Transcript CCSP Presentation

The Impact of Implementing Recommendations of the
9/11 Commission Act of 2007 on US-based Shippers
TSA CCSP Presentation to Shipper Associations
May 20, 2009
NOTIONAL – FOR DISCUSSION PURPOSES ONLY
Table of Contents
Overview & Impact of the “9/11 Act”
TSA Approach to Assist Industry in Attaining Screening Mandates
Attaining 50 & 100% Issues and Challenges
Opportunities for Shippers
Links to TSA
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Overview & Impact of the “9/11 Act”
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100% Screening Legislation
Background
 President Bush approved legislation Implementing Recommendations of the 9/11
Commission Act of 2007 on August 3, 2007.
 The legislation mandates 100% screening by
August 2010 and requires TSA to:
 Establish a system to screen 100% of cargo
transported on passenger aircraft.
 Provide a level of security commensurate to that
of passenger baggage (piece level).
 No funding provided.
 Industry expected to bear all costs.
Congressionally Mandated Cargo Screening Benchmarks
9/11 Act
50%
100%
August 2007
February 2009
August 2010
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Piece Level Screening
 Piece level cargo is the individual item within a shipment. The number of pieces is determined
by the number of pieces identified by the shipper-level documentation.
 As of February 1, 2009, 50% of all cargo must be screened at the piece level prior to being
loaded on a passenger aircraft.
 By August 3, 2010, cargo must be 100% screened at the piece level.
 In 2007, over 15 million lbs/day transported on passenger aircraft.
 As of 2007, all screening was performed (allowed) only by airlines.
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Screening Technology Tools
TSA Approved Screening Methods (from 9/11 Act)
 Physical search (Includes opening boxes, removing and opening all inner cartons)
 AT X-ray*
 Explosives Trace Detection (ETD)* 1
 Explosives Detection System (EDS)*
 TSA operated canines
 Any other detection equipment accepted in the future by TSA
(1) Equipment of choice (lowest cost technology).
* All technologies must be on the current TSA Screening Technology List which is made available to screening
participants.
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Impact on Air Cargo
 Over 65% of all cargo on passenger aircraft is uplifted from 18 major gateways (wide body
aircraft cities).
 Most of this is export.
SEA
BOS
DTW
ORD
JFK
EWR
PHL
SFO
IAD
DEN
LAX
ATL
DFW
IAH
HNL
MCO
MIA
 Wide body aircraft (B-777, 747, 767, etc.) carry 94% of “passenger aircraft” cargo
from these cities.
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SJU
Challenges for Industry
 Most “wide-body” cargo is tendered in skids
(larger shipments).
 Most wide-body cargo flows through freight
forwarders (consolidators).
 Freight forwarders typically
“containerize/palletize” cargo prior to
tendering to airlines.
 If “airlines only” must screen all cargo, they
anticipate significant delays, increased
processing/cut-off times, costs.
 Airlines lack space/facilities to “de-palletize”,
screen, and re-configure these shipments.
 Potential exists for damage to
packaging/goods.
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TSA Approach to Assist Industry in Attaining
Screening Mandates
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TSA Approach to Assist Industry in Attaining Screening
Mandates
1. Certified Cargo Screening Program
•
Forwarders and shippers
2. Narrow Body Screening
•
Airlines
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TSA Approach to Assist Industry in Attaining Screening
Mandates
Certified Cargo Screening Program created to:
 Allow screening of cargo early in the air cargo supply chain by a trusted, vetted,
and audited facility.
 Initiate and maintain the integrity of a shipment throughout the supply chain by
utilizing stringent chain of custody methods.
 Enable entities such as shippers to incorporate physical screening into packing
process.
Participation in CCSP is voluntary, but requires participant to:
 Implement and adhere to facility security standards and access controls.
 Train employees and authorized representatives on CCSP and security responsibilities.
 Get Security Threat Assessments (STAs) for employees involved in screening.
 Screen cargo in accordance with TSA screening standards and processes.
 Initiate and maintain chain of custody on all screened cargo.
 Permit onsite facility assessments by TSA-Approved Validation firm or PCSA.
 Adhere to all program requirements, subject to TSA inspections, after certification.
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Who can become a Certified Cargo Screening Facility?
The CCSP is a facility based program. Facilities screening under the CCSP will be known
as Certified Cargo Screening Facilities (CCSFs).
Shipping
Facilities
Third Party
Logistics Providers
Manufacturing
Facilities
Warehouses/
Distribution
Centers
Contract
Manufacturers
Freight Forwarding
Facilities
 Any entity with the desire to screen cargo must have a facility that can be secured.
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TSA Approach (cont.)
Narrow Body Screening
 Required airlines to screen 100% of cargo on narrow body aircraft
October 2008.
 Primarily small “express” shipments.
 No “skids” fit into narrow body aircraft.
 No further impact to shippers is anticipated.
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CCSP Applications Received/Certifications thru May, 2009
 Applications received as of May 2009:
– 1,124+ CCSF applications have been received.
 Certification as of May 20, 2009:
– 350 facilities have been certified (90% are freight forwarders).
 Application momentum has fallen off since “50% attained”:
– From existing applicants.
– Few new applicants.
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Attaining 50 & 100% Issues and Challenges
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Reaching 50% (Feb 1, 2009)
50% milestone was “seemingly easy” for shipping community, but:
 Economic downturn caused over 35% drop in volume of cargo.
 Airlines invested significantly in additional technology (primarily ETD).
 CCSF (Certified) Freight Forwarders handled some cargo screening on behalf of shippers
(a new program).
 TSA provided Air Carriers and IACs with flexibility when determining what to screen at
50%.
- Narrow body shipments helped the equation.
 Certain commodities were excluded for a limited time frame (until August 31st, 2009).
NOTIONAL – FOR DISCUSSION PURPOSES ONLY
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Industry Challenges for 100% (Aug 1, 2010)
The 100% cargo screening deadline is rapidly approaching.
 All commodities will require screening, at the piece level, prior to transport.
 Alternate Means of screening of certain commodities will be eliminated September 1, 2009.
 Most air cargo is still tendered on skids/shrink wrap/banded.
 Limited screening technology available
to meet industry’s need (manufacturing backlogs).
• 85% of entities utilize ETD as their primary method of screening.
• Alarm resolution for ETD (other than physical search) is challenging.
• High risk of physical inspection resolution as a result of “contamination” while in forwarder or airline
vehicles/docks.
- Recent example:
- A shipment of venetian blinds was screened by canine and ETD, both recognized alarm.
Resolved by physical inspection and found to be clean.
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Industry Issues
Through extensive interaction with Industry, we have gained insight into some key
issues specific to various industries:
 Hi Tech: Some products are sensitive to static discharge.
 Perishables: Delay in screening may damage or spoil
goods. Goods may also require refrigeration.
 Pharmaceuticals: Many products must be kept refrigerated.
Others are FDA sealed and cannot be opened without
damaging content.
 Museums & Galleries: Fine art is fragile, priceless, and
unique; requiring very specific screening processes and
procedures.
 Most shippers do not want to risk the possibility of having
their shipments opened for physical resolution of any “false
alarm” issues (contamination).
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TSA Concerns toward 100%
 Waning CCSF application flow from shipper community.
 Perception that reaching 50% was easy, thus a similar result at 100%.
 The hardest part still lies ahead.
 Difficult, complex cargo remains.
 Most of the shipments screened today are not skidded.
 Airport/airline space limitations inhibit ability to break apart, screen, re-skid, etc.
 Time constraints – carriers indicate they will require significantly earlier cutoff times.
 Risk of delay or damage.
 Economic recovery leading to increase in cargo volume.
 Screening 100% of 15 million lbs in 2010 vs. 50% of only 9 million lbs in February
2009. This represents a 300% +/- increase in the amount of cargo to be screened!!
 Commodities with unique screening needs.
 Insufficient availability of technology to meet industry demand (backlogs).
 High risk of physical inspection due to potential contamination in transit to carriers.
 Maintain integrity of shipper skids.
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Opportunities for Shippers
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TSA “Stimulus” for Shippers
Early Participation
Future Participation
 Extended period of time (90 days) to review
regulatory documents before committing.
 Limited time allowed to review regulatory
documentation before required decision.
 Free onsite facility assessments by TSA.
 TSA-Approved Validation Firms will perform
facility assessment for a fee.
 Free Security Threat Assessments for up to
200 individuals per facility.
 STA submission for a fee (currently approx.
$28).
 Free TSA consultation services – site visits,
examples and templates, step-by-step
guidance through certification.
 May need consultant support?
 Deferred screening start date option.
 Required to commence screening and attain
100% within 90 days of certification.
- Shipper will have an extended period
of time to attain 100% screening level postcertification.
 Submit applications by August 1, 2009 to secure early participation benefits.
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Summary
 50% was reached thanks to the hard work of Air Carriers and existing CCSFs Freight
Forwarders.
 Reaching 100% requires larger community effort to overcome industry challenges and
TSA concerns.
 CCSP is the solution for industry to meet the 100% screening mandate, and fully
supported by the air freight and air carrier industries.
 Only CCSF shippers can ensure the integrity of their shipments.
 Most shippers can readily incorporate “physical search” into packing/shipping process –
without investing in equipment.
 TSA is providing an incentive for shippers to join CCSP.
 The alternative – only cargo that is fully screened will be uplifted on August 1, 2010.
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Links to TSA
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For more information please visit
http://www.tsa.gov/what_we_do/tsnm/air_cargo/index.shtm
Follow link for more information on the Certified Cargo Screening Program
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