Asia likely to be hardest hit by scanning of US-bound containers
Shippers in Asia, Europe and North America fear that a 9/11 provision that requires the compulsory scanning of all United States-bound containers at foreign ports within five years will slow the flow of goods and even create a gridlock at ports at a time of booming world trade.
Eighty-nine per cent of containers arriving from overseas ports are scanned as they enter the US, up from 37 per cent a year ago.
The Global Shippers Forum is concerned that the unpopular law will drive up shipping costs - owing to the high cost of investment and maintenance involved - forcing consumers to ultimately pay more for goods. Longer waiting times to clear containers are expected to emerge at weak points in the global port system, triggering delays along the entire supply chain, without necessarily improving security at US ports.
Asia is likely to be hardest hit by the new legislation as it is the main exporter to the US. 'We need to ensure that the pursuit of port security measures should not impede legitimate trade and the efficient operation of our port. We will monitor closely the development on the 9/11 Act and engage the US government in active dialogue as appropriate,' said a Hong Kong government spokeswoman.
Ahead of the introduction of the unpopular bill, Hong Kong and the US have recently agreed to co-operate on the Secure Freight Initiative that aims to keep radioactive weapons out of US-bound cargo.
Authorities in Hong Kong expect to start providing radiation detection and imaging capabilities on a limited capacity in the fourth quarter as part of a pilot scheme aimed at determining the impact of radiation scanning at large volume ports. In fiscal year 2006, Hong Kong processed more than 1.3 million shipments bound for the US, constituting approximately 13 per cent of all shipments arriving in the US.
Under the initiative, US-bound containers leaving Hong Kong via a designated Modern Terminals facility in Kwai Chung will be scanned on a voluntary basis.