Two certainties exist about Washington in the summer that are undeniable. First, the stifling July heat and humidity affecting our nation’s capital are legendary and second, lawmakers traditionally work at a heated pace to pass legislation in time for the August Congressional recess during which most, if not all, leave town for cooler climes.
Part of the frenetic activity this past July included an important hearing in which forwarders were invited to testify about their views and suggestions on the current threats to air cargo security. The session included the passing of homeland security legislation by the U.S. House of Representatives that could bring two significant initiatives affecting forwarders and their transportation partners into law. Each provides an additional layer of safety for an industry dependent on layers to ensure security.
Forwarders and their airline partners have long been supportive of adding tools to the security toolbox. The use of privately run, third-party companies that train canines for air cargo screening is a relatively inexpensive tool that forwarders have long advocated for, and we are encouraged that the passing of the DHS Authorization Act of 2017 signaled that normal use of these highly reliable animals will finally become a reality. The Transportation Security Administration (TSA) reports that efforts to begin the program are under way, thanks to a US$3.4 million appropriation push from Congress earlier this year. However, the legislation needs the approval of the U.S. Senate before becoming law, and if passed, Congress must ensure the TSA receives more necessary oversight funding to manage the program and hold the agency accountable for its swift implementation.
Another vital part of the recently passed legislation is a mandate for the Air Cargo Advanced Screening program (ACAS). The program was created as a response to the attempted terrorist bombings of all-cargo aircraft in October 2010 and has been in a voluntary pilot since the latter part of that year. First developed with express carriers, ACAS has expanded to include passenger air carriers, all-cargo carriers and freight forwarders, and now includes 20 fully operational members, covering 80 percent of the air cargo shipments entering the United States. While we wish that more forwarders had joined the pilot, the ACAS project has been highly successful and has screened more than 440 million shipments without detecting any imminent threats to aviation.
Businesses know that one of the keys to success is employee retention, and the House, despite having passed this significant legislation, now needs to focus on the relatively short term of the TSA administrator. During a recent hearing in which the Airforwarders Association testified, Cargo Airline Association chief Steve Alterman suggested that one of the major impediments to positive change within TSA is instability at the top of the organization. After two administrators and three acting administrators came and went, the new TSA administrator, David Pekoskie, confirmed just last month, is now the sixth head of the agency in just the last three years.
Alterman said, and forwarders agree, that to provide stability and allow the administrator the time to implement any necessary changes, Pekoskie’s position should include a fixed five-year term, like that currently held by the administrator of the Federal Aviation Administration. Such an action would go a long way to providing stability needed to accomplish the critical objectives of the agency.
During the hearing before the House Committee on Homeland Security Transportation Security Subcommittee, the Airforwarders Association delivered several important messages to Congress. First, that consistent interpretation of regulations from TSA inspectors inspecting our facilities is essential. That is why we urge Administrator Pekoskie to move the inspectors under the policy division at TSA.
Many U.S. forwarders also have voice concern that, under the new legislation, TSA will no longer be providing training curriculum. As of this writing, we are working with the agency to reconsider its mandate, because the absence of this standardized educational tool will likely lead to stakeholder confusion and misinterpretation of vital security elements inherent in the program.
During the hearing, we also discussed the need for a revamping of the Known Shipper program. This security layer traces its origin to the Aviation Transportation Security Act. In 2001, e-commerce was a nascent industry. Per the Census Department, e-commerce had almost $500 billion of U.S. retail sales over the past year. We are not advocating for the elimination of Known Shipper, but we firmly believe that the Known Shipper program needs to be reframed to reflect today’s e-commerce reality.
Finally, the flying of passengers and cargo shares the commonality that each must get from origin to destination, but that is where the similarity ends. TSA knows the two are distinct, yet the agency closed its cargo division years ago. Flying cargo has its complexities, including different business models, handling requirements and security considerations. We hope Congress and the administration agree and re-establish airfreight’s presence within TSA.