World Trade - August 2008 - (Page 35)

Although Fried believes higher fuel prices are here to stay, other changes he believes are more short-lived. “I heard Fred Smith of FedEx say recently that he’s seeing not only a reduction in revenues, but also a downgrade in service levels. He said FedEx’s business model was changing, and that the focus was less on express shipping and more on trucking.” “I’ve been in the industry 27 years, and I’ve seen situations like this before where people say, ‘We’ve lost the next-day model, it’s not going to work anymore,’ because demand isn’t there. Then, all of a sudden there’s an upsurge in business and you can’t get space on planes anymore.” “There’s no denying that the just-in-time strategy is a centerpiece of global supply chains today,” he asserts. “When we come out of this, the express delivery services will deﬁnitely come back into play.” In the meantime, another change that will undeniably have more permanency is the federal mandate for 100 percent screening of air cargo. The 9/11 Commission Act of 2007 man“Some say there’s equipment on “The TSA’s air dates 50 percent screening at the the market today that can screen piece level by February 2009 and pallets efﬁciently, but when I talk to cargo rules require 100 percent by August 2010. the TSA, they say we’re probably “Many people don’t fully under3 to 5 years out from having that screening at the stand what ‘piece level’ means,” caucapability,” says Fried. ‘piece level,’ which tions Fried. “Pallets and ULVs are Nonetheless, there are some going to have to be disassembled promising developments, which in addition to a and the pieces laid out on the ﬂoor, appear likely to make it to the maror wherever, as each box will need ketplace in a shorter time frame. compliance issue, to go through a screening level.” So, One company, FreightScan not only is this a compliance and (www.freightscancargo.com) will become a real technology issue, “it’s also a real recently debuted a 3D imaging estate issue,” he adds. system, CargoVizion™, for cargo estate issue.” To meet the requirements of the screening that can screen 12” x 9/11 Act, the Transportation Security — Brandon Fried, executive director, 12” boxes up to fully loaded skids Airforwarder Association. Administration (TSA) has launched and pallets for ‘threat objects.’ The the Certified Cargo Screening Procompany’s CEO and founder, gram (CCSP), a voluntary program that allows certiﬁed Andre Johnson, said that following the CNS Partnership manufacturers, exporters, and forwarders to screen air Conference where the system was unveiled, two domescargo before it is shipped. Currently, air carriers themselves tic carriers stepped forward to become test sites for the perform most of the cargo screening. However, the CCSP pilot screening program. is intending to shift the screening burden further up the “It is our intention to have CargoVision™ on the supply chain to manufacturing and freight forwarding facili- TSA’s ‘Qualiﬁed Product List’ by the end of 2008, and ties, or to a Certiﬁed Cargo Screening Facility (CCSF). To the strong support we have received from the industry become a CCSF, a facility (forwarder, 3PL, or warehouse) only conﬁrms the need for a screening solution that is must apply to the TSA and meet a stringent set of security also a business solution,” he noted. measures. The unit is designed for an overhead mount to free up “But, if a forwarder, for instance, wants to be a CCSF, warehouse ﬂoor space and facilities workﬂow and uses they’ll have to purchase the proper screening equipment non-radiation imaging technology to enhance safety. and basically shoulder all the costs,” explains Fried. As an alternative to high-tech equipment, the TSA is “That’s a big sticking point right now because this man- also relying on specially trained canine teams to assist in date remains unfunded; there are no funds available for the cargo screening effort. The dogs are a ﬂexible and the forwarding community to buy this equipment.” mobile tool, according to TSA ofﬁcials, and can screen According to Fried, “We’ve developed a legislative a hangar-full of cargo in minutes compared to the hours strategy that we hope will result in some form of appro- it would take to manually pass cargo through an X-ray priations. I don’t know how successful we’ll be, but machine. we’re developing a coalition right now.” Not only are industry executives concerned about the Forwarders ﬁnd their niche costs involved with 100 percent screening, it seems the The ﬁnancial impact of the 100 percent cargo screening mandate combined with the other challenges on the technology is lacking too. FreightScan CargoVizion eliminates the breakdown of pallets for screening by providing 3D imaging at the piece level. The overhead mount facilitates the process without interrupting the workﬂow. WWW.WORLDTRADEMAG.COM 35 http://www.freightscancargo.com http://WWW.WORLDTRADEMAG.COM

Table of Contents Feed for the Digital Edition of World Trade - August 2008

World Trade - August 2008 Contents Weathering the Storm Helping the World’s Poorest Nations Benefit from Global Trade Supply Chain Watch Tradewinds World Trade’s Top U.S. Trading Partners LTL Shipping ‘On the Fly’ Air Cargo Flies a New Heading Getting More from China Sourcing Why 3PLs Need a Seat at the C-TPAT Table Performance-based Supply Chains Drive Total Lifecycle Value SmartWay Navigates Sustainable Transportation Around the World in 80 Days—Hours—Minutes

World Trade - August 2008

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