Discuss the Maritime Security Act
Discuss OECD: Security in Maritime Transport
How do we balance maritime risk factors with economic impact?
TLMT605 Week 8: Maritime Security
The terrorist attacks of 2001 were a major turning point to the management of maritime security in the United States. Since then, maritime security has been considered a crucial element in the maritime community in the country, leading to the development of a Maritime Security Act. Despite the Act facilitating security in maritime transport, there still exists an imbalance between maritime risk factors and economic impact, which can be offset through operational efficiency.
The Maritime Security Act was enacted by the United States Congress to address security issues in the country’s waterways. The Act tasks Federal Maritime Security Coordinators with planning, preventing, and preparing for maritime security issues (Hardy, n.d.). Overall, the maritime security Act is a regulation that protects the U.S. against threats to its water transport, cargo, and ports.
Apart from taking a personal initiative to enhance maritime security, the United States has been working with other OECD countries to minimize threats against ports and enhance commerce. In a past report, the OECD averred that measures to counter terrorist attacks would require at least USD 1.3 billion (“OECD,” n.d.). In particular, this amount is invested in establishing emergency security measures to combat insecurity in the ports, such as installing alarm systems for vessels and purchasing pre-screening vessels, with the long-term goal of facilitating global commerce.
Despite OECD being at the frontline to combat maritime insecurity, there remains an imbalance between maritime risk factors and associated economic impact. For instance, a report issued by UNECE revealed that a single terrorist attack on maritime transport could have an impact similar to indirect disruption in global commerce. To balance maritime risk factors and economic impact, logistics companies can adopt operational efficiency (Cho et al., 2018). In particular, companies can increase their inventory holding to lower the effect of risk factors on the value chain in the event of a maritime risk factor.
“Price of increased maritime security is much lower than potential cost of a major terror attack” (N.d.). OECD. Retrieved from https://www.oecd.org/newsroom/priceofincreasedmaritimesecurityismuchlowerthanpotentialcostofamajorterrorattack.htm
Cho, H., Lee, J., & Moon, H. (2018). Maritime risk in seaport operation: A cross-country empirical analysis with theoretical foundations. The Asian Journal of Shipping and Logistics, 34(3), 240-247. https://doi.org/10.1016/j.ajsl.2018.09.010
Hardy, S. (N.d.). Maritime security: A brief overview. Homeland Security Digital Library. Retrieved from https://www.hsdl.org/c/