Tough US-EU cargo screening causes headaches for HK airport, forwarders

HONG KONG's main air cargo handler at the city's international airport, Hong Kong Air Cargo Terminals Ltd (Hactl), has expressed concerns along with freight forwarders over a proposal by the US Transport Security Administration to ramp up its cargo screening programme to cover not only cargo carried on passenger aircraft by also on freighters.

The fears were voiced after a pilot scheme to screen cargo carried on passenger aircraft bound for the US became mandatory on December 12. So far, the programme has accounted for 25 per cent of Hactl's 500 tonnes per day X-ray screening capability, reports the South China Morning Post.

Said Hactl managing director Mark Whitehead: "Compliance with the new regulations has gone smoothly, and the situation is fully under control."

However, he warned: "Should the TSA requirement eventually be expanded to include cargo carried on freighters, that would certainly involve greater volumes and place more pressure on the airport's air cargo industry.

"Hactl is already attuned to this possibility and will be expanding its screening capability in anticipation."

Paul Tsui, the chairman of the Hong Kong Association of Freight Forwarding & Logistics, expects advance screening for US-bound cargo to be fully implemented by the middle of 2014, which will coincide with the introduction of tighter European rules governing air freight.

Adding to their woes is a plan under European Union regulation 859 that all air cargo shippers and forwarders be independently validated. There are already concerns in Hong Kong about whether the validation process will be a successful operation, given the high volume of cargo coming from South China for shipment out of Hong Kong's airport.

Suspect cargo for Europe will have to be X-rayed before loading. According to Dr Tsui, the double impact of the US and European measures could lead to "a tremendous increase" in the total volume of air freight requiring scanning. The airport handles about four million tonnes of cargo a year, and the US and Europe are major markets.

Said Cathay cargo director Nick Rhodes: "EU859 presents more of a Hong Kong-wide challenge, as it includes a requirement that known consignors should be independently validated, which is not presently the case under Hong Kong's regulated-agent regime."

Mr Rhodes added that the Civil Aviation Department "has put forward a proposal, but it has to be endorsed by all parties in Hong Kong. There are plenty of principles still to argue."