by M. Sigmund Shapiro
October 29, 2001
There should be no doubt in anyone’s mind that the events of
September 11, 2001 will forever change transportation patterns, and
have a massive effect on cargo logistics. National or Homeland or
Internal Security will be the name of the game.
The new anti-terrorism law, just signed by the President will
allow the government wide authority to involve itself in personal
and business affairs.
We’ve already seen highly restrictive rules for air cargo,
especially when shipped on passenger flights. And we’ve seen
distorted interpretations by FAA personnel ruling that unknown
shippers cannot ship on air freighters operated by airlines that
also have passenger service. The whole known shipper / unknown
shipper regulations themselves result in anomalies. They require an
indirect air carrier (freight forwarder) to visit, say Dupont if the
forwarder had never handled a shipment for that firm. Surely Dupont
is not an unknown shipper. A national list of known shippers on the
AES site would be a more effective tool.
Changes in ocean carriage procedures can be even more disruptive.
The legislation before the Congress to eliminate or drastically
restrict in bond movement of cargo could cause a dislocation of port
practices, especially at inland ports. The bill would require
additional information to be filed at the first port of arrival, to
enable Customs to screen shipper, point of origin and merchandise
description data. Importers seem to agree that some data should be
required but, how much? And the delays that will arise on landbridge
movements will wreak havoc with inventories. Delivery schedules will
definitely be extended. Just In Time inventory control is going to
be much more difficult to achieve. Importers and exporters will
demand more from their broker/forwarder.
The logistics industry, especially the broker/ forwarder segment
will need to enhance its tracking capabilities to meet the changes
if it wants to maintain its position as the principal real time
information source for shippers and importers.
And the clients of these firms will necessarily have to pay the
bill for the massive upgrades needed. No longer will such services
be used as loss leaders to capture the client.
All in all, international trade is going to be a lot more
expensive.
