The role of customs in securing containerized global supply chains

Customs has to deal with a massive number of containers arriving at ports. This massive flow of cargo provides an opportunity for organized crime infiltration. Risk management and the security of the supply chain has become a top priority for Customs administrations and for private firms. In this paper, we develop models that allow Customs to optimize its inspection process to target high-risk containers without hindering the flow of safe containers with extra delays at ports. The model characterizes optimal informational and physical inspection rates as a function of the risk factors attributed to containers. We use this model to analyze how an effective public-private partnership for risk and security management can be established between Customs and private firms.