NEWS DETAILS

Date: 22/10/2024

Explosive challenges for the global logistics industry
 
By Vittal Raj R., Founding Partner, Kumar & Raj; Director, Pristine Consulting Private Limited 
 
The recent pager explosions in Lebanon and Syria, which resulted in the tragic loss of a dozen lives and injured over 3,000 individuals, has opened a Pandora’s box for the global logistics industry. Early media reports indicate the use of Pentaerythritol Tetranitrate (PETN), a high-impact explosive that evades detection by conventional explosive detection techniques due to its low vaporisation rate and organic composition. Ironically, PETN—a powerful explosive discovered in the 1890s—has been utilised extensively during both World Wars and, more recently, by terrorist organisations in several catastrophic attacks.
 
Key challenges for the logistics industry
 
Complexity of modern global logistics industry: Today’s global logistics landscape is increasingly intricate, characterised by the evolution of diverse business models that integrate sea, air and surface cargo routes with multiple transhipments. This is further compounded by an unprecedented year-over-year increase in shipment volumes, a diverse array of materials (particularly the surge in emerging electronic and communication gadgets), the involvement of numerous intermediaries, inconsistent real-time tracking mechanisms, and the relentless pursuit of expedited transit times. These factors collectively create a highly competitive and challenging environment for logistics providers, where crushing of turnaround times and costs is the order for survival and success.
 
Resurgence of PETN and enhanced concealment techniques: The recent explosions have spotlighted PETN, an explosive not new to the industry but now attracting renewed attention from terrorist groups and smugglers. Advances in concealment methods allow PETN to be hidden within seemingly innocuous substances or objects, making every mobile, electronic and computing device susceptible to suspicion. This trend exacerbates the existing difficulties in detecting such explosives smuggled, concealed within objects other than those capable of communication.
 
Limitations of conventional screening technologies: Traditional screening technologies, such as X-ray imaging and Explosive Trace Detection (ETD), face significant challenges in identifying organic explosives like PETN, which exhibit low vaporisation rates and lack distinct shapes. Consequently, there is an urgent need for investment across the logistics chain in advanced detection technologies. Solutions such as X-ray Computed Tomography (CT), Ion Mobility Spectrometry (IMS), Pulsed Fast Neutron Analysis (PFNA) and molecular analyzers represent significant advancements in detecting organic explosives. However, these technologies often suffer from high false positive rates and low screening throughput, potentially causing delays at every transit point.
 
Complacency and governance deficiencies: The logistics industry’s response is further hindered by complacency, inadequate training and a lack of expertise in conducting efficient scans. Additionally, deficiencies in intelligence capabilities and governance structures exacerbate the vulnerability to explosive threats.
 
Call to action
 
The following could help address some of these significant challenges:
 
Policy review and enhancement: A comprehensive review of government as well as operator policies related to the technology, rigour and process of detection of explosive substances is imperative. This exercise should proactively involve international trade bodies, government agencies—particularly Customs authorities—logistics regulators and logistics operators. Updating and renewing government regulations and standards for explosive detection will ensure that all stakeholders uphold their responsibilities with due care and diligence.
 
Investment in advanced detection technologies:  Significant investments are required to deploy advanced detection technologies throughout the logistics chain. This includes securing tamper-proof locking mechanisms for likes of containers and implementing robust monitoring systems to enhance overall security.
 
Strengthening intelligence and risk assessment strategies: Stakeholders should bolster their strategies for intelligence gathering, continuous risk assessment, periodic Know Your Customer/Employee/Partner (KYC) processes, and comprehensive profiling of consignors, freight forwarders, carriers, shipping lines, warehouses, distribution centers, seaports, airports, and other intermediaries as well as materials. Leveraging artificial intelligence can provide substantial advantages in effectiveness, efficiency, accuracy and detail in gathering and acting upon intelligence.
 
Significant investments are required to deploy advanced detection technologies throughout the logistics chain. This includes securing tamper-proof locking mechanisms for likes of containers and implementing robust monitoring systems to enhance overall security
 
Establishment of robust intelligence units: The government and major operators across the logistics chain should establish dedicated intelligence units tasked with continuously monitoring related threats and exchange global and local intel on such threats. These units should work in close collaboration with government agencies, Customs and national security organisations to ensure proactive threat mitigation.
 
Comprehensive awareness and training programs: It is essential to implement robust training programs for boards, management teams, regulatory staff, customers, partners and all key stakeholders. Training should focus on understanding risks and implementing effective risk management measures for handling explosive materials.
 
Much of the above may appear to be a lot to get done, but given the brewing aggressive geo-political climate and spike of radical terrorism over recent past, these already have been overdue, else one significant incident could bear the potential to change the contours of the logistics environment.
 
(The views expressed by the author are personal.)