The cost of scanning 100 per cent of inbound containers (to prevent terrorists smuggling into the US lethal weapons) has been estimated at more than $500 per unit, which would have to be borne by the exporters, Exim News Service reported.
According to a confidential memo leaked to Lloyd’s List that summarised the results of a six-month pilot project conducted at the Port of Southampton and with "preliminary contributions from EU member-states," the European Commission (EC) concluded that "a simple calculation of total cost relative to the number of scanned US-bound containers gives an average cost/container that exceeds $500".
The Southampton trial involved the checking for radiation of 90,000 containers at the port gates. Another 5,500 US-bound containers were x-rayed for non-intrusive imaging of the container contents. The trial cost a staggering $18 million.
The report cited a letter from the EC to the US authorities calling the proposal a "unilateral" US law that is supposed to be in force by 2012.
"It is to be regretted that the US did not await the results of the pilot actions, including the European pilot in the port of Southampton... before pressing ahead with this legislation", the EC lamented.
One hundred per cent scanning "might even create a false sense of security", it was claimed. It could "undermine security by diverting scarce resources from other essential measures".
It was also "unilateral" and "extra-territorial" in that trading partners would be expected to bear the costs. "If it were pressed on with, it would tend to undermine the process of mutual recognition of US-EU security standards and controls."
The law would hit hard smaller ports as US-bound trade would flow towards larger ports equipped with the necessary scanners. Scanning boxes, which arrive by rail, barge and feeder vessels "would pose tough challenges" in the UK that typically delivers containers to the port by truck.
Scanning transhipment containers "is likely to lengthen the average waiting time of vessels significantly", the report claims.
"Preliminary feedback from large EU ports offers cost indications in excess of $300/ container for moving stacked containers to scanning stations."
The report further points out that increased waiting times and congestion would amount to "billions of dollars annually", all of which would be met by shippers and the transport industry.