The impact of port and trade security initiatives on maritime supply-chain management

The fundamental objective of the Container Security Initiative (CSI) is to engage both so-called 'mega-ports' (ports sending the highest volume of ocean going container traffic into the US) and the national governments where these ports are located in a way that will facilitate the pre-screening of outbound containers destined to the US. The emerging issue of security as a key factor in global supply chains can be perceived as inconsistent with the objective of facilitating international trade (Dulbecco and Laporte, 2003). However, this perception does not stand up to analysis. Security is an evident part of the mainstream supply-chain paradigm while security can also become a driver for trade facilitation. The purpose of this paper is therefore to discuss the impact of the US CSI on maritime supply chains. The first section will mostly be related to the issue of security and supply chains while the second section will investigate CSI and its impact while exploring some of the financing implications of the security initiative.