security of maritime logistics a forwarder’s view

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MS&D Panel II | Hamburg | 5 September 2012 Page 1 Security of Maritime Logistics A Forwarder’s View International Conference on Maritime Security & Defence Hamburg, 5 Sep 2012 Peter Sonnabend

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MS&D Panel II | Hamburg | 5 September 2012 Page 1

Security of Maritime Logistics – A Forwarder’s View

International Conference on Maritime Security & Defence

Hamburg, 5 Sep 2012

Peter Sonnabend

MS&D Panel II | Hamburg | 5 September 2012 Page 2

Ocean Containers – Backbone of Global Supply Chains

Global ocean container volumes are on the rise reflecting the overall

state of the world economy and in the major regional markets.

MS&D Panel II | Hamburg | 5 September 2012 Page 3

DHL Global Forwarding – Ocean Freight

GLOBAL FORWARDING / FREIGHT SUPPLY CHAIN

Contract Logistics &

Industry Solutions

Intercontinental

Transportation

Europe-wide

Transportation

EXPRESS

Time-definite

International Shipments

Air Freight

Multimodal

International SCM

Industrial Projects

Customs Brokerage

Lead Logistics Provider

DHL OCEAN FREIGHT key facts

over 4,000 professionals

over 330 sites worldwide

over 2.7 Mio TEU per year (FCL)

over 45,000 weekly point pairs (LCL)

Source: DPDHL annual report 2011

OCEAN FREIGHT

MS&D Panel II | Hamburg | 5 September 2012 Page 4

DANMAR LINES is DHL’s own NVOCC (Non Vessel Operating Common

Carrier) through which DHL acts as a carrier for ocean shipments.

A wide range of services and competitive

prices provided through DANMAR LINES

centralized purchasing

Collaboration with partner carriers through

long-term agreements and EDI links

Global door-to-door full value coverage

Space allocation agreements in view of

supply and demand

Reliable service quality

Benefits of Danmar Lines concept

DHL Ocean Freight – DANMAR Lines

MS&D Panel II | Hamburg | 5 September 2012 Page 5

Main Stakeholders of International Maritime Logistics

Heath Robinson Machine:

an extensively complex arrangement with

no apparent way of how it is functioning

Forwarders orchestrate the many actors and

processes along door-to-door supply chains.

Consignor Forwarder Carrier Terminal Haulier Customs Consignee

MS&D Panel II | Hamburg | 5 September 2012 Page 6

Supply Chain Risks and Risk Management

Logistics services manage multifold risks in the supply chain based

not the least on the stated content and character of the loaded cargo.

Lithium

MS&D Panel II | Hamburg | 5 September 2012 Page 7

The Perils of Misdeclared Container Cargo

MSC Flaminia – Atlantic Ocean 2012 MSC Napoli – English Channel 2007

MS&D Panel II | Hamburg | 5 September 2012 Page 8

Container Security through Physcial Scanning

MEGAPORTS

Post-9/11 supply chain security initiatives have

focused on 100% scanning of export containers.

MS&D Panel II | Hamburg | 5 September 2012 Page 9

Container Security through Risk-based Assessment

Advance risk analysis of containers is envisaged

to segragate legal trade from suspicious cargo.

EU/US Joint Statement on Supply Chain Security Aug 2011

National Strategy for Global Supply Chain Security Jan 2012

MS&D Panel II | Hamburg | 5 September 2012 Page 10

Maritime Container Security in the Business Domain

► Time-sensitive shipments

Keep watch on location along the route

(e.g. checkpoints, misroutings)

► Value-sensitive shipments

Keep watch against unauthorised access

(theft, pilferage, IP, counterfeit; terrorism)

► Condition-sensitive shipments

Keep watch on ambient hazards to cargo

(e.g. temperature, humidity, shock)

Commercial requirements for shipment integrity and

visibility echo core aspects of public security needs.

MS&D Panel II | Hamburg | 5 September 2012 Page 11

DHL OCEAN SECURE Standard

operations Supporting setup of improved

processes through insights into

door-to-door container conditions

In-transit

intervention Execution of corrective

or remedial action protocols

prompted by in-transit alarms

In-transit

visibility Monitoring of mission critical

parameters and notification of

remote users in case of exception

Visibility of container shipments enhances operational

control and planning quality for future shipments.

DHL OCEAN SECURE – In-transit Container Monitoring

MS&D Panel II | Hamburg | 5 September 2012 Page 12

DHL is providing tailored solutions for door-to-door

visibility of sensitive ocean container shipments.

DHL OCEAN SECURE – Ocean Freight Remote Attendance

Remote data capture Data transmission Data interpretation

O C E A N S E C U R E

MS&D Panel II | Hamburg | 5 September 2012 Page 13

DHL has partnered with selected specialist providers

of monitoring solutions for containers and cargos.

1 2

4

6

3

5

[1] overt GPS tracker for containers; [2] covert GPS tracker for cargo; [3] GPS/GSM electronic container lock;

[4] GPS/GSM container monitoring system; [5] Container monitoring system with satellite communications;

[6] data logger for monitoring of critical cargo conditions

DHL OCEAN SECURE – Electronic Container Companions

MS&D Panel II | Hamburg | 5 September 2012 Page 14

From Business Data to Business Intelligence

Carrier

data

Vessel

data

Terminal

data

Container

data

Shipment

data

Planning

data

Information from container devices and other sources need to be bundled

and processed to translate raw information into situational awareness.

Collaborative Information Services for

Container Management

data pooling ● business rules

response management

Technology and Electronics

Life Sciences and Health

Automotive

Government and Defense

MS&D Panel II | Hamburg | 5 September 2012 Page 15

Data Pipeline for Risk-based Assessments

Coherent and controlled flow of original data is envisioned to considerably

enhance maritime security and clearance of containerised ocean freight.

Common assessment and analysis of risks in global supply chains

Extended vision: data pipelines might ultimately facilitate import clearance by the export country under bilateral customs agreements („pushing borders out“), offering to detect and resolve any issues close to the cargo origin. This requires the physical and digital integrity of container contents and descriptions to be protected downstream of clearance by e.g. electronic container seals and encryption techniques.

Consignor Forwarder Customs Customs Forwarder Consignee

EXCHANGE PLATFORM

e.g. tradeXchange (SG)

EXCHANGE PLATFORM

e.g. portbase (NL)

EXPORT SIDE IMPORT SIDE

Living Lab 1: Asia to Europe

Living Lab 2: Europe to USA

Living Lab 3: Europe to Africa

MS&D Panel II | Hamburg | 5 September 2012 Page 16

Thank you for your attention!

Security of Maritime Logistics – A Forwarder‘s View