protect_2015_maritime threats to supply chain
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Organized By:
Leverage International (Consultants) Inc.
Maritime Threats to Supply ChainMar-John P Cruz, CFI, BCCP
Director
Organized By:
Leverage International (Consultants) Inc.
Agenda
Why Maritime? Why Ocean Freight?
Maritime Threats to Supply Chain
- Internal & External
Maritime Security Cooperation
- Collaboration between Governments &
Private Sector
Organized By:
Leverage International (Consultants) Inc.
Why Maritime? Why Ocean Freight?
Lesser transportation costs – It is often much
cheaper to ship by sea for large and heavier
shipments.
Improving transit times - technology
continuously improves in the global maritime
industry. Ships are becoming faster and more
efficient. Canals have created shorter shipping
routes with shipments crossing the oceans with
shorter transit times.
Organized By:
Leverage International (Consultants) Inc.
Why Maritime? Why Ocean Freight?
Environmental Impact: Not everything is about
the bottom line and convenience. While the
social awareness of environmental issues can
change the way the public looks at a company
and affect its bottom line, we all have a
responsibility of taking care of the planet on
which we live. CO2 emissions are much higher
in air freight transport than ocean freight
transport.
Organized By:
Leverage International (Consultants) Inc.
Why Maritime? Why Ocean Freight?
Today, nearly 80% of global trade is transported
in ships.
There are currently over 17 million shipping
containers in the world, and five or six million of
them are currently shipping around the world on
vessels, trucks, and trains. In total, they make
around 200 million trips a year.
The value of the shipping industry to global
economy exceeds US$ 400 Billion per year.(Source: World Shipping Council)
Organized By:
Leverage International (Consultants) Inc.
Maritime Threats to Supply Chain
Internal
-Theft, Pilferage, Tampering, Contamination
(transport, storage, shipping)
External
- Piracy & Terrorism
- Natural Disasters & Climate Change
Organized By:
Leverage International (Consultants) Inc.
Maritime Threats to Supply Chain
Internal
-Theft, Pilferage, Tampering, Contamination
(transport, storage, shipping)
Supply Chain Road Map
Organized By:
Leverage International (Consultants) Inc.
Maritime Threats to Supply Chain
Theft, Pilferage, Tampering, Contamination
Harbors / Ports: Wharf premises, Co-Loaders
Premises, Container Yards, Ocean Freight
Terminals, 3PL Warehousing, Manufacturing
Site
Land Transfers – Truck Hijacking
Organized By:
Leverage International (Consultants) Inc.
External Threats: Piracy and Terrorism
• As of January 2015, Asia maritime piracy attacks
rise to 75% of global total (source: Reuters)
• World Bank estimates the global economic impact
of piracy at US$18 billion a year
• In Southeast Asia, as fish stocks decline, coastal
dwellers are turning to piracy to supplement their
incomes (source: Lily Kuo, qz.com)
• Terrorist groups have reportedly been planning to
use tankers as “floating bombs”
Organized By:
Leverage International (Consultants) Inc.
External Threats: Piracy and Terrorism
Southeast Asia Terror Groups with Maritime Capability
- Al Qaeda
- Jemaah Islamiyah
- Abu Sayyaf Group
- Liberation Tigers of Tamil Eelam – partnering with
ISIS?(Sources: Institute of Defence & Strategic Studies Singapore;
Prof. Hudson McLean, Lankaweb 16 March 2015)
Organized By:
Leverage International (Consultants) Inc.
Piracy Versus Terrorism
• Maritime “Common Piracy” - economical
objective by perpetrators driven by greed rather
than political motivations.
• Political piracy - politically oriented groups use
piratical tactics to finance their activities.
• Maritime terrorism and maritime insurgency -
have a political motivation, carried out by
organizations with political objectives.
Organized By:
Leverage International (Consultants) Inc.
Piracy Versus Terrorism
• International maritime terrorism (Al Qaeda & its
affiliates) has the aim and potential to harm
international security as well as international trade,
maritime insurgency (Abu Sayyaf Group in the
Philippines or the LTTE in Sri Lanka) has mostly
local geographical repercussions.
Organized By:
Leverage International (Consultants) Inc.
Piracy Versus Terrorism
• Economically oriented terrorism - politically
motivated attacks conducted by organizations
primarily interested in financial benefits with only a
marginal part of attacks amounting to maritime
violence.
(Source: Mr. Andreas Graf, PiraT-Working Papers on Maritime
Security Nr. 5, April 2011)
Organized By:
Leverage International (Consultants) Inc.
External Threats: Piracy and Terrorism
• Piracy and armed robberies against ships in
Philippine waters have increased by 27% to 14
from 11 from 2012 to 2013.
• In the Philippines, there are no significant attacks
against large vessels.
• Those engaged in fishing and interisland trade in
Southern Philippines, have been the perennial
victims of extortion and piracy. (source: Philippine Coast Guard)
Organized By:
Leverage International (Consultants) Inc.
External Threats: Piracy and Terrorism
• Of the 67 cases of maritime piracy recorded
across the country from 2009 to 2014, 13
persons died, 57 sea vessels were robbed, and
10 were seajacked.
• In 2013, five sea piracy incidents were reported
at the Manila South Harbor while there was one
in the Manila North Harbor.(source: Philippine Coast Guard)
Organized By:
Leverage International (Consultants) Inc.
External Threats
- Natural Disasters
- Effects of Climate Change
Organized By:
Leverage International (Consultants) Inc.
Maritime Security Cooperation
• Council for Security Cooperation in the Asia Pacific
(CSCAP)
• ASEAN Plan of Action to Combat Transnational
Crimes. Covers 8 areas: (a) trafficking of persons,
(b) illicit drugs trafficking, (c) money laundering, (d)
sea piracy, (e) terrorism, (f) smuggling of small
arms, (g) cyber crime, and (h) commercial crime.
• Regional Cooperation Agreement on Combating
Piracy and Armed Robbery against Ships in Asia
Organized By:
Leverage International (Consultants) Inc.
Maritime Security Cooperation
- International Ship & Port Facility Security Code
(ISPS)
- US CBP Customs Trade Partnership Against
Terrorism (US C-TPAT)
- Transported Asset Protection Association (TAPA)
Security Standards
- ISO 28000 – Supply Chain Security Management
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