@Risk

Piracy concerns continue to plague shippers, and industry analysts now estimate that maritime piracy and armed robbery at sea cost the global economy between $7 and $12 billion each year.

Over the past few months, I’ve noticed more headlines in the news, as government agencies, international naval forces, the UN and even private firms announce plans to enhance efforts to help ensure safe passage of merchant ships in the Arabian Sea and Indian Ocean.

For example, a few weeks ago, the United Arab Emirates Ministry of Foreign Affairs and DP World hosted a high-level conference called Global Challenge, Regional Responses: Forging a Common Approach to Maritime Piracy.  The final declaration from this conference acknowledges that piracy is expanding and represents a threat to all nations.

In addition, on April 11, the UN Security Council adopted yet another resolution addressing piracy off the coast of Somalia. The tenth such resolution since 2008, Resolution 1976 calls for a comprehensive strategy for anti-piracy law enforcement, including “consistent with applicable rules of international human rights law, measures aimed at facilitating the transfer of suspected pirates for trial, and convicted pirates for imprisonment, including through relevant transfer agreements or arrangements.” (more…)

Could the unrest in Egypt disrupt activity through the Suez Canal?

Last week, Gen. James Mattis, head of the US Central Command responsible for military operations in the region, called closure of the Suez Canal “inconceivable.” Still, if there did happen to be any disruptions, he said the US would respond “diplomatically, economically, militarily.”

Although supplies traveling through the port of Suez have not been disrupted, rising tensions are forcing several shipping companies to modify their operations. For example, some companies have ordered ships not to change crews in Egypt, and port employees must leave their posts early to comply with the government curfew that begins in the late afternoon, according to The New York Times.

Will your supply chain be disrupted? Are commodity prices likely to rise? (more…)

The Boeing World Air Cargo Forecast 2010/2011 predicts that world air cargo traffic will expand at a 5.9 percent annual rate over the next two decades, with worldwide air freight traffic expected to triple through 2029.

Released earlier this month, Boeing’s biennial report reveals that air cargo traffic rebounded strongly beginning in November 2009, and then continued on an upswing through the first eight months of 2010. As a result, Boeing predicts that world air cargo traffic will regain its 2007 peak by the end of this year.

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Air freight drives the global economy, and the threats originating from Yemen last month have focused world attention on air cargo security.

A few days ago, the International Air Transport Association (IATA) added its voice to the rising chorus, revealing plans to lead a global effort to modernize the 40 year old airport screening process.

According to Giovanni Bisignani, IATA’s Director General and CEO, there are several areas where more progress is needed to improve air cargo security programs. The list includes: (more…)

Supply chain security is now a top concern for companies throughout the pharmaceutical industry. Several recent high profile cases have underscored vulnerabilities, and most pharma organizations now recognize that a holistic approach is required to detect and prevent adulteration, counterfeiting, illegal diversion, and theft.

Last month, ISPE, a global not-for-profit association of 22,000 pharmaceutical science and manufacturing professionals, released a white paper to help firms address these critical supply chain issues. “Supply Chain Security: A Comprehensive and Practical Approach” encourages pharmaceutical companies to strengthen their overall supply chain security by adopting a layered approach that includes:

• Signal detection and response

• Supplier quality management

• Management of logistics and transportation services providers

• Additional specific programs

I found the discussion of signal detection and response particularly interesting, as it illustrates how adulteration of one particular excipient can have broad effects on the quality of finished products across several countries and can impact several organizations. Here’s an example from the report: (more…)