Sea containers pose major security risk

A leading independent think-tank has concluded that sea containers pose a considerable security threat both to the global economy and to the well being of society. This is despite the progressive implementation of the International Ship and Port Facility Security (ISPS) Code that is due to be in place, worldwide, by July 1 next year.

According to a report entitled Seacurity: Improving the Security of the Global Sea-Container Shipping System, published by Rand Europe, terrorists could use containers on ships to transport weapons and dangerous materials, or could use the containers themselves as weapons of mass destruction.

Furthermore, the report warns that if sea-container traffic is interrupted — either by acts of terrorism or attempts by governments to counter terrorism — the global economy will be seriously damaged. Approximately 90 per cent of all cargo is shipped in containers, amounting to some 250 million moves annually.

The report says: "The potential threat of terrorists using containers poses a large risk to our economies and to our societies. Since September 11, 2001, the awareness of terrorists' actions has clearly risen. This increase, however, has not been as substantial in all fields as it has been in the air transport sector. Ultimately, this means that the marine sector — and specifically the container transport sector — remains wide open to the terrorist threat."

The study identifies one clear challenge: a container changes hands several times on its way from its origin to its destination, causing multiple parties to be responsible and liable for the container's contents. Although forwarders, transporters and carriers do accept responsibility and liability for a container, they are dependent upon data provided in the bill of lading, which can be falsified or otherwise fraudulent.

Tracking the whereabouts of a sea-container is also very difficult, the report points out. The real origin of a container can be hidden from officials at the destination, helped by corrupt officials at intermediate ports who are willing to falsify documentation.

Policing ports is another issue, as ownership of the ports is often vague. Most ports are not owned and operated by national governments, which makes the imposition of legislation difficult.

Cost is another problem, due in part to the low margins within which the industry operates. The ports themselves are reluctant to undertake security measures, such as physically searching or X-raying containers, as this slows down the processing of arriving containers.

Furthermore, the report identifies a possible solution that customers should pay a security tax to ship goods, in the same way that millions of passengers pay airport taxes to meet the costs of increased anti-terror measures, but this would exacerbate the cost problem.

Maersk takes delivery of new post-panamax ship

Maersk has taken delivery of a large post-panamax container vessel built by the Odense Steel Shipyard in Denmark. The 352-metre vessel has been christened Arthur Maersk, and is among the largest and most modern container carriers in the world.

The vessel will enter Maersk's worldwide liner service and is the fourth newbuilding to be manufactured by Odense Steel Shipyard this year.

IRA announces rate hike from December 1

Member lines of the Informal Rate Agreement (IRA) which covers trade between the Far East and Middle East regions, is to impose a rate increase of $100 per TEU on ocean freight from December 1.

The increase will be applied on top of ongoing market rates and will be applicable for all shipments to the Middle East from Korea, China, Hong Kong, Taiwan, Vietnam, Thailand, the Philippines, Malaysia, Singapore and Indonesia.

IRA member lines include: APL, China Shipping Container Lines, CMA CGM and ANL, Cosco, Evergreen Marine Corp., Hyundai Merchant Marine, Islamic Republic of Iran Shipping Line, Maersk, MOL, NYK, Norasia Container Lines, OOCL, P&O Nedlloyd, Pacific International Lines, Tokyo Senpaku Kaisha, United Arab Shipping Co., Wallenius Wilhelmsen Lines, Wan Hai Lines Ltd and Yang Ming Transport Co.

– Frank Kennedy is a marine consultant based in Dubai