prNew security measures to have chilling effect on international trade
Post-London plot air cargo security measures — among them BA’s decision not to allow cargo to be carried on passenger planes — are already disrupting international trade; for example, only 2 percent of the volume of Britain’s trade is carried by air, but this small fraction translates to an impressive 25 percent of the value of all goods imported into and exported out of the U.K.
Last week’s London plot by would-be terrorists to smuggle liquid explosives on board U.S.-bound planes has caused air-travel security authorities to lengthen the list of substances banned from being taken on board. In addition, British Airways has suspended cargo services on passenger planes, leading to fears that medicine supplies for hospitals and supplies for supermarkets will be disrupted. BA carries about half of all goods flown in and out of the United Kingdom.
New security guidelines introduced by the U.K. government mean that airlines have had to allocate this cargo space for passengers’ handluggage, which is now banned from the cabin. Thousands of firms relying on high-value imports will go without while exporters risk losing major contracts, according to industry body the Freight Transport Association (FTA).
Only 2 percent of the volume of Britain’s trade is carried by air, but this small fraction translates to an impressive 25 percent of the value of all goods imported and exported. Three quarters of this is carried in the holds of passenger planes. BA had hoped to start carrying cargo again by Tuesday, but company sources say that it looks increasingly unlikely that there will be any change in the no-cargo-on-passenger-planes policy for some time.
Among those most likely to feel the pinch soon: Patients dependent on time-sensitive drugs sent from abroad; companies in the car industry which will soon run low on spare parts; computer firms which will need new stock; and supermarkets which rely on air freight for some supplies of flowers and exotic fruit and vegetables. Luxury goods and sales of DVDs and books will also be held up, and air mail deliveries will be disrupted. Dedicated air freight companies such as DHL and Federal Express have also been hit — but not by the ban on carrying cargo; rather, their services are suffering as result of increased checks on its flights and congestion at airports.
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