CTPAT Customs Trade Partnership Against Terrorism

Abstract
This paper examines the role of the Customs Trade Partnership Against Terrorism (CTPAT) in the successful application of transportation management for businesses in the 21st century. A literature review was conducted for this paper using the University library; scholarly peer-reviewed articles were selected based on relevance and publication date (studies published within the past five years were deemed acceptable to obtain the best up-to-date information on the Partnership). The study found that CTPAT certification can help mitigate risks in shipping and the supply chain by requiring companies to obtain documentation that signals trustworthiness and the integrity of their lines, thus allowing for expedited modes of transportation to be implemented. In the age of terrorism, this precaution is both necessary and helpful in protecting cargo and supply chains as well as in managing logistics and easing congestion. The paper concludes that transportation managers should work towards obtaining CTPAT certification to facilitate international supply chain and transportation management.
Keywords: CTPAT transportation management, CTPAT supply chain management, CTPAT transportation shipping
Introduction
Transportation management is one of the most important aspects of a business’s operations: the flow of goods and services, the management of the supply chain, logistical decision-making, and security issues all come together under the purview of the transportation manager. In today’s world, security is more important than ever, what with the threat of global terrorism impacting countries around the world and thus impacting global supply chains (Sheffi, 2001). As Goldsby (2014) points out, transportation is sometimes “to blame for a company’s inability to properly serve customers” (p. 3), and so the concept of the Customs Trade Partnership Against Terrorism (CTPAT) is a rather basic one that gets right to the heart of the collaborative spirit in the global business industry to ensure that businesses stand together to address the threat of terror. CTPAT is a supply-chain security program that is completely voluntary: it focuses on supporting secure supply chains and is led by the U.S. Customs and Border Protection (CBP), which provides guidance and logistical support for the volunteer participants. After a little over a decade, what started out as a small group of seven large U.S. companies working together to secure their shipping networks and supply chains became an international effort to safeguard business transportation for more than 10,000 companies (Rasero & Piniella, 2015). This paper will provide a full analysis of CTPAT from a transportation management approach with a view of evaluating its successfulness in enabling companies to strengthen their transportation systems in the face of the dangerous realities of the 21st century.
Methodology
The method used to obtain information on this subject was to perform a literature review by conducting a keyword search using the University library and the keywords “CTPAT transportation management.” Articles were selected for review based on relevance as indicated from their titles and abstracts: all articles selected had the keywords in their studies and were published within the past 5 years. The purpose of this method was to obtain information that could provide an overview and understanding of the role that CTPAT plays in transportation management. The follow section discusses the sources obtained.
Literature Review
Yang and Hsu (2018) note that because of the rise of incidences of terrorism in the 21st century and the need to stabilize transportation modes and channels, “the development of multiple security initiatives to enhance security and resilience capability without affecting efficiency has become an important issue for multinational firms” (p. 220). Their assessment of adding security measures to one’s radar as a transportation manager can help to improve resilience in the industry and boost performance overall. Their method of data collection consisted of the distribution of questionnaires to multinational firms relying on transportation management for oversight of shipping and supply chains. Their findings revealed that the more integrated and collaborative the members of the industry are, the more improved the overall interaction and movement of goods becomes.
The findings of Yang and Hus (2018) thus correspond and align with Goldsby’s (2014) assertion that what happens in one part of the supply chain is bound to impact another part and have ramifications for the broader market as a whole: “When one level in the supply chain experiences delays and problems, it impacts the abilities of downstream members of the supply chain to serve their customers. For this reason, the larger economy is affected when transportation disruptions occur” (p. 5). Transportation managers thus play a very critical role in the maintenance and efficiency of the overall economy simply by conducting safe and secure practices with respect to the shipping of products. As they are all like custodians of the global economy, the CTPAT is a way for them to collectively take responsibility for their own networks and ensure the safe and secure transportation of goods across a multitude of regions.
Springer and Davidson (2015) conducted a review of the benefits of CTPAT and found that the Free and Secure Trade (FAST) program, which members of CTPAT are enabled to access, provides transportation managers with a number of advantages, such as “shorter waiting times at the Canada–U.S. border” and increased confidence in the security and integrity of their lines (p. 74). This is an important consideration from a transportation management point of view because the movement of goods in a timely manner is one of the top concerns for a transportation manager—and the other top concern is the safety and integrity of the line. CTPAT enables FAST to help transportation managers meet their goals.
There is also the benefit of using the CTPAT as a way of bolstering a company’s reputation for corporate social responsibility. The more socially responsible a company shows itself to be, the more likely it is to be successful in the industry as trust and integrity are two characteristics that transportation managers seek when developing relationships with firms in regions where they require transportation of goods in a fast but secure manner. Ramirez, Vélez-Zapata & Madero (2018) show that the CTPAT serves as a “normative pillar with an obligatory dimension” for businesses operating transportation in Central Mexico, where risks of violence and terror are particularly problematic (p. 4). What CTPAT allows these organizations to do is adopt informal security strategies using hired security forces that meet the CTPAT’s definition of security and facilitate the movement of trade through the region. The firms and their stakeholders that participate in the international Partnership benefit by way of a robust sense corporate responsibility, which in turn facilitates the development of relationships, trust and integrity throughout the region.
Results
The findings of this review show that CTPAT offers a range of substantial benefits for transportation managers: a) they can participate in the war against terror by aligning themselves with and cooperating in a voluntary collective that agrees to meet specific criteria for safety and security with respect to the transportation of goods through regions where the risk of terror is high (Ramirez et al., 2018); b) it reduces the amount of time that must be spent undergoing non-member Customs and Border Patrol inspections by giving members of the CTPAT a straight-to-the-head-of-the-line clearance that accelerates the overall shipping process and reduces delays and wait time at borders and security check points (Springer & Davidson, 2015); c) it places the onus of combating terrorism and securing shipping lines squarely on the stakeholders in the industry who stand to benefit most from better security and thus puts transportation managers in a better position to make demands and select carriers, modes and channels more appropriately (Yang & Hsu, 2018).
These findings show that the CTPAT is an ideal way for transportation managers to address the problem of terrorism in the 21st century: it brings shippers, carriers, businesses, and security forces together in one united effort to solve the problem of terrorism with regard to supply chain management and transportation routes. Consumers benefit by having goods brought to market in timely and efficient manner, with less risk of terrorism impacting them on their end. Business owners and investors benefit from the mitigate risk that is the main effect of the coordination and collaboration of the various entities involved in meeting CTPAT criteria for membership. Once CTPAT certification is obtained, carriers can reduce their wait times at borders and inspection points because—like the fast track program initiated by the TSA—these carriers and companies are already in possession of documents that show their operations have been thoroughly inspected ahead of time and up to rigorous standards of the CTPAT, which thus qualifies them for quicker mobility into and out countries that have a duty to protect their borders from possible transporters lacking integrity.
Transportation managers benefit from CTPAT in that they can select carriers and suppliers that have proven their integrity by becoming CTPAT members. This reduces the stress and pressure placed on the transportation manager to find adequate supply chain companies that can deliver speedily and safely. The CTPAT is thus a sound solution for the troubled times of the 21st century as it empowers businesses and managers to be proactive in the fight against instability in their systems.
Conclusion
Recommended membership of CTPAT should be a top priority for transportation managers seeking to develop relationships with suppliers and transporters. When selecting a transportation mode or channel, CTPAT certification can now act as the first set of criteria that has to be met in order for the transportation manager to select that company as a partner in the transportation of goods, for both inflows and outflows. The CTPAT provides a better assurance of safety for the line throughout a region based on the necessary components that a company must meet in order to be a member. The purpose is to provide stability, efficiency, speed and integrity to the transportation sector in the 21st century. It places the onus of ensuring security on the companies themselves and ensures that corporate social responsibility is adopted by those businesses that seek to have a place in the international transportation sector in the future. If they want to work with today’s transportation managers, they must abide by the rules of this voluntary partnership.
References
Goldsby, T. (2014). The Definitive Guide to Transportation: Principles,
Strategies, and Decisions for the Effective Flow of Goods and Services. Pearson.
Ramirez, J., Vélez-Zapata, C., & Madero, S. (2018). Ambidexterity strategies in
illegitimate institutional contexts: the role of informal institutions. Management Research: Journal of the Iberoamerican Academy of Management. https://doi.org/10.1108/MRJIAM-02-2018-0811
Rasero, F. C., & Piniella, F. (2015). Maritime Security: Towards a global
identification. Journal of Maritime Research, 12(1), 17-24.
Sheffi, Y. (2001). Supply chain management under the threat of international
terrorism. The International Journal of logistics management, 12(2), 1-11.
Springer, M. C., & Davidson, D. (2015). Research in Transportation Business &
Management. Research in Transportation Business & Management, 16, 74-83.
Yang, C. C., & Hsu, W. L. (2018). Evaluating the impact of security management
practices on resilience capability in maritime firms—a relational perspective. Transportation Research Part A: Policy and Practice, 110, 220-233.