Air Cargo Working Group Update

1
Air Cargo Working Group Update

• Aviation Security Advisory Committee Meeting
• May 3rd, 2006

2
Weve Expanded Our Scope

• Received approval at the last ASAC meeting to
  expand our scope from the Freight Assessment
  System (FAS) to include other Air Cargo
  initiatives
• Changed our name to the ASAC Air Cargo Working
  Group
• Why expand the scope?
• FAS is only one of many risk-based, layered
  countermeasures facilitated by TSA
• Ability to focus on a broader set of initiatives
  allows the Working Group to better advise the
  strategic direction and industry interaction of
  all countermeasures
• Allows the Working Group to advise on both
  near-term and long-term initiatives and
  countermeasures

3
Some Near Term Initiatives

• Security Programs
• TSA will soon roll-out seven completely revised
  standard security programs, which will implement
  regulatory changes for the air carriers
  (passenger and all-cargo) and indirect air
  carriers.
• To be released for industry comment in
  conjunction with publication of the Final Rule.
• Security Seals Pilot
• Planning to test multiple types of tamper evident
  security seals on a wide variety of air cargo
  during a pilot at four airports
• John F. Kennedy International
• Chicago OHare International
• Portland International (Oregon)
• Ronald Reagan Washington National
• Participants are very much on board and willing
  to commit time and resources to the pilot
  indirect air carriers and air carriers have also
  shown great willingness to support the pilot with
  resources and time.

4
Some Near Term Initiatives (cont)

• Proactive Cargo Security Operations
• Focuses on utilizing current TSA security
  resources more effectively to increase security
  at cargo facilities and other key portions of the
  aircraft operational area.
• Aims to reduce the predictability of regulatory
  compliance inspections.
• Piloting at three airports in May 2006 and
  capturing key performance metrics to assess
  results.
• Active Industry Engagement to Improve Security
  Threat Awareness
• Develop awareness campaigns that increase air
  cargo supply chain domain awareness, focus on
  critical threats and vulnerabilities, and better
  leverage industry resources to further mitigate
  risk.
• Target audience is the air cargo industry.
• Campaign launch targeted for June 2006.
• Promoting Air Cargo Security
• Determine key strategies and activities that
  increase awareness of Air Cargos security
  accomplishments to external audiences.
• Examples include briefings to Congressional
  stakeholders, press releases and publications in
  trade magazines.

5
Freight Assessment Overview

• The Freight Assessment System (FAS) is a program
  to identify elevated risk air cargo through
  pre-screening
• Eliminates reliance on random selection of cargo
  for screening.
• Directs limited resources to the cargo that poses
  the highest risk.
• Current Phase FAS Proof of Concept (POC)
• Tests the feasibility of the original FAS concept
  of operations in a non-operational environment.
• Acts as a testing ground for data quality
  consistency, risk assignment to shipments, and
  expected impact on industry.
• Answers the question, Will FAS work from a risk
  analysis, data acceptance and impact on industry
  standpoint?

6
FAS Proof of Concept Overview
Hypotheses
We are here
Recommendations
Recommendations
Targeted Field Testing
Iteration 3
Data Analysis
Process Assessment
Risk Assessment
Proof of Concept Snapshot
Risk
Process
Data

• Data received from the following industry
  participants
• Team WorldWide
• DHL Danzas
• Continental Airlines
• American Airlines
• Eagle Global Logistics
• Air Waybill data elements requested (based on
  current IATA standard) 420
• Data processed 1.8 million AWBs

• Risk Model currently incorporates data from
  twelve (12) public, government, and industry
  data sources. Model incorporates over 100
  business rules to identify elevated risk cargo
  based on current security vulnerabilities
  and threat vectors
• Air waybills scored (using SAS data
  analytical software) from a representative
  sample across industry participants

• Three (3) types of simulations have been
  developed utilizing Arena software from Rockwell
  Automation
• Global FAS Simulation
• IAH Site-specific FAS Simulation
• Holistic TSA Inspection Process Simulation
• Simulation inputs used from time and motion
  studies, air waybill timestamps, and TSA
  benchmarks

7
Proof of Concept Preliminary Findings

• The proof of concept suggests that the basic FAS
  concept is viable, with further analysis required
  to confirm operational details.
• The FAS risk model succeeds in differentiating
  risk among shipments based on known
  vulnerabilities and current list of threat
  scenarios. Ongoing refinement will be required to
  optimize rules and parameters.
• A relatively low level of effort is anticipated
  to standardize "company" air waybill (AWB) data
  across industry.
• A significant level of effort is anticipated to
  standardize commodity and other shipment-level
  AWB data across industry.
• A shipment can be tracked from freight forwarder
  to air carrier, but House AWB to Master AWB data
  consistency verifications will result in a higher
  inspection rate than originally anticipated.

8
Proof of Concept Preliminary Findings (cont)

• The existing risk rules and the data from
  industry result in an initial emphasis on entity
  profiling (e.g. financial and criminal history,
  regulatory compliance history, certification
  history) and expected shipping behavior (e.g.
  shipping volumes, shipment contents), and transit
  characteristics (e.g. geography, timing). These
  elements are emphasized more heavily in the
  current model than shipment and
  threat/intelligence components.
• FAS would drive significant business process
  (e.g., data entry timing) and technology changes
  across industry, but can do so with minimal
  impact on commerce flow if optimized with other
  cargo security countermeasures.

9
Next Steps

• Complete FAS Iteration 3
• Expected to be completed on May 24th
• Focus is on advanced targeting techniques and
  in-depth data and statistical analysis
• Complete Proof of Concept by end of June
• Evaluate results (TSA staff and ASAC Air Cargo
  Working Group)
• Develop recommendations
• Determine path forward (TSA senior leadership)