The document provides an overview of maritime security and discusses various security measures implemented after 9/11. It outlines threats like weapons of mass destruction, human trafficking, and drug smuggling that terrorists and criminals pose to the maritime industry. Security initiatives like the Container Security Initiative, 24-Hour Rule, and Customs-Trade Partnership Against Terrorism aim to identify high-risk containers and ensure supply chain security. While these measures increased security, they also led to higher compliance costs for shippers and carriers and negatively impacted competition between ports.

1. Dangerous Containers
An overview of maritime security
Robin J. Chao
American Military University
TLMT 605 D001 Fall 2015
Dr. Carmen Mousel
January 24, 2016

2. Introduction
• September 11, 2001 highlighted the need for
better security measures throughout the
transportation network
• Maritime security is essential to the seamless
flow of goods in a world economy as sea
containers represented 66 per cent of U.S.
imports as of July 2003
• Security Managers ensure the safety of ports,
vessels, containers, and associated infrastructure
and workers
(Yang, 2011; GAO, 2003)

3. The Threat
• Terrorists, smugglers, and ordinary businesses
move cargo through the maritime industry
and threaten its security through a variety of
ways:
– Weapons of Mass Destruction
– Human Trafficking
– Drug Smuggling
– Mislabeling hazardous materials to lower tariffs
(Yang, 2011)

4. Security Measures
• Container Security Initiative
• 24- Hour Rule
• Customs – Trade Partnership Against Terrorism
• Approved Economic Operator
• International Ship and Port Security
(Yang, 2011)

5. Purpose of Report
• Educate Taiwanese companies and general
public on the real purpose of the Container
Security Initiative
• Identify maritime supply chain security risk
factors
• Develop risk management strategies
(Yang, 2011)

6. Container Security Initiative
• Assigns American officers at foreign ports to
accomplish four tasks:
– Identify high-risk containers
– Pre-inspect containers bound for U.S.
– Pre-inspect containers using high-tech devices
– Develop and use Information Technology to
ensure container security
(Yang, 2011)

7. 24-Hour Rule
• All liner companies and Non-Vessel Operating
Common Carriers must give the U.S. a one day
advance notice of a container being loaded
onto a vessel
• This rule affects carriers as well as freight
forwarders

8. Positive Impacts of CSI and 24-H rule
• 29 per cent reduction in transportation time
• 30 per cent increase in cargo deliveries
• 31 per cent shorter problem resolution time
• 14 per cent reduction in stock over-capacity
problems
(Yang, 2011; MIT report)

9. Negative Impacts of CSI and 24-H rule
• European Commission stated CSI distorts
competition between ports
• Port authorities that sign agreement are
granted preferred status over ports that do
not
• Shippers and Carriers incur compliance costs
(Yang, 2011)

10. Conclusions
• Maritime security risk are categorized as:
– Operational (longer lead times for data entry, less
flexibility in manifest revision, increasing line
items increases security barriers)
– Physical (container inspection charges, longer
cargo handling time, additional document charges
– Financial (disclosure of business information,
financial loss, reputation loss)

11. Conclusions (continued)
• Taiwan government established new anti-
terrorism laws and regulations in line with U.S.,
World Container Organization, and International
Maritime Organization mandates
• 24-hour rule, while rapidly adopted by trading
countries, increases logistics costs and may put
downward pressure on economic growth
• Logistics companies should design auto matching
system to double-check data enter in export
manifests
(Yang, 2011)

12. References
General Accounting Office (2003). Container
Security: Expansion of Key Customs
Programs Will Require Greater Attention to
Crucial Success Factors, GAO-03-770.
Washington DC.
Yang, Y. (2011). Risk management of Taiwan’s
maritime supply chain security. Safety
Science, 49(3), 382-393.
doi:10.1016/j.ssci.2010.09.019