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The attacks of September 11, 2001 heightened awareness about the vulnerability to terrorist attack of all modes of transportation. Port security has emerged as a significant part of the overall debate on homeland security.
Government leaders and security experts are worried that the maritime transportation system could be used by terrorists to smuggle personnel, weapons of mass destruction, or other dangerous materials into their countries. They are also concerned that ships in ports, particularly large commercial cargo ships or cruise ships, could be attacked by terrorists. Experts are concerned that a large-scale terrorist attack at a major port could not only cause local death and damage, but also paralyse global maritime commerce.
Importance of the Maritime System
Ships are the primary mode of transportation for world trade, carrying approximately 80% of the global trade by volume. The United States is the world's leading maritime trading nation, accounting for nearly 20% (measured in tons) of the annual world ocean-borne overseas trade. Ships carry more than 95% of the nation's non-North American trade by weight and 75% by value. Trade now accounts for 25% of US GDP, up from 11% in 1970. Over the next two decades, the total volume of domestic and international trade is expected to double.
Given the importance of maritime trade to the US and world economies, disruptions to that trade can have immediate and significant economic impacts. By one estimate, the cost to the US economy of port closures on the West Coast due to a labour-management dispute was approximately $1 billion per day for the first five days, rising sharply thereafter.
The container shipping system is designed for speed and efficiency. Transportation services are a critical component of the global, low-inventory (i.e., just-in-time) distribution model that many manufacturers have adopted. Most industries in the United States and the Western world use some imported components from overseas suppliers. By bringing parts to a plant just before they are needed for assembly, manufacturers can save money on warehouse space and inventory carrying costs. Transport efficiencies permit warehouse requirements to be minimised, and in turn lean inventories contribute to business productivity.
In view of this dependence of the United States and the global economy on a highly efficient maritime transportation system, many experts...