Beware of insurance implications of non-compliance with Security 108

The security of air cargo has lagged behind stringent baggage and passenger security, according to Bob Garbett, MD of Professional Risk & Asset Management and chairman of the Business Aviation Association of Southern Africa (Baasa). “And, with 80% of air cargo worldwide landing up on passenger aircraft,” he told FTW, “this exposes a massive flaw in the armour of airline security.” It’s really only the imposition next month of the Part 108 security regulations for air cargo that stands to help fill that gap. “But,” said Garbett, “the twopace- forward, three-pace-back experience with Part 108 over the past number of years has, unfortunately, contributed to an apathy that now exists in certain quarters. “This has had the net effect of creating a wait-and-seemindset, rather than a pro-active approach.” The problem, as Garbett saw it, was that Part 108 had taken several years, and a great deal of time and input from the aviation industry and others, to reach the point where minister of transport, then Jeff Radebe, announced the deadline for introduction of these measures in SA was July 1. And it’s a deadline that you can’t get around. If air cargo does not comply with the regulations from this date – whether regional, domestic or international – it may not be carried on any aircraft, whether scheduled or air charter, from any SA airport. This provision also demands that SA-registered aircraft may also only carry cargo from outside SA which has complied with these regulations or their equivalent. But the “apathy” and “waitand- see” reaction still bothers Garbett. “It is almost a foregone conclusion that, unless there is ongoing and active stimulation of Part 108 measures, this potential complacency will set in,” he told FTW. However, he also noted that this would be balanced by the forwarding or courier agents having to appoint specifically trained “designated officials” who are responsible to the SA Civil Aviation Authority (SACAA) to ensure that the measures are implemented and are ongoing. “These designated officials,” Garbett added, “are also responsible for ensuring that the senders of cargo (consignors) implement and continue to apply the Part 108 security measures. The Civil Aviation Inspectorate, formed for this specific purpose, will also play a major role in the ongoing vigilance required.” There will also be pressures from the marine insurance industry – which covers all the cargo and aircraft insurance needs. “Liability insurance underwriters will certainly take a dim view of non compliance with these measures,” said Garbett, “which creates a real possibility of claims being repudiated. And we should all be aware that claims involving passenger aircraft could well run to hundreds of millions of US dollars. “The silver lining is that these measures will increase general logistics security and help to deter fraud.”