause boxes to miss scheduled
vessels, resulting in additional cost and inconvenience for both shippers and
carriers. Typically, Corrado said, holds result from inaccurate or incomplete
information on the manifest, rather than the presence of something that catches
an inspector’s eye.
“A cargo hold can add up to real money, real fast,” Corrado said. “First, it’s
going to cost you money because it will slow down your supply chain. And, second,
if your inaccurate information causes an entire ship to be held for two days,
there is a huge potential cost in claims from all the other shippers who have
cargo on that vessel.”
Corrado said the key to the success of CSI and other security initiatives was
clear and precise sharing of information. “We all have to cooperate and communicate
– accurately, honestly, quickly, decisively,” Corrado said. “That is how all parties
in the process can best work together to enhance security while keeping supply
chains flowing optimally. And if we don’t do that, the requirements that will
be imposed upon us are too costly even to calculate.
“C-TPAT must succeed. And it’s up to all of us to make sure it does.”
About APL Logistics
APL Logistics
offers end-to-end supply chain management services enabled by leading information
technology. APLL is a wholly owned subsidiary of Singapore-based Neptune
Orient Lines (NOL), a global transportation and logistics company, and sister
company to global container transportation provider, APL.
Media inquiries:
APL/APLL
Americas:
Scott Dailey, tel: +1-510-272-8208 or scott_dailey@apl.com
Asia/Middle East:
Paul Barrett, tel: +65-6371-5541 or paul_barrett@apl.com
Europe:
Michael Haig, tel: +44-1737-248-300 or michael@isiscomms.com
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