BSI Supply Chain Solutions Response to Explosives Detected within US Destined Parcel Shipments

RESTON, Va., Nov. 1, 2010 /PRNewswire/ -- The suspicious packages found in cargo shipments in the United Kingdom and Dubai on October 29th led to a major disruption of cargo networks around the world. Cargo airplanes and trucks in Pennsylvania, New Jersey and New York were halted and searched for additional packages that may have been linked to what initially appears to be a plot carried out by a known terrorist group operating in Yemen. These events have captured the attention of the world as global media outlets ran "Cargo Chaos" headlines with images of cargo planes sitting idle on airport runways.  The complexity of the international supply chain and interdependencies of commercial passenger and dedicated cargo aircraft was further illustrated when a passenger aircraft which was carrying cargo was escorted by U.S. military aircraft into a New York airport.

While the premise of commercial cargo shipments being disrupted by terrorist networks was highlighted by today's events, "Supply Chain Terrorism" is not new threat. BSI has determinted that since 2004, 600 attacks targeting the supply chain have occurred which equate to one attack every four days. While the Modus Operandi of these attacks vary from today's events, data indicates Supply Chain Terrorism is becoming increasingly attractive to terrorist organizations. While attacks targeting components of the supply chain disrupt trade, endanger people and pose a serious economic threat, the supply chain is also used by terrorist organizations to fund their activities. Terrorist organizations are indirectly linked to sea piracy, and directly linked to illicit drug trade and the movement and security of illicit drugs transiting between countries.

The U.S. Customs and Border Protection's C-TPAT risk based supplier assessment requirement and concept of "securing at the source" is essential to early identification of potential supply chain risks. A thorough understanding of risk to include: supply chain terrorism, anti-Western terrorism, cargo disruption exposure and transportation modality tampering rates are essential when determining an importer's at risk trade-lanes. The key to early detection of supply chain exposures remains implementing risk-based assessments and avoiding a "compliance equals risk" approach to determining risk.

As the cargo industry is in the midst its busiest season of the year, we can only speculate that the insertion of potential explosive devices in a parcel shipment served as a test of our origin and transshipment trading partner's detection capabilities, an attempt to slow and disrupt trade or as a vehicle of attack. Dan Purtell, BSI's Senior Vice President for Supply Chain Solutions stated "regardless of motive, this incident highlights the fragility of the supply chain, the increased targeting by terrorist organizations and the importance of understanding the risks presented by suppliers and supply chain partners."

About BSI

BSI Group is a global independent business services organization which enables businesses, governments and other organizations to increase profits and market access, and to enhance reputation with its standards-based solutions and assurance services. From its origins as the world's first National Standards Body, BSI Group draws upon over 100 years' experience to partner with 66,000 organizations in 147 countries from its 50 offices. Today, through its independence, innovation and integrity, BSI continues to improve the lives of millions by raising standards worldwide.

BSI's Supply Chain Security Solutions' portfolio offers state-of-the-art supply chain security tools coupled with BSI's extensive field-based network of supply chain security assessment professionals. As a leading global provider of risk-based solutions, assessments, and training programs, BSI's solutions are geared toward improving corporate efficiencies and protecting corporate brand. By incorporating proprietary global cargo tampering data and terrorism risk modeling to evaluate overall supply chain risk as well as the potential risk exposure of specific suppliers, BSI is able to provide maximum visibility and business intelligence to emerging markets and supplier practices worldwide. www.supplychainsecurity.com.

SOURCE BSI