While highway carriers and importers are linked, importers are vulnerable to a higher level of risk because they commonly leverage several highway carriers which may have varying business practices and security standards.
For importers, this increased level of assurance in their supply chains enables and supports efficient strategies like just-in-time inventory management and maximized CAPEX utilization. For carriers, achieving CTPAT certification can be a major selling point for new customers who expect a high level of reliability from their partners. While highway carriers and importers are linked, importers are vulnerable to a higher level of risk because they commonly leverage several highway carriers with varying business practices and security standards. Since highway carriers are one of the most vital links in the importer supply chain, maintaining integrity of these third-party connections is critical to CTPAT compliance and a company’s overall operational security.
Reporting from industry groups shows that in 2021, 65% of cargo theft incidents occur while cargo is in transit overland, as opposed to 29% of incidents occurring onsite at a facility.
Leveraging Risk Assesements
Thorough risk assessment with particular emphasis on verifying compliance of logistics partners is crucial for identifying risk in advance.
Risk Assessment: Analyzing external threats against company procedures to identify vulnerabilities and procedures to be implemented or improved to reduce such risk. This involves ensuring issues identified through analysis and audits as vulnerabilities are thoroughly addressed.
Also See: CBP’S 5 Step Risk Assessment.
The key to building a successful Risk Assessment process is to ensure it is unique to your company’s business model and practices. Whether you’re working with one carrier or a hundred, our team is dedicated to eliminating the pain points associated with risk assessments. With years of experience conducting hundreds of CTPAT validations for every entity type, we’ve seen it all before and can help you avoid overwork, mistakes, and setbacks. Learn more.
PRO TIP: While restricting your highway carrier business partners to being CTPAT certified mitigates substantial risk, do not assume you can become complacent based on that premise. Even the best of security measures can be challenged in the highway carrier environment and CTPAT status can also be suspended or revoked due to administrative shortcomings. Be sure to monitor your business partners through the CTPAT Status Verification Interface (SVI).
The CT Strategies team of former CBP CTPAT Supply Chain Security Specialists (SCSS) and Directors help companies successfully navigate CBP’s CTPAT program. Using insights from over 80 years of combined CBP operational and policy knowledge, we leverage our first-hand CTPAT supply chain security experience and connections to current CBP leadership, so you can save time and money and get the most out of your CTPAT membership.