TSA probes OHL subsidiary for security breaches

TSA probes OHL subsidiary for security breaches    The U.S. Transportation Security Administration has effectively shut down Activair, the air freight forwarding division of Brentwood, Tenn.-based OHL, while it investigates allegations the company did not do screenings of large amounts of freight at its main Indianapolis facility before tendering it to passenger airlines.
   The company is regulated by the TSA and is certified to self-screen cargo. Under the Certified Cargo Screening Program shippers, forwarders and independent third parties can get approval to screen cargo themselves in order to minimize damage from extra handling and inspection delays that could result if the responsibility is left to airlines. The TSA implemented the program in advance of the Aug. 1 deadline to screen all air cargo on passenger planes for bombs and explosives to help avoid commercial disruptions.
   'TSA is investigating regulatory violations by former Certified Cargo Screening Facility, Activair, located in Indianapolis. Based on preliminary findings, TSA has ordered the facility to no longer handle air cargo at this time. We will not comment on details of the investigation while it is ongoing,' the agency said in a statement provided to AmericanShipper.com.
   It is not immediately clear how TSA uncovered the possible security breaches, but the agency has more than 500 cargo inspectors who periodically check whether certified screeners are meeting standards. This is the first known instance of a company being kicked out of the CCSP program after meeting its higher security bar.
   OHL is 'cooperating fully' with the TSA's investigation and conducting its own investigation, spokeswoman Kara Brown said. She declined to provide details of the alleged violations due to the ongoing investigation, which CBS News first reported on its Web site.
   The third-party logistics provider said in an e-mailed statement that it 'voluntarily removed Activair’s Indianapolis facility from the federal air cargo screening system earlier this month after TSA raised questions about the facility’s procedures.'
   OHL, formerly known as Ozburn-Hessey Logistics, acquired London-based Activair in 2008 as part of a broader effort to build out its international logistics capabilities. In May of this year, the company decided to integrate Activair under the OHL brand and phased out the prior name. The Activair subsidiary operates as part of the global freight management and logistics business unit, which the company touts as having a higher-than-average Customs compliance rating.
   OHL handles more than 110,000 air freight shipments per year, according to a 2009 profile on the company by Armstrong & Associates.
   In response to the Activair security breakdown, OHL on Dec. 26 named Paul D. Killea as its new compliance director overseeing compliance and security, including company-wide audits. He slides over to the new post after serving as senior vice president of the customs brokerage division. He previously was vice president for compliance at ABX Logistics and Exel Global Logistics before joining OHL in June.
   OHL previously had a compliance leader, but not at the senior vice president level that directly reports to the company's executive team, Brown said. The move elevates the importance of compliance within the company.
   OHL said it is using its Barthco International network to handle Activair freight. 'As a result, our customers will not be affected by the TSA inquiry.'
   The 3PL acquired its Barthco subsidiary in 2006. ' Eric Kulisch