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Just in Time – Facilitating Secure Cargo Movement

Just in Time – Facilitating Secure Cargo Movement. APEC Air Cargo Security Workshop 24th June, Bangkok, Thailand. Matt Hemy Vice President, Security & Crisis Management DHL Express Asia Pacific. Express Delivery Services (EDS) industry. Some statistics: Over 30 million shipments daily

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Just in Time – Facilitating Secure Cargo Movement

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  1. Just in Time – Facilitating Secure Cargo Movement APEC Air Cargo Security Workshop 24th June, Bangkok, Thailand Matt Hemy Vice President, Security & Crisis Management DHL Express Asia Pacific

  2. Express Delivery Services (EDS) industry • Some statistics: • Over 30 million shipments daily • Our customs declarations are estimated at 25% of total declarations in AP • 1, 200,000 employees / 170,000 vehicles / 1,700 aircraft • Operations in over 220 countries • By 2017 EDS is expected to represent almost 36% of global air cargo • EDS is unique • Speed and Reliability - Nothing Stands Still • Fully integrated, door-to-door delivery • Global reach • Full Custodial control • “Track and trace” technology

  3. Typical End to End Shipment Movement Process ORIGIN SERVICE CENTRE ORIGIN GATEWAY 1 2 3 4 5 6 7 Processed & Bagged (PL) Departs Facility (DF) Arrives Facility (AF) Processed & Bagged (PL) Depart Facility (DF) Confirmed Uplift (CU) Pickup (PU) TRANSFER HUB 9 11 10 8 Processed & Bagged (PL) Confirmed Uplift (CU) Departs Facility (DF) Arrives Facility (AF) DEST GATEWAY DEST SERVICE CENTRE 12 13 14 15 16 17 Shipment Delivered (OK) Arrives Facility (AF) Processed & Bagged (PL) Departs Facility (DF) Arrives at Final Dest (AR) With Courier (WC)

  4. EDS – already secure • Best in Class • We see the shipper and the package • A video record is kept of every shipment in our facilities • Secure facilities and vehicles • Pre-employment screening of staff and contractors • Formal training of front line staff on security practices and procedures • Sophisticated risk management techniques • Our normal theft prevention measures also protect shipments from unauthorized interference • Over 30 years of experience – proven track record with large, professional security teams managing all aspects of security

  5. Secure Facilities: Example

  6. Secure Facility: Security Control Centre

  7. Secure Facilities: CCTV

  8. Securing the EDS Network

  9. Securing the EDS Network 1. X-Ray was suspicious 3. Search revealed gold bullion 2. Shipment manually searched

  10. Track record of Express Industry • Example: Forged Passports and Forged Credit Cards Detected in Thailand

  11. The Regulatory Environment • EDS as integrators have to deal with multiple agencies and regulations as a part of the supply chain • Aviation Security (ICAO, IATA etc) vs WCO SAFE Framework & AEO • Airline industry has been ahead of the ‘game’ and focused on this for a very long time • Physical vs Intelligence layer focus • Government Collaboration with Civil Aviation Administrations, Law enforcement • WCO is now leading the charge on a holistic approach to supply chain security

  12. WCO SAFE Framework – principles & partnerships • The Introduction of the WCO Framework states: • SAFE is designed to secure the movement of global trade in a way that does not impede but, on the contrary, facilitates the movement of that trade. • A holistic approach is required to optimize the securing of the international trade supply chain while ensuring continued improvements in trade facilitation. • Customs to Business partnership is one of the pillars of SAFE • Our customers have long demanded secure supply chains due to their critical nature and high value of their shipments • Thus we have been making significant investments in security of premises and processes for many years, even before 11th September 2001

  13. A balancing act • Authorities now see the need for much greater levels of control in response to the current security situation • At the same time the rising volumes of global trade increasingly demands secure, timely and affordable international delivery of time critical documents and goods • Therefore a coordinated & balanced policy approach is necessary • DHL Express supports Authorized Economic Operator (AEO) regimes, “known shipper” programs and the like because they are good for our business • Authorities should not be too reliant on physical measures rather than “intelligence” available from industry and other government agencies • Security requirements of Customs vs Aviation Security vs Transport Administrations need alignment • Risk vs threat

  14. Physical Security Measures • EDS has substantial programs in place and can control its link in the chain • Physical security depends on the weakest link and clear lines of responsibility • Physical means “visible” which is politically popular • Physical measures can compromise our operation between pick-up and delivery • Compliance is a cost and resources issue for our customers, especially SMEs • Can change the whole EDS business dynamic

  15. The Intelligence Layer • WCO acknowledges the use of strategic intelligence • The US TSA strategic plan is focusing on risk based screening • EDS already works closely with authorities • An area of opportunity for collaboration between government agencies and law enforcement • Enables us to continue to offer high levels of security whilst maintaining trade facilitation

  16. Threat Assessment & use of Data • We have always promoted a threat-based approach to security • Threat Assessment requires data, but we already supply it to Customs • We could tighten and provide account-opening data, also reducing bad debts • Requires coordination between different arms of government • Customs • Immigration • Law Enforcement Agencies (e.g.: Police) • Criminal intelligence bureaux • Civil Aviation authorities • Ministries of Transport

  17. Best Case & Worst Case Scenarios • Ideally …. • The assessment of the totality of our security; does not specify physical measures between pick-up and delivery • EDS integrators improve the timeliness of data on shipments and provide better data from account opening procedures • A “whole of government” approach which considers ICAO, WCO SAFE etc • A collaborative Government & industry approach to air cargo security • Mutual recognition across countries • Nightmare … • Red lane / green lane system • Responsibility for security compliance of our customers

  18. Thank You for your attention Matt Hemy Vice President, Security & Crisis Management DHL Express Asia Pacific

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