ESC concerned by security proposal
The European Shippers’ Council fears that new security measures outlined in a Det Norske Veritas (DNV) presentation for the European Commission last week would lead to increased cost burdens on the transportation sector and a “breakdown of the supply chain.”
The DNV study’s recommendations included “standardized sealing of cargo, screening of personnel, risk-awareness programs and strict compliance of the measures by (police) checks,” all of which should be made compulsory by 2009. The report estimated that the costs to small companies could reach euros 90,000 ($106,155) annually.
“Those shippers that consider it commercially interesting to invest in supply chain security should be attracted to a voluntary scheme, whereby incentives for investing in security need to be evident,” the ESC said. “Industry however strongly fears that a failure to achieve these objectives would lead to increased costs for business industry, paralyze supply chains and jeopardize the Lisbon agenda,” the ESC said.
The EC said its own proposal, which is in the final stage of preparation, will involve voluntary measures only, and that the DNV report should not be regarded as a formal impact assessment.