May 26, 2008
Source: Traffic World
By: Michael Fabey
Government memo to
freight forwarders bemoaning the extra costs they'll have to
eat to meet new mandates for screening air cargo: Get over it.
"It's not my job to keep all freight forwarders in business,"
said John P. Sammon, assistant administrator of the Transportation
Security Administration for the agency's Transportation Sector
Network Management. "My job is to make sure a passenger
plane doesn't get blown up. Our role is transportation security.
If the stuff goes on FedEx or UPS, so be it."
A civics lesson is the last thing air cargo forwarders are hoping
for as they look at new security costs. They say it could cost
up to $150,000 per facility to invest in new screening equipment
to make sure their consolidated cargo meets the requirement
to screen 50 percent of all cargo going on passenger planes
by next year and 100 percent by 2011.
"That is a big sum for most small- to medium-sized forwarders
competing on characteristically razor-thin industry margins,"
Brandon Fried, executive director of the Airforwarders Association,
wrote in a column on the security rules published in Air Cargo
World magazine, a sister publication of Traffic World.
"The government has a responsibility to provide safe, secure
transportation systems for the American traveling public,"
Fried wrote. "However, government leaders seem to have
lost sight of the costs and the government's role in securing
the homeland."
But Sammon says the cost is the ante for forwarders to participate
in shipping in the post-September 11 world. "The price
of poker just went up," he said.
Sammon notes TSA is under federal mandates to meet the new screening
measures but forwarders have a choice of whether to invest.
"They don't have to do it," he said. "The question
for them is, do you want to control your freight? And what is
it worth?"
It's not that simple, forwarders say.
"That this is a volunteer program should not detract from
the serious economic repercussions posed to those who are forced
to 'opt out,' Fried wrote. "Those companies are likely
… to face bottlenecks at the airport, causing significant
delays as airlines screen their shipments."
Sammon says by including forwarders and doing the screening
at their point in the supply chain, TSA is enhancing the forwarding
role and heading off the bottlenecks.
"If we just said to the airlines, 'you screen the cargo,'
then all of these guys would be hurt," he said. "Trying
to do it at the airport, it would be a nightmare."
The TSA lacks the funding and resources to screen cargo as it
does passengers and baggage, which are much less complicated,
Sammon said. With the congressional mandates, the agency sought
the most efficient screening process to keep the supply chain
moving, Sammon said.
He acknowledged there have been some hiccups, such as delays
with the interim known shipper program that some forwarders
say have held up cargo for up to a week. But the delays are
not as pronounced as some forwarders claim, said Sammon. "Generally,
we have turnaround in less than a day," he said.
Instead of complaining about the cost of the screening measures
- or worrying whether a new White House administration will
want something different - Sammon said forwarders should take
a more active approach. "Other people are out there doing
something," he said.
British Airways hopes as many forwarders as possible embrace
the certified programs, "Individual forwarders are looking
at this in different ways," said David Shepherd, BA''s
cargo vice president of the Americas. "The ability to pre-screen
and expedite is going to be a selling point."
"We're looking at the TSA requirements as a competitive
advantage," said Pilot Freight Services CEO Richard Phillips.
"We're putting extra effort to assure total compliance.
If you improve security, you improve other operations. It requires
you to be much more methodical in ways you move freight. We
keep our known shipper database up to date and secure. We can
get into a passenger plane or a freighter."
Pilot says its security certification from the Transported Asset
Protection Association is a help. "Some shippers are demanding
it," Phillips said.
Several technology companies started TAPA in the 1990s to set
standards for secure handling of high-tech goods in the supply
chain and the group has broadened its reach to other shippers
of high-value goods.
"What we want is very similar to TAPA, to what standards
you have to have in place," Sammon said. "Not everyone
can play in that market."



