HONG KONG SHIPPERS WORRY ABOUT CSI IMPLEMENTATION
Hong Kong shippers generally back increased security in the movement of international containers en route to the United States, but they’re concerned that certain requirements could disrupt the flow of trade in port.
On Sept. 23, the Hong Kong government agreed in principle to participate in a U.S. Customs program to improve ocean freight security, known as the Container Security Initiative.
The CSI program, which was launched by U.S. Customs earlier this year, wants to push container security away from U.S. ports of entry and closer to the cargo origin ports. So far, a handful of countries in Europe and Asia have agreed to participate.
One of the aspects of CSI that has Hong Kong shippers most concerned is the proposed requirement for advance manifest data prior to loading. In Hong Kong, shippers must file cargo data to Hong Kong Customs 14 days after the freight has departed by ship.
Another concern is how CSI will account for transshipments, which account for about 80 percent of cargo movements through Hong Kong’s seaport.
Cargo delays because of lack of advanced shipment information could be detrimental to Hong Kong shippers. “Hong Kong thrives on its ability to be able to meet such last-minute changes and should the implementation of CSI change that, it will greatly harm Hong Kong’s businesses,” said Willy Lin, chairman of the Hong Kong Shippers’ Council at World Customs Organization meeting in Brussels Monday.
“The biggest worry of a shipper is that a container that is picked for inspection might not be able to meet its sailing schedule,” Lin added. “This could lead to substantial commercial consequences for ‘part shipment’ or ‘split shipment.’ And shippers can be sued for non-compliance with letters of credit, breach of contract and so on.”
Hong Kong’s shippers, however, believe participation in CSI in the long-term will produce benefits, especially as the program details are worked out.
Lin said a major benefit of CSI will be improvements to Hong Kong shippers’ competitiveness in the United States and ability to “expedite clearance of goods at U.S. ports.”
“In this logistics era, ‘predictability’ and ‘reliability’ are very critical issues,” he said. “There is little or no buffer at all with the ‘just-in-time’ and ‘zero inventory’ concepts that have been put into practice.”
Another benefit for Hong Kong shippers will be the implementation of standardized automated data exchanges with Hong Kong Customs. “By bringing all parties together to work on a single platform, it will enhance the efficiency and productivity for all parties involved in the process.”