EU slams 100pc box scanning as too costly to implement

2008-5-20

The cost of scanning 100 per cent of inbound containers to prevent terrorists smuggling into the United States weapons of mass destruction has been estimated at more than US$500 per unit, which would be borne by US trade partners.

According to a confidential memo leaked to Lloyd's List that summarised the results of a six-month pilot project conducted at the Port of Southampton and with "preliminary contributions from EU member states," the European Commission concluded "a simple calculation of total cost relative to the number of scanned US-bound containers gives an average cost/container that exceeds $500."

The Southampton trial involved the checking for radiation of 90,000 containers at the port gates. Another 5,500 US-bound containers were x-rayed for non-intrusive imaging of the container contents. The trial cost a total of US$18 million.

The report cited a letter from the Commission to US authorities calling the proposal a "unilateral" US law that is supposed to be in force by 2012. "It is to be regretted that the USA did not await the results of the pilot actions, including the European pilot in the port of Southampton...before pressing ahead with this legislation," the Commission said.

One hundred per cent scanning "might even create a false sense of security," it was claimed. It could "undermine security by diverting scarce resources from other essential measures." It was also "unilateral" and "extra-territorial" in that trading partners would be expected to bear the costs. "If it were pressed on with, it would tend to undermine the process of mutual recognition of US-EU security standards and controls."

Opponents of the law claim it would hardest hit smaller ports as US-bound trade would flow towards larger ports equipped with the necessary scanners. Scanning boxes, which arrive by rail, barge and feeder vessel "would pose tough challenges" in the UK that typically delivers containers to the door by truck.

At present between 0.1 per cent and three per cent of all containers are scanned at EU ports. Security services use a matrix, which assesses risk based on consignor and consignee details, among others, the report said.

Scanning transhipment containers "is likely to lengthen the average waiting time [of vessels] significantly" the 14-page letter claims. "Preliminary feedback from large EU ports offers cost indications in excess of $300/container for moving staked containers to scanning stations."

The letter went on to claim that increased waiting times and congestion would amount to "billions of dollars annually," all of which would be met by shippers and the transport industry.

Furthermore, the US makes no mention of scanning bulk cargo, ro-ro traffic and cruise ships "which may carry weapons of mass destruction or their components" the Commission said.

The Commission adds: "It would be difficult for customs administrations to set sovereignty issues aside in order to implement the US legislation, to invest massively in a measure designed to protect the US and to divert resources away from measures designed to strengthen security in the EU."

Source: Schednet
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