Starting December 3, all cargo aboard U.S.-bound passenger flights will be subject to security screening. Under a 2007 law, the U.S. Congress required that 100% of cargo aboard inbound passenger flights be screened. Earlier this year, in May, the U.S. Transportation Security Administration (TSA) set the December deadline for all passenger carriers. The impact of the December deadline will be significant. Domestically, passenger flights transport roughly 25% of all cargo shipped by air within the United States, and occupy nearly 95% of domestic passenger flights.

After announcing the December deadline, the TSA concluded agreements with Canada and the European Union to recognize Canadian and European security screening. Under the U.S.-Canada and U.S.-E.U. Cargo Security Agreements of May and June 2012, cargo that has been screened in Canada or the European Union will not need to undergo additional screening at U.S. airports. However, these agreements account for only 29 countries worldwide. Sources within the TSA expect that flights originating in certain other countries may encounter significant, routine delays once the 100% screening requirement comes into effect.

Masuda Funai continues to monitor the TSA's National Global Supply-Chain Security initiative and will update clients on the signing of further cooperative agreements between the TSA and overseas national cargo screening programs (NCSP's).