In the current context, risk minimization is a latent issue in the public and private sectors. Each one, from its place, generates actions to mitigate it in order to achieve its objectives safely and efficiently, but what are these risks about? Personally, I understand that it is necessary to improve resilience and efficiency in global supply chains to counteract the crises we face. By cushioning these risks, we can reduce the impact on companies linked to foreign trade, and be better prepared for the changing scenarios that may arise.
Companies today are exposed to certain threats in the supply chain in which they may participate. These threats are usually linked to illegal activities, internal vulnerabilities of the organization and/or external vulnerabilities linked to its direct and indirect business partners.
The identification of these risks must, in turn, allow for the establishment of prevention measures and control actions appropriate for each identified risk and determine the evaluation of their effectiveness.
There are responsibilities that are transversal throughout the life cycle of a shipment of goods in containers. A key element is the relationship between the parties when changes are made in the custody or possession of the container. This does not reduce or remove the responsibility of the carrier at the time of loading and sealing the container.
Each party in possession of the container has security responsibilities while the cargo is entrusted to them, whether at rest at a node or while moving between nodes.
Upon receipt of the container, the consignee or deconveyor inspects the seal and notes any discrepancies in the documentation. The consignee unloads the container and verifies the count and condition of the cargo against the documentation. If there is a shortage, damage, or an excess discrepancy, it will be considered for the purposes of making an appropriate claim or executing insurance. If there is an anomaly involving narcotics, contraband, stowaways, or suspicious materials, the consignee must inform customs or other law enforcement agency.
In other words, these responsibilities must include: knowing the companies they work with, protecting assets against manipulation, theft and damage, and not least, in the event of detecting anomalies, providing appropriate information to government authorities.
In order to comply with the above, companies have begun to film the loading process, others have also opted for dog services to participate in the container loading process and also the use of portable scanners. It is important to clarify that not all companies have this type of possibility, since it requires a series of resources that increase costs excessively.
There are other alternatives to companies which favor the security of those involved in their supply chain, such as certification in ISO 28000 standards about "“Supply Chain Security Management Systems”. This certification covers goods, infrastructure, equipment and means of transport, and is applicable to all sizes of organisations, from small to multinational, in manufacturing, services, storage or transport at any stage of the company's own production or supply chain.
Risks in the current context
Geopolitical uncertainty and tensions between countries, such as in the Middle East, can affect supply chains and create risks to market stability, so it is important to be aware of the current situation and how it can impact the company's business.
This year we have experienced the conflict between the State of Israel and Hamas in the Middle East, which has had a very important effect on the flow of international cargo and, in turn, the Houthi missile attack on ships in the Red Sea, which has highlighted the extent to which geopolitical events are a key determinant in the development of trade between companies at a global level. These conflicts unleash the ability of companies to pivot, diversify their suppliers, and also how they can cope with the results of these conflicts, such as the feared increase in freight rates, delays in transport and also the shortage of free containers.
The increase in rates has caused purchases to be made earlier, thus bringing forward the demand for the transport of goods in the midst of a crisis. This peak in demand for products was also due to other factors such as seasonal events, for example the start of school in the northern hemisphere, Black Friday, Cyber Monday and the holidays (1). Logistics planning plays a key role in this, i.e. having enough storage to accommodate this increase in inventory a few months earlier than expected; good coordination with logistics partners and designing a plan that takes into account the fluctuation in demand in the region in which it operates.
But is this crisis long-standing? This crisis has been gradually brewing for several years since the COVID-19 pandemic, which interrupted global trade. This caused a deep risk at the logistical level, where delays in transport and strikes at ports affected delivery, thus causing an increase in the prices of goods, given that in many cases these costs are passed on to the end customer.
Commerce has changed, the way the end consumer purchases has changed, and this has been going on for quite some time now. In times of booming e-commerce, companies must be protected against a possible cyber attack, given that the sensitive information they handle regarding personal data of customers and their commercial operations can be subject to abuse.
Two latent factors to take into account: Sustainability and Social Responsibility
Consumers and regulators are increasingly demanding sustainable practices. Companies must manage the risks associated with sustainability and ensure that their operations do not harm the environment or violate human rights. Despite the worldwide awareness that companies have an interest and commitment to acting sustainably, there is still a perception that they do not contribute to global sustainability, or at least not as much as expected (2).
What happens at the customs level?
In this area, securing the international trade supply chain is only one step in the overall process of strengthening and preparing customs administrations for global trade. In this regard, to strengthen and go beyond existing programs and practices, countries have adopted what is called the “SAFE Framework.” The SAFE Framework sets out principles and standards and presents them for adoption as a minimum threshold of what WCO members should do.
The SAFE Framework consists of five core elements. First, it harmonizes progress on electronic cargo information requirements on inbound, outbound and transit shipments. Second, each country that joins the SAFE Framework commits to employ a consistent risk management approach to address security threats. Third, it requires that at a reasonable cost upon request of the receiving nation, based on a comparable risk selection methodology, the Customs administration of the country of origin will conduct an exit inspection of high-risk cargo and/or conveyances, preferably using non-intrusive screening equipment such as large-scale X-ray machines. Fourth, the SAFE Framework suggests benefits that Customs will provide to companies that meet minimum supply chain security standards and best practices. Fifth, it promotes close cooperation with other government bodies – agencies representing different regulatory areas – in order to keep societies safe and secure, while facilitating the movement of goods.
Since 2005, the Framework has been periodically updated to effectively address new developments in the supply chain, with its latest revision being in 2021 (3).
In the case of Uruguay, cooperation between Customs and other government agencies is a key factor in distinguishing risks of different magnitudes, actions that also go hand in hand with the effective monitoring of the movement of goods in real time.
Non-intrusive inspection is extremely necessary to be able to effectively carry out control work at the different entry and exit points in the country. In this regard, in Uruguay, as of October 2 of this year, three new scanners are operational at the port of Montevideo. These new tools also strengthen the control capabilities in customs matters where they are also “It provides staff with the ability to analyze and interpret images, thus establishing a milestone in the fight against cargo contamination (4).”
The new cargo and container scanner service can operate both in portal mode (the vehicle to be inspected moves through the inspection tunnel without stopping) and in mobile mode (the vehicle to be inspected remains stopped and the scanner moves to carry out the inspection). Two of the scanners will operate permanently in the Port of Montevideo, the third will operate both in the Port and on an itinerant basis throughout the national territory in accordance with the control strategy defined by the country's authorities.
International trade is one of the driving forces of today's global economy, so companies and countries must face numerous scenarios where risk is latent, which can impact costs and profitability, and therefore it is vital to have strategies to mitigate them. These strategies must also consider a variety of factors. Geopolitical uncertainty, changing regulations, logistical risks, economic fluctuations, which are perhaps the most notable challenges and of great impact for the private and public sectors that represent the driving force of innovation.
In order to implement policies that are efficient in mitigating these risks, it is crucial to have government will, international cooperation and, fundamentally, joint work between public and private actors. Based on this synergy, the creation of strategies that can benefit everyone would not only improve the competitiveness of companies, but would also contribute to economic growth and job creation.
- Prepared by the authors based on information contained in https://www.linkedin.com/pulse/how-to-be-more-efficient-in-the-peak-season-3-grupo-ras-3deof/?trackingId=b%3FSZbDWdRJuFIoHm1JqOiQ%2024D%6D
- Own elaboration from “Project documents. Social sustainability in international trade. Instruments and practices used by producers and companies". Author: Ximena Olmos. (CEPAL, 2019). C-The incorporation of social aspects in the strategy of companies. Page 17."
- Source: https://www.wbasco.org/system/files/documentos/Marco_Normas_SAFE_OMA.pdf
- https://aduanas.gub.uy/innovaportal/v/26844/1/innova.front/quedo-inaugurada-la-operativa-de-los-tres-nuevos-escaneres-en-el-puerto-de-montevideo.html
The author holds a degree in International Relations from the University of the Republic of Uruguay. She specialized in Comprehensive Logistics from the Catholic University of Córdoba, Argentina. She has been involved in Foreign Trade since 2011 and has worked in the Inspection Division of the Control and Risk Management Area of the National Customs Directorate in Uruguay since 2014. She received training in Post-Clearance Control from the World Customs Organization in 2016 and has been a speaker on the subject in various workshops and seminars for countries in Latin America and the Caribbean. From 2022 to 2023, she participated in WCO Missions, providing technical assistance in Post-Clearance Audit. She has also been a speaker on risk matters at other Customs authorities, such as SUNAT in 2021, presenting "Commercial fraud according to the WCO and its most significant manifestations","New challenges in risk" before the Secretary of Strategic Intelligence of the State of Uruguay (SIEE) and recently in 2025 regarding "Activities of the National Customs Directorate. Risk Control and Management Area. Inspection Division" within the framework of the Cooperation Project for Economic and Financial Security and the Fight against Organized Crime (SEFILAT).
Current events and constant technological advancement have also motivated her, so she has trained in the use of new technologies that promote trade facilitation, participating in various workshops on innovation in trade facilitation organized by the Global Alliance for Trade Facilitation.
