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Just in Time – Facilitating Secure Cargo Movement. APEC Air Cargo Security Workshop 24th June, Bangkok, Thailand. Matt Hemy Vice President, Security & Crisis Management DHL Express Asia Pacific. Express Delivery Services (EDS) industry. Some statistics: Over 30 million shipments daily

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Just in Time – Facilitating Secure Cargo Movement

APEC Air Cargo Security Workshop

24th June, Bangkok, Thailand

Matt Hemy

Vice President, Security & Crisis Management

DHL Express Asia Pacific

express delivery services eds industry
Express Delivery Services (EDS) industry
  • Some statistics:
    • Over 30 million shipments daily
    • Our customs declarations are estimated at 25% of total declarations in AP
    • 1, 200,000 employees / 170,000 vehicles / 1,700 aircraft
    • Operations in over 220 countries
    • By 2017 EDS is expected to represent almost 36% of global air cargo
  • EDS is unique
    • Speed and Reliability - Nothing Stands Still
    • Fully integrated, door-to-door delivery
    • Global reach
    • Full Custodial control
    • “Track and trace” technology
typical end to end shipment movement process
Typical End to End Shipment Movement Process

ORIGIN SERVICE CENTRE

ORIGIN GATEWAY

1

2

3

4

5

6

7

Processed

& Bagged (PL)

Departs

Facility (DF)

Arrives

Facility (AF)

Processed

& Bagged (PL)

Depart

Facility (DF)

Confirmed

Uplift (CU)

Pickup (PU)

TRANSFER HUB

9

11

10

8

Processed

& Bagged (PL)

Confirmed

Uplift (CU)

Departs

Facility (DF)

Arrives

Facility (AF)

DEST GATEWAY

DEST SERVICE CENTRE

12

13

14

15

16

17

Shipment

Delivered (OK)

Arrives

Facility (AF)

Processed

& Bagged (PL)

Departs

Facility (DF)

Arrives at

Final Dest (AR)

With

Courier (WC)

eds already secure
EDS – already secure
  • Best in Class
  • We see the shipper and the package
  • A video record is kept of every shipment in our facilities
  • Secure facilities and vehicles
  • Pre-employment screening of staff and contractors
  • Formal training of front line staff on security practices and procedures
  • Sophisticated risk management techniques
  • Our normal theft prevention measures also protect shipments from unauthorized interference
  • Over 30 years of experience – proven track record with large, professional security teams managing all aspects of security
securing the eds network1
Securing the EDS Network

1. X-Ray was suspicious

3. Search revealed gold bullion

2. Shipment manually searched

track record of express industry
Track record of Express Industry
  • Example: Forged Passports and Forged Credit Cards Detected in Thailand
the regulatory environment
The Regulatory Environment
  • EDS as integrators have to deal with multiple agencies and regulations as a part of the supply chain
  • Aviation Security (ICAO, IATA etc) vs WCO SAFE Framework & AEO
  • Airline industry has been ahead of the ‘game’ and focused on this for a very long time
  • Physical vs Intelligence layer focus
  • Government Collaboration with Civil Aviation Administrations, Law enforcement
  • WCO is now leading the charge on a holistic approach to supply chain security
wco safe framework principles partnerships
WCO SAFE Framework – principles & partnerships
  • The Introduction of the WCO Framework states:
    • SAFE is designed to secure the movement of global trade in a way that does not impede but, on the contrary, facilitates the movement of that trade.
    • A holistic approach is required to optimize the securing of the international trade supply chain while ensuring continued improvements in trade facilitation.
  • Customs to Business partnership is one of the pillars of SAFE
    • Our customers have long demanded secure supply chains due to their critical nature and high value of their shipments
    • Thus we have been making significant investments in security of premises and processes for many years, even before 11th September 2001
a balancing act
A balancing act
  • Authorities now see the need for much greater levels of control in response to the current security situation
  • At the same time the rising volumes of global trade increasingly demands secure, timely and affordable international delivery of time critical documents and goods
  • Therefore a coordinated & balanced policy approach is necessary
    • DHL Express supports Authorized Economic Operator (AEO) regimes, “known shipper” programs and the like because they are good for our business
    • Authorities should not be too reliant on physical measures rather than “intelligence” available from industry and other government agencies
    • Security requirements of Customs vs Aviation Security vs Transport Administrations need alignment
    • Risk vs threat
physical security measures
Physical Security Measures
  • EDS has substantial programs in place and can control its link in the chain
  • Physical security depends on the weakest link and clear lines of responsibility
  • Physical means “visible” which is politically popular
  • Physical measures can compromise our operation between pick-up and delivery
  • Compliance is a cost and resources issue for our customers, especially SMEs
  • Can change the whole EDS business dynamic
the intelligence layer
The Intelligence Layer
  • WCO acknowledges the use of strategic intelligence
  • The US TSA strategic plan is focusing on risk based screening
  • EDS already works closely with authorities
  • An area of opportunity for collaboration between government agencies and law enforcement
  • Enables us to continue to offer high levels of security whilst maintaining trade facilitation
threat assessment use of data
Threat Assessment & use of Data
  • We have always promoted a threat-based approach to security
  • Threat Assessment requires data, but we already supply it to Customs
  • We could tighten and provide account-opening data, also reducing bad debts
  • Requires coordination between different arms of government
    • Customs
    • Immigration
    • Law Enforcement Agencies (e.g.: Police)
    • Criminal intelligence bureaux
    • Civil Aviation authorities
    • Ministries of Transport
best case worst case scenarios
Best Case & Worst Case Scenarios
  • Ideally ….
    • The assessment of the totality of our security; does not specify physical measures between pick-up and delivery
    • EDS integrators improve the timeliness of data on shipments and provide better data from account opening procedures
    • A “whole of government” approach which considers ICAO, WCO SAFE etc
    • A collaborative Government & industry approach to air cargo security
    • Mutual recognition across countries
  • Nightmare …
    • Red lane / green lane system
    • Responsibility for security compliance of our customers
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Thank You for your attention

Matt Hemy

Vice President, Security & Crisis Management

DHL Express Asia Pacific