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Advisories ::
Security Lengthening Shipping Cycles: Survey

Extracted from The Journal of Commerce On-line

Shippers are extending supply-chain times, and coordinating the delivery of cargo and documentation to ports of embarkation to compensate for the added security measures imposed by the U.S. Customs Service's 24-hour rule, according to a new survey.

The study, by Philadelphia-based logistics provider BDP International, found that 30 percent of 112 shippers surveyed said they were allowing extra order time in the supply cycle. Another 15 percent said they were scheduling simultaneous delivery of cargo containers and cargo manifest data at foreign ports.

"The data suggest that shippers are taking steps to make sure they're compliant," said Arnie Bornstein, BDP director of corporate communications.

Shippers reported that they encountered delays because of carrier directives, lack of support by suppliers, and internal barriers that impeded changes in data.

However, two-thirds of the respondents believed that the 24-hour rule would enhance security.

More than one half said described the effect of the rule as "significant" or "moderate." About half also said they had not determined how to recover the additional costs of complying with the rule.

The respondents also were looking at the effects of additional Customs rule-making. Sixty-eight percent were evaluating the advance cargo-reporting rules that Customs will make under the Trade Act of 2002.

BDP commissioned the survey by Adler Research of Bethlehem, Pa., from Feb. 10-17. The company solicited online responses from 715 companies for a return rate of 15.6 percent.

About half of the respondents were U.S. companies, the rest were in Asia, Europe, Africa, the Americas and the Middle East. Customs began to enforce the 24-hour rule on Feb. 2. The rule requires carriers to file essential cargo-manifest data through the Automated Manifest System 24 hours before a container is loaded aboard a ship at a foreign port.

BDP plans to publish a complete report of the survey next week.

By R.G. Edmonson

Global Network Locator