Cargo Security Management Issues

Cargo Security Management: How Digitization Can Help Safeguard the Shipping
Abstract
This paper examines how digitization can help safeguard the shipping industry by providing security monitoring of cargo, communications for shipping vessels, better surveillance for ports, and better protection through a number of technologies made possible by digitization services. Relevant literature is examined and perspectives on digitization are compared and contrasted to reveal strengths and weaknesses of the adoption of digitization in cargo security management. The paper concludes with a recommendation on whether digitization should be implemented in the industry or avoided because of costs to updating infrastructure.
Introduction
In the field of cargo security management, technology plays a pivotal role, not only in how shipping is managed but also in how far risk is mitigated and security established through systems-wide control mechanisms. To help protect cargo and supply chains, digitization has been shown to be an effective approach that can allow businesses and stakeholders to more effectively monitor the movement of goods and inspect cargo to ensure safety and reduce the threat of terroristic activity gaining a foothold in the movement of cargo (Fruth & Teuteberg, 2017). However, not all ports are created equally and some are more advanced in terms of providing digitization services to better effect the security of cargo. This paper will compare and contrast the issues surrounding this topic of security through digitization as a way to combat terrorism in cargo security management.
Literature Review
As Fruth and Teuteberg (2017) point out, the health of the global economical is critically linked to the safety of the world’s ports and the protection of the cargo that goes in and out of those ports. Over the past two and a half decades, cargo traffic has grown by approximately 10% year over year and more and more ships have grown in size to reflect the growth in shipping. Because of the sheer size and capacity of cargo supplies in today’s day and age, it stands to reason that digitization could help provide cargo security managers with the type of Big Data that can be used to better manage cargo-related logistics (Fruth & Teuteberg, 2017). Digitization of processes can better ensure “efficiency, safety and energy saving” (Fruth & Teuteberg, 2017), but there are also risks in handling Big Data, as well—such as the threat of cyber attack, cyber hack, and Big Data being sold or leaked to third parties. Rahman, Saifullah and Dhaka (2016) show that “demand pressure for a digitalized commercial environment” is growing in the cargo security management field and that a globalized world in a technologically-advanced day and age essentially insists that digitization be more thoroughly incorporated into cargo management services at ports around the world (p. 267).
Digitization can help to combat terrorist threats in cargo security management by linking ports as well. Helig Schwarze and Vob (2017) have shown that “as actors in world-wide supply chains, seaports are particularly affected by technological change,” which means they should respond to technological change in a uniform manner so that security features in place at one port are in place at another. Yet digitization is also needed in order to ensure that cargo shippers can remain strong within an industry shifting towards digitization. As Helig et al. (2017) note, “due to the high requirements in the logistics sector, e.g., regarding costs, efficiency, security, and sustainability, digital innovation is essential to stay competitive” (p. 1341). In short, digitization is here to stay as a result of the technological revolution of the Information Age. If it is not incorporated into a cargo security management policy, the supply chain overseen will be weakened as a result.
Implementing an effective digitization strategy can be complicated, however—and costly. For that reason, it is important that stakeholders band together to cover costs so that a uniform approach can be conducted. Ahokas, Kiiski, Malmsten and Ojala (2017) state that there are numerous ways that states and non-government operators alike can more effectively manage cargo security: The first way they point out is that managers can “commercialize their own cyberskills and cooperate with national or other non-governmental operators” (p. 11). This means that by working together with various other stakeholders in the supply chain, a more comprehensive safeguard of cargo can be accomplished. The second way the researchers point out is that managers can “form different alliances, for instance with national authorities that can offer them cyberskills” (Ahokas et al., 2017, p. 11). By forming alliances, cargo security managers can better effect a unified front against the threat of terrorism as they work to make sure that cargo is at all times safely being monitored, tracked, and overseen.
Ahokas et al. (2017) identify the risks inherent in using digitization tools, as Fruth and Teuteberg (2017) do, but they argue that “even though cyberspace can be used for malicious operations, it has established a platform for new innovations, such as digitalization, virtualization and automation. Thanks to these innovations, organizations have been able to cute various intermediaries from their production and service chains” (Ahokas et al., 2017, p. 11). By doing so, costs can be saved and these savings can be invested in the digitalized infrastructure needed to safeguard cargo. That infrastructure can be manifested in a variety of forms—including in the use of tracking technologies, surveillance systems, sensors, wireless tech, mobile equipment, drones, 3D printing, and analytics. As Heilig et al. (2017) note, these technologies represent a valuable way to help ensure that cargo is shipped on time, that security is guaranteed, that port capacity is maximized, the process efficiency is supported, and that costs are reduced for cargo operators, port operators, and shipping clients. In fact, Heilig et al (2017) show that industry leaders have more and more turned to implement digitization simply to better serve their clients.
Thus, in spite of the costs associated with upgrading infrastructures to include digitization technology, the savings and security that this technology can provide can be worth it in the long run. Plus, the fact that digitization is not going away anytime soon makes this technology more necessary than ever for businesses that want to stay competitive. For cargo security managers, therefore, digitization is a tool that will not only help them to protect cargo but also a tool that will help them to attract customers who want guarantees that the best efforts will be made to ensure their shipments are safe and sound from port to port.
Most Important Aspects of Digitization in Cargo Security Management
The most important aspects of digitization in cargo security management are the technology’s ability to enable managers complete control over shipments from point A to point B. Through constant monitoring of cargo and through constant, round the clock surveillance of ports, cargo security managers give themselves a 365 degrees, 24-7 view of everything they need to see in order to know where cargo is at all times, who is coming into contact with it, whether threats are approaching, and who has completed or conducted inspections.
One of the problems faced by digitization implementation, however, is that international standardization of such technology is well behind the curve. Although the International Maritime Organization (IMO) supports the implementation of electronic data exchange among ships and from land to ship, “to improve the efficiency, safety, and data security of navigation and communication” (Fruth & Teuteberg, 2017), there has been little done by the IMO to make digitization a reality. Indeed, the IMO is limited in terms of standardization because those nations that align themselves with IMO standards and recommendations are still responsible for implementing policy change within their respective realms—and some states do not take the initiative (often because of lack of funds for investment and lack of structural framework) to do so. For that reason, managers who may want to adopt digitization will still have to deal with ports of call where such technology has not been adopted and where security issues are still unaddressed. Meier (2013) states that “digitisation is much faster than international standardization process can be. [Yet] shipping industry in ports are far behind. The ports are the interfaces in the middle of the supply chain” (p. 21). As interfaces, they should all be appropriately uniform so that shipping standards are applied in the same way from one point of the earth to the other. This is where the international community must come into play to work together to achieve this aim—yet the international community lags behind the technological advancements that have arrived and that customers want to see put in place in order to better protect their traffic. Meier (2013) finds that part of the problem is related to the fact that there is a lack of vision among some industry players which prevents the whole from being protected. He provides an example of the way in which digitization can help the cargo security manager with a macro vision of how a shipping company might use it:
For example, in Busan we share data of liner services and also storage and port services under one web covering. When someone in Hamburg is looking for special service in Busan, you can go in to the Hamburg interface, you can ask for the services in the port of Hamburg, heavy materials for example, who can handle that, who can ship that. On the other hand, you can see who can handle that in Busan and who would be the last mile logistics company for your products in Busan and it is also the other way round. So we not just break down concepts and visions, and for us it is always important that we send out and show some concrete and pragmatic examples that we already share.
In other words, digitization fosters better communication, which facilitates better security within a single shipping line where coverage is provided. Digitization can also be used to help firms share important data and knowledge with partners so that all stakeholders can collaborate in finding solutions to cargo issues.
Regardless of whether digitization is embraced or not by few or by many, the reality is that as the years advance and as new ships and ports are built and new security protocols come down the line, digitization will be part of their plans and designs. Everything that is created new in the Digital Age is created with an eye towards how digitization can be effectively utilized to serve clients, to protect data and cargo, and to streamline services. The end result of such implementation is clear, as Fruth and Teuteberg (2017) show—one need only imagine the type of industry in which digitization is implemented: “all terminal vehicles, machines and devices that are involved in the transportation, loading and unloading of goods are interconnected and communicate with each other, which is enabled by means of suitable information, communication and automation technologies.” This type of interconnectivity not only protects cargo it facilitates the movement of cargo and helps shipping operations to be conducted more smoothly and efficiently. More efficient movement can help keep shipping lanes open, which is especially helpful considering that shipping has been on the rise year over year for decades.
Conclusion
Digitization should be recommended in the cargo security management field in spite of the potential costs associated with updating existing infrastructure and incorporating new technology into existing frameworks. The reason for this recommendation is that all industries are steadily moving towards digitization as it is a technological advancement that has changed the nature of business and communications. The expected security benefits of digitization will be part of the cargo industry for years to come, though there are also risks that arise with the implementation of digitization: hacking can occur, information can be stolen, and data that should remain private can be sold or leaked to third parties. Nonetheless, as with any advancement there are risks and digitization should not avoided either for the risks associated with it or for the costs that will come with updating infrastructure. The benefits of digitization far outweigh the drawbacks.

References
Ahokas, J., Kiiski, T., Malmsten, J., & Ojala, L. (2017). Cybersecurity in ports: a
conceptual approach. In Proceedings of the Hamburg International Conference of Logistics (HICL)(pp. 343-359).
Fruth, M., & Teuteberg, F. (2017). Digitization in maritime logistics—What is there and
what is missing?. Cogent Business & Management, 4(1), 1411066.
Heilig, L., Schwarze, S. & Vob, S. (2017) An analysis of digital transformation in the history and future of modern ports. Proceedings of the 50th Hawaii International Conference on System Sciences, 1341-1350.
Meier, J. (2013) Interview with Mr. Jens Meier. Shippers’ Journal Retrieved from
http://www.bvl.de/files/429/883/Shippers_Journal_Interview_Interview_with_Mr._Jens_Meier.pdf
Rahman, M., Saifullah, A. Z. A., & Dhaka, B. (2016). The effectiveness of container
inspection systems (CIS) on ports management in Bangladesh. International Journal of Engineering and Management Research (IJEMR), 6(5), 267-272.