ABSTRACT

Achieving a secure container supply chain poses significant policy challenges given the international nature of much of the business. For example, the US does not have jurisdiction over foreign firms, containers or vessels until they reach US waters. It also does not have the resources to guarantee the security of every container arriving at a US port. The response of the US government, like all others, to global terrorism must, therefore, be measured and coordinated. There is, however, a trade-off between security and efficiency. Programmes involving full inspection of containers are, given current technology, highly resource-intensive and the US General Accounting Office (2004) has taken Customs and Border Protection (CBP) to task for its failure to perform

a comprehensive assessment of the risk faced by maritime containers. Excessive emphasis on security can offset the economic benefits gained from trade liberalization, containerization, container tracking technology and management information systems.