Ports and the supply chains vulnerability

The report, part of PwC’s Transport & Logistics’ 2030 series: Securing the Supply Chain, warns that cyber, ‘hacker’, pirate and terrorist attacks are expected to rise across the global supply chain over the next 20 years, and notes that since 90% of the worldwide trading volume is concentrating on about 39 gateway regions, a failure of just one will have global repercussions.

However, given that most of the security issues that ports face are ‘physical’ in nature and so focus naturally on box traffic, Klaus-Dieter Ruske, partner at PwC, told Port Strategy that while a total screening of containers could improve the security level, performing this effectively means analysing radiograms by skilled staff in realtime. And, added Mr Ruske, “this would lead to a significant slow-down of port operations” with consequent impact on travel time, storage capacities and costs.

His view is that the only way to minimise the cumbersome screening in ports is to “shift security measures to an earlier step in the supply chain”, putting the onus on shippers to effectively seal the container on loading, with a guarantee that the freight is ‘clean’.

But some of the threat comes from natural disasters. Iceland’s volcanic eruption in 2010 caused a ripple effect across the world and cost the airline industry around $1.7bn in revenue.

So Mr Ruske concluded that awareness and drills were needed amongst port staff, “As a general rule, I think technology alone can’t secure the supply chain. People are needed too, to provide human intelligence and good governance.”