Manufacturers Study Effects of Security Measures on Supply Chains

With the Coast Guard getting ready to enforce the Maritime Transportation Security Act of 2002 (MTSA) as of July 1, 2004, members of the Manufacturers Alliance are asking each other whether there will be any disruption of in-bound supply chains. The Manufacturers Alliance is an executive development and business research organization serving the needs of senior management. Activities range from management and policy research to the operation of Executive Councils and Conferences for executives in nearly every management discipline.

The requirements of MTSA align with the security requirements in the Safety of Life at Sea (SOLAS) amendments and International Ship and Port Security (ISPS) Code. These regulations require ships and terminals to adopt specific security safeguards at varying threat conditions. The USCG approves U.S. terminals and ships, and an appropriate national authority approves the security plans for overseas terminals and ships. The Manufacturing Alliance is hoping that compliance, which is the responsibility of ports and vessel operators, will be sufficient to avoid problems for its members’ supply chains.

Rockwell Automation discussed these concerns with the Menlo Ocean, BAX Ocean and Nippon Ocean groups. None of these operators anticipates delays from this change.
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