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GAO cites challenges for 100 percent scanning of U.S.-bound cargo containers

By Jeff Berman, Group News Editor -- Logistics Management, 7/1/2008

WASHINGTON—A report released by the Government Accountability Office (GAO) in June on supply chain security found that there are various ongoing challenges concerning the inspection of U.S.-bound cargo containers from foreign ports.

Data and information for this report was based on mandates from H.R. 1, Implementing Recommendations of the 9/11 Commission Act, which requires 100 percent scanning of U.S.-bound containers by 2012. As part of this bill, the U.S. Customs and Border Protection group was charged with establishing the Secure Freight Initiative (SFI), a pilot program at seven foreign seaports.

The GAO's report cited nine major challenges to continuing the SFI pilot and the 100 percent cargo container scanning requirement: workforce planning; a lack of information about host government cargo examination practices; measuring performance outcomes; undefined resource responsibilities for the cost and labor for implementation; logistical feasibility for scanning equipment and processes; technology and infrastructure issues; use and ownership of scanning data; consistency with risk management; and reciprocity and trade concerns from foreign governments.

Supply chain security experts told Logistics Management that the concept of 100 percent cargo scanning remains flawed.

“One hundred percent scanning is far from being a reality…I do not believe it ever was or will be realistic,” said Albert Saphir, president of international trade consultants ABS Consulting in Marietta, Ga. “It looks good on paper, but once you add up the cost and the impact on the supply chain and then contrast it to the fact that we are still not 100 percent secure, it becomes clear that this may not be such a good idea.”

Saphir's comments were in line with those from Senator Susan M. Collins (R-Maine) who said in a statement that several challenges would have to be overcome before 100 percent cargo scanning becomes a reality.

“Until X-ray scanning technology is proven effective at detecting radiological material and not disruptive of trade, requiring the scanning of all U.S. bound cargo, regardless of its risk, at every foreign port is misguided and provides a false sense of security,” said Collins.

It is not just politicians and security experts that are leery of the viability of 100 percent cargo scanning efforts. The World Customs Organization, the World Shipping Council, the European Commission, and the American Chamber of Commerce to the European Union have all been vocal in their opposition of 100 percent scanning, saying that it is unlikely, unreasonable, and doesn't provide a level of security commensurate with their costs.

When asked about the viability of 100-percecnt scanning, King Rogers, executive vice president of SC-integrity, a provider of security technology and information services, put it this way: “Can all of these organizations consisting of trading partners, logistics experts, and security practitioners be wrong?”

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