June 22, 2006 09:25 AM US Eastern Timezone

Cargo Container Security: ABI Research Says Someone Must Take the Bull by the Horns

OYSTER BAY, N.Y.– Governments and port authorities acknowledge that the 17 million cargo containers in use around the world are a weak link in national security arrangements. Import/exporters and manufacturers understand that poor container security poses a risk to the goods they contain. Yet because there are so many players in the global freight ecosystem, and the problem is distributed in thousands of ports and transport hubs around the world, attempts to improve it have been inadequate.

“Efforts underway in the ISO to create a uniform standard for electronic container security should bear fruit within the next 12 months,” says ABI Research analyst Robert Foppiani. “But getting shippers and port operators to comply and to invest in costly systems that provide little or no ROI is another matter. Everyone wants to improve security, but all the maritime industry players are looking to each other to be the first to invest. An organization such as the World Customs Organization needs to mandate electronic seal standards. Until some of these stakeholders make hard decisions, the situation will remain unsatisfactory.”

Several manufacturers–General Electric, Savi Technology and IBM–are designing electronic container security systems. GE’s is called “CommerceGuard.” ABI Research has examined its key elements and found shortcomings that highlight some of the critical issues facing any attempt to secure containers.

CommerceGuard is a proprietary system. That seems a major drawback for a system which, to be effective, must work identically in thousands of facilities worldwide.

In addition, unlike other systems that use disposable tags, CommerceGuard’s are reusable, implying a massive “recycling” operation to move used tags to their next point of use. Shippers are unlikely to accept any such solution.

“Because the container electronic security market is still quite immature, it is difficult for government to specify a single technology as a cure-all solution,” concludes Foppiani. “But until something is done, security will continue to suffer.”

ABI Research’s new study, Cargo Container Security Tracking, examines and evaluates evolving solutions and technologies for global electronic container security tracking. It forms part of the RFID and Commercial Telematics Research Services.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID and M2M, wireless connectivity, mobile wireless, transportation and emerging technologies. For information visit www.abiresearch.com, or call +1.516.624.2500.