Background on Container Security

 

Cargo security is just not tight enough. Globalization has changed our entire life and will not come to an end. Globalization was and always will be enabled by the existence of efficient, effective and secure logistics. Worldwide, more than 400 million cargo container units (TEU) are handled in ports annually, a figure that increases by around 10% annually. The ever-growing container industry has thereby traditionally been facing two major challenges:

1)            Shipment and cargo integrity: Goods worth $10-50 billion a year are lost in high-value cargo theft alone in the US. As a result insurance premiums are unnecessary high.

2)            Operating efficiency and effectiveness: Use of people and equipment is still inefficient due to lack of visibility within the supply chain. This also leads to a loss of confidence among customers.

At the same time globalization also has an effect on the logistical value chain itself. Our complex global logistical networks face a tremendous and growing threat, based on the combination of their vulnerability and their attractiveness for a terrorist attack that could cost the world economy as much as $1 trillion. This leads to a newly emerged third major challenge of the container industry:

3)            Terrorist threat: Each logistics company needs to determine how to appropriately address this issue from a business perspective. Too much effort increases costs while not enough effort may result in delays at customs controls.

the Container Monitoring System (CMS) developed by KGS can provide a solution. The CMS not only increase the security, but at the same time deliver measurable monetary business benefits to companies involved in the logistical value chain.