WORLD SHIPPING COUNCIL PRESIDENT CHRIS KOCH
TESTIFIES BEFORE SENATE COMMITTEE; URGES ENHANCED
CARGO CONTAINER SCREENING OVERSEAS

Washington, DC — In testimony before the U.S. Senate Committee on Commerce, Science and Transportation yesterday, Coalition for Secure Ports member and World Shipping Council President and CEO Chris Koch urged the Department of Homeland Security (DHS) and Customs and Border Protection (CBP) to adopt a set of recommendations recently submitted by a maritime industry advisory group aimed at enhancing CBP's ability to conduct advanced screening of cargo container information.

The recommendation by the Departmental Advisory Committee on Commercial Operations of Customs and Border Protection, of which Koch is a member, would require importers to provide more detailed information on cargo container contents prior to their being loaded on a U.S.-bound vessel. CBP would process the information through its Automated Targeting System to help determine whether a container poses a security concern.

"The strategy of the U.S. government is to conduct a security screening of containerized cargo shipments before they are loaded on a U.S. bound vessel in a foreign port," said Koch at the hearing on Oversight of the Maritime Transportation Security Act. "We all have a strong interest in the government performing as effective a security screening as possible before vessel loading. Experience also shows that substantial disruptions to commerce can be avoided if security questions relating to a cargo shipment have been addressed prior to a vessel being loaded and sailing."

Under the government's "24 Hour Rule", ocean carriers are required to provide CBP with cargo manifest information concerning all containerized cargo shipments at least 24 hours before those containers are loaded onto the vessel in a foreign port. The U.S. government performs a security screening of relevant cargo shipment data for 100% of all containerized cargo shipments before vessel loading, subsequently inspecting 100% of those containers that raise security issues after the initial screening.

"Today, the only data that the commercial sector is required to provide to Customs for each shipment for screening before the vessel is loaded is the ocean carrier's bill of lading/manifest data," said Koch. "No data is required to be filed to Customs by the U.S. importer or foreign exporter, even though these parties possess shipment information that CBP officials believe would have security risk assessment relevance beyond what is available in the carriers' manifest filings."

Continued Koch, "The government should improve the cargo shipment data it currently uses for its risk assessment. An ocean carrier's bill of lading by itself is not sufficient for cargo security screening. If a risk assessment strategy is to remain the core of the government's cargo security system, the government needs to decide what additional advance cargo shipment information it needs to do the job well, and it must require cargo interests, and not just carriers, to provide the relevant data in time to do the advance security screening."

Koch also addressed other cargo container security issues in his testimony, including radiation inspection of containers, enhancing in-transit container security, and the Container Security Initiative.

Concluded Koch, "The number of containers imported into the U.S. grows each year. In 2004, American businesses imported 10 million loaded cargo containers. An 11% growth rate is projected for 2005, followed by a 10% increase forecasted for 2006. As industry addresses the issues involved in efficiently moving over 11 million U.S. import containers this year, we also must continue to address the unfinished task of enhancing maritime security, and do so in a way that doesn't unreasonably hamper commerce."

To obtain the full text of Chris Koch's testimony to the Senate Committee on Commerce, Science and Transportation, please visit www.secureports.org.

The World Shipping Council, a non-profit trade association of over forty international ocean carriers that together carry more than $500 billion worth of American foreign commerce per year, is a member of the Coalition for Secure Ports, a broad group of private-sector stakeholders who, along with the U.S. government, share responsibility for the security of ports, vessels, and cargo, including cargo containers, as well as the efficient flow of commerce.

For questions about the Coalition for Secure Ports, contact George Felcyn at (202) 466-6210 or .