A report from the European Commission (EC) has criticised the 100 per cent scanning demands for US-bound sea containers by July 1, 2012 as too far too costly.
EC commissioner Algridas Semata said the US legislation would “require sizable investments, increased transport costs and entail massive welfare losses for no proven security benefit”.
Fundamental changes of port procedures and regulations for an estimated growth in shipping costs of 10 per cent on US-bound sea freight, including EUR430 million (US$581 million) costs for scanning and radiation detection equipment and space needed for its use, and additional staffing costs for 2,200 extra personnel.
In a report from London’s International Freighting Weekly, the commission calculated combined losses of EUR10 billion for the US and European Union with global losses in the range of EUR17 billion, and an annual loss of EUR150 billion should the scanning model go worldwide.
“In the absence of a convincing demonstration that 100 per cent scanning at export would produce significant global supply chain security benefits, incurring such costs is not justified,” added the report.
Said Mr Semata: “A multi-layered approach to risk management covering all world trade” with the EU’s aim to roll-out “electronic systems and practical tools of collection of information” during 2010 would be adequate maritime security.