Balancing Risk And Cost
The STAT Trade Times|December 2017

Regulating transport of dangerous goods by air is about striking a balance between risk and cost. IATA has been at the forefront of setting standards and providing training to the industry with the aim of reducing risk.

Reji John
Balancing Risk And Cost

Hoverboards, or the self-balancing scooters, were the most wanted Christmas and New Year gift item during the festive seasons in 2015. They became one of the hottest news stories of the holiday season then not just because of their popularity but also because many of them caught fire while in use.

Airlines across the world decided not to take any chances. They banned hoverboards on passenger flights, and the US Postal Service stopped shipping hoverboards by air as well. Online retail shops either temporarily suspended sales or stopped selling hoverboards at all.

It was found that there was no single reason why these hoverboards were exploding, and there was no sure-fire way to avoid potential catastrophe. When someone looked at the brands of hoverboards available in the market place then, there was no specific brand to choose from that guarantees a product won't explode. A majority of them came from factories in China.

One of the biggest threats to air cargo security is coming from the proliferation of e-commerce that allows shippers to ship goods from anywhere in the world. Unlike the traditional air cargo supply chain, where the shipper is much more known and has an established relationship with the rest of the stakeholders in the logistics value chain, in the e-commerce era, the shipper could largely remain hidden and unidentified. This is causing a huge security threat to the airline industry which regularly transports huge quantities of personal electronic devices (PEd) manufactured around the world, particularly China, which does not follow stringent standards.

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