The Shippers’ Voice has been told that new rules to tighten up air cargo security may not close security holes for a further two years. An expert source working close to the issue believes many European member states are not ready to provide independent validation programmes for shippers in time for the implementation deadline in April.

Security screening of air freight for many shippers has become a costly burden and has the potential for causing delay to the freight. All air freight flying in the belly-holds of passenger aircraft (estimated to be in the region of 50-70 percent of world air freight volume) must be scanned by either regulated freight forwarders or the airlines, unless the shipper is an authorized, or ‘known’ consignor. Under these circumstances, the shipper can perform the required level of security checks and implement measures to safeguard the security and integrity of the freight. This could have huge benefits for those who regularly rely on air freight and would otherwise incur regular security charges from either the freight forwarder or the airline; they might also be able to ‘jump’ any queues where freight is waiting to be scanned or screened.

To become an authorized or ‘known’ consignor the current rules in many parts of Europe are surprisingly tame: a shipper need only provide an annual security declaration to a minimum of one Regulated Agent – i.e. an agent that has been authorized to receive freight from a ‘known consignor’, and then to maintain the security of the freight while in their charge. The ‘Known Consignor must be identified to the appropriate administration responsible for air cargo security in each member state and recorded on a list. The Regulated Agent should satisfy itself that the ‘Known Consignor’ is applying appropriate security to the air freight before handing it over to them.

The problem with this approach has been over whether Regulated Agents properly assess their customers’ security measures before qualifying them to be ‘Known Consignors’. That is why some member states of the EU, such as the UK, introduced a number of years ago, rules requiring shippers to be audited and validated by authorized independent inspectors. As from April this year, the EU rules will introduce a similar system.

However, The Shippers’ Voice has become aware that for a period of time after, there will still exist a potential weakness in air freight security, one which may also disadvantage shippers  that become ‘known consignors’ after March 2010.

As the new air cargo regulations are currently worded, (EC 300/2008 and EC 272/2009) it appears that all EU ‘known consignors’, who have been recognized by (valid) Regulated Agents in their member states prior to April 2010, will be able to continue enjoying known consignor status (assuming they continue to provide annual statements) for a further 24 months after the new regulations go into effect.

The Shippers’ Voice was told by the expert that, should this interpretation be correct and adopted, then this may mean there could be the potential for unsecure freight being shipped on passenger aircraft after March this year. The source believed that   authorities in certain EU Members States are interpreting the rules in the way described. Therefore, all consignors that are registered with the the authorities in  these member states will be exempt from having to become independently validated known consignors prior to April 2012.

After April 2010, any EU shippers who are not ‘known consignors’ will not be able to ship cargo on passenger aircraft without the cargo being screened/scanned by a Regulated Agent or the Airline, until they have been independently validated as known consignors. This may seem somewhat unfair to those companies putting themselves through the independent validation programme knowing that others may escape this process until 2012.

Compounding the issue further, according to our expert, is that not every member state in the EU is yet ready to introduce a system of independent validation: Spain, Germany , Italy and  other significant Member States may be  among those countries that are some way off from being ready to offer this option. If this were the case (and it should be noted that The Shippers’ Voice has not been able to verify this), then  shippers not already ‘known consignors’ in these Member States would be excluded from becoming known consignors until the Member States in which they operate establish independent validation known shipper regimes.

A new air cargo security database is currently being established by the Commission to hold the names of Regulated Agents and Known Consignors submitted by the authorities in the Member States.  When this database becomes operational, it will only hold the names of Regulated Agents who have been inspected and approved by the authorities in each Member State and Known Consignors who have been approved through the process of independent validation.  Thus the regulated status of each participant in the EU air cargo industry will be published and known to all Regulated Agents and Airlines.

This could further disadvantage the shippers operating in Member States that are not able to rapidly introduce a system of independent validation.

The Shippers’ Voice raises this issue as a matter of concern that should be investigated further.