| Post-9/11 additional security costs can increase the cost of trade. The attacks of September 11, 2011 (9/11) may have changed how the world conducts international business. Historically, factors like GDP, income similarity, and tariff intensity, have had significant correlations with trade costs and trade flows. Since 9/11, the salience of terrorism, and the potential response may have become factors that can maintain significant correlations to trade costs and trade flows. Changes in trade costs and applied security procedures could have considerable impacts on international trade flows. The specific problem that was the focus of this study was that the effects of increased costs and turnaround time from counter-terrorism efforts on freight traffic were not well-understood. The purpose of the study was to gain a better understanding of the effects of post-9/11 security measures on international logistics flows. The research design was a correlational non-experimental quantitative analysis using multiple regression on quantitative secondary data. The participants of the study were the seaports in the United States that participate in containerized international trade and charge a post-9/11 security charge. Findings from bivariate linear regression analyses revealed that the security cost of trade variable of post-9/11 security measures did not significantly predict sea freight traffic (B = .320, beta = .174, t = 1.402, p < .10). Ship turnaround variable of the post-9/11 security measures significantly predicted sea freight traffic to a seaport (B = -3.547, beta = .037, t = -2.220, p < .10). The combination of the two variables of post-9/11 security measures in a multiple regression analysis, significantly predicted sea freight traffic to a seaport R2 = .204, F(2, 22) = 2.817, p < .10, where ship turnaround time was the significant predictor and port security cost was not a significant predictor. Recommendation for practical use was that policy makers focus on ship turnaround time over port security cost, when seeking ways to improve sea freight traffic to a port. Recommendations for future research include expanding the sample size, introducing more predictors, and including seaports outside the United States. |
