@Risk

Trucks are the most-used mode to move freight — especially for distances less than 500 miles –and even though there were declines in 2008 and 2009, new figures from the US Department of Transportation’s Federal Highway Administration (FHWA) indicate a return to growth in 2010.

The new data, released in the FHWA Freight Analysis Framework, shows that tonnage will continue increasing 1.6 percent per year, reaching 27.1 billion tons by 2040 –that’s a 61 percent increase in tons between 2010 and 2040.

In 2007, nearly 18.6 billion tons of goods worth about $16.5 trillion were moved on the transportation network, which equates to 51 million tons of goods valued at more than $45 billion a day moved throughout the country on all transportation modes. (more…)

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…)

Last Friday, cargo destination airports were put on high alert after investigators found two suspicious packages on cargo planes bound for the US. The packages were later found to have explosive devices.

Federal mandates now require the Transportation Security Administration (TSA) to screen 100 percent of packages aboard all passenger flights. But, there are no mandates currently in place for cargo aircraft.

Will this new terror threat change all that? Should you begin anticipating increased security measures, longer transit times and higher costs for air freight?

Steve Lord, GAO’s director of Homeland Security and Justice said he expects recent events to prompt a debate on Capitol Hill about the screening of cargo flights. “This is a potential area of concern, and this may refocus Congress’s attention on this in the next session of Congress,” he said. Back in June, Lord testified before the House Subcommittee on Transportation Security and Infrastructure regarding cargo screening on passenger aircraft.

I found it interesting that the New York Times has reported on its blog that shippers are defending the security measures that are already in place:

Maury Lane, a spokesman for FedEx, the carrier for the package that was found in Dubai, said that though the package had arrived via a contract shipping company from Yemen, it had never made it onto a FedEx plane in Dubai. It was, he said, ‘intercepted prior to being loaded on the aircraft, working with the F.B.I. and local authorities.’

An airline official, who did not want to be identified because the subject involved security procedures, said that major shipping companies have sophisticated screening procedures that — in theory — allow them to check packages and letters for explosives and radioactive material. Cargo companies, the official said, often know more about the packages they carry and their shippers than airlines do about their passengers.

Of course, this latest incident is raising questions about these current “sophisticated screening procedures.” Most notably, I would like to know: Are they sufficient? What caused the lapse? And, on a practical level, what will it cost to keep air cargo secure?

New proposed federal legislation, H.R. 6167, the “Shipping Act of 2010,” aims to significantly change the way that the international liner shipping industry is regulated in US foreign trades.

But, does it go too far?

The World Shipping Council (WSC) thinks so.

According to a 16-page report released by the WSC earlier this month, enacting the bill would be detrimental because the new legislation would: (more…)

Although we haven’t seen much national press about it recently, piracy remains a formidable threat in the Gulf of Aden and the Indian Ocean. Obviously, the risks are particularly acute for shippers that routinely traverse those waters, and now, the world’s three largest container shipping companies have decided to join forces in hopes of combating the problem.

CMA CGM, MSC and Maersk Line announced last week that they have formed a new partnership designed to: 1) foster information exchange on safety measures, piracy policies and procedures, and 2) coordinate efforts for addressing the issue with all relevant stakeholders.

In particular, CMA CGM, MSC and Maersk Line say they support: (more…)