rriers once the shipment is in compliance.

In some cases, this has resulted in trucks departing earlier in the day or even the day before to allow for, or avoid delay at the border.  Similar impacts were found in the ITS – CVO Border Crossing Deployment Evaluation (IMTC, 2003) which estimated that waiting times approaching the border cost the trucking industry USD$13.8 million and at the booth another USD$0.8 million or USD$14.6 million annually.  Custom broker related costs added USD$7.4 billion for a total of USD$22 billion.  Chow, Frank and  Gados (2006) found the same impacts on investment, costs and operating effectiveness due to security regulations and requirements can be found in the maritime and air sectors as well.  The cost incurred by the carriers and other logistics service providers such as shipping lines and port terminal security are eventually distributed to the shippers or absorbed by the logistics service providers.  Security improvements come at a cost.  A private sector analysis conducted by the International Monetary Fund (IMF) estimated the increase to business costs due to higher security at USD$1.6 billion per year, the extra financing burden of carrying 10% higher inventories at USD$7.5 billion per year.  Another study estimated an increase in commercial insurance premiums of 20 percent at about USD$30 billion a year (Peleg-Gillai, 2006).

Willis, H.H. and Ortiz, D.S. (2004) recognized that supply chain security and efficiency are inseparable.  Improving the supply chain efficiency may or may not improve supply chain security.  For example, labour reductions for the sake of efficiency may decrease security.  Proponents of increased supply chain security often cite efficiency as an auxiliary benefit, although the two properties are often independent.  Increased inspection could create delays that would lead to losses of perishable cargo or to negative economic effects on consignees.  The interconnected nature of supply chain capabilities suggests that security measures that reduce efficiency could have been unintended because stakeholders will look for ways to compensate for or circumvent the security requirements.  Chow (2007) dud a study to develop a total logistics cost model to stimulate alternative logistics scenarios and security strategies to determine the influence of security initiatives on total logistics cost.  The application of the model to the Asia Pacific Gateways demonstrates the usefulness of such model in evaluating how security impacts total logistics cost of using this gateway and subsequently the gateway’s competitive advantage.  The total logistics cost model primarily focused on transportation and inventory cost elements of logistics costs.  Expanded model such as loss and damage cost, reduced insurance costs and packaging costs could be considered as elements of cost.  In addition, security initiatives that impact visibility of freight movements along the supply chain can boost the ability of logistics managers to make improved decisions.  For example, with advanced information required for security, improved advanced planning may results in increased consolidation opportunities, the ability to c