One-Hundred Percent Scanning of Port Containers: The Impact on Maritime Transport Chains

A major concern resulting from the imposition of enhanced security measures following the events of 9/11 and other terrorism has been the increasing costs of maritime transport. In July 2007 the United States Congress passed the Implementing Recommendations of the 9/11 Commission Act that requires the scanning of 100 per cent of US-bound containers at their last foreign port-of-call by the year 2012. In this paper the author develops analytical models of maritime transport chains for US-bound containers, in the hopes of understanding the potential, and likely, impact of this legislation. The primary question is whether implementation of the Act will change the status quo of maritime transport chains that are used by shipping lines and shippers that transport US-bound containerized cargo. Will they switch from direct-service to transhipment maritime transport chains? The conclusions show that the legislation will have a positive effect (in terms of increased container throughput of US-bound containers) on foreign transhipment container ports that are the last ports-of-call for US-bound containers, if scanning economies of scale exist.