One of the biggest challenges in 2007 will be dealing with the myriad of regulatory changes enacted to enhance security, such as the SAFE Port Act and the Transportation Worker Identification Credential program.

The SAFE Port Act, while theoretically focused on container shipping, applies to all import shipments and contains provisions that will doubtlessly impact project and general breakbulk shippers who are importing cargo in the United States.

For example, it recognizes C-TPAT as a formal program (albeit still a voluntary program) and sets the stage for "post-incident" processing in a way that priority will be given to shipments originating in CSI ports and for which the importers are C-TPAT participants.

Should an "incident" occur, this provision would put a lot of project and breakbulk cargo at the end of the queue. In addition, the act calls for the Department of Homeland Security to require the submission of "additional non-manifest data," the so-called 10+2 requirement. The formal rules must still be determined. However, just as the implementation of the AMS system caused difficulties, so will the implementation of the 10+2 requirement.

The SAFE Port Act also calls for increased tracking of in-bond entries. These changes will have a major impact as companies' building projects increase the extent to which they purchase from overseas suppliers. In addition, the TWIC has the potential to impact import and export shipments, with shipping delays and possible labor shortages. logistics; warehousing / consolidation / distribution; and Internet shipping transaction/tracking management systems.