OVERVIEW
MANAGEMENT
PERFORMANCE
POSSIBILITIES
CAPITALS
ACTIVITIES
ACTORS
BURGESS
Supply Chain | ||
Burgess COMMENTARY The massive scale of each individual ship with thousands of containers on each ship is a massive logistical challenge. This has been managed using powerful digital technology, but this is not a perfect solution. Human ingenuity is also very powerful, and the scale means that a modest sized securty breach can still be huge in absolute financial terms ... perfect for crooks. Peter Burgess | ||
From the report 'Container Security: Combating the Rip-On Rip-Off technique and the Blockchain Technology' by Elena-Sofia Cesario
1. Introduction Due to the complex nature of international supply chains, it is no surprise that at any given time, there are numerous parties involved in the trade process. Each party has a unique role and a different set of responsibilities and liabilities, making for an intricate operational framework. This complexity and intricacy allow nefarious Organised Crime Groups (OCGs) to infiltrate the supply chain, elude security and ‘piggyback’ off legitimate trade routes. Container screening involves just 0.0005% of the overall containers arriving in seaports. Given the significant volumes, it is often challenging for authorities to notice if a container has been tampered with during its journey. Considering this low screening rate, one of the most commonly utilised modus operandi by the OCGs to benefit from legitimate trade and smuggle contraband is the ‘Rip-On/RipOff’ technique. In conjunction with corruption at seaports, this technique enables OGCs to use seaports such as the Port of Rotterdam to smuggle contraband into Europe. In the recent decade, we have observed a sharp increase in the volume of international maritime trade. Many experts argue that traditional paper-based systems are inefficient and vulnerable to exploitation by the OCGs. For instance, the documents and container seals are susceptible to forgery, and it is often hard to allocate individual liability given the numerous parties involved. Various stakeholders involved in the process have identified container traceability, container seal security, and an increasing rate of corruption amongst port workers as the most prominent challenges in the current framework. This report aims to provide a comprehensive overview of the ‘Rip-On/Rip-Off’ technique and how stakeholders could address the associated challenges. The report also highlights emerging technologies such as blockchain and its use within the traditional international maritime trade framework. Finally, the report addresses the importance of container seals in the trade process while highlighting the need for a more automatised operational framework.
| The text being discussed is available at | and Original article: Container-Security-Combating-the-Rip-On-Rip-Off-technique-and-the-Blockchain-Technology-By-Elena-Sofia-Cesario-2021.pdf |