Smart and Safe Borders: The Logistics of Inbound Cargo Security

In this paper, the changes that have taken place since September 11, 2001 regarding cargo inbound to the United States are examined. An appraisal of the new rules proposed by the U.S. Bureau of Customs and Border Protection is provided along with an evaluation, using a game‐theoretic model, of how shippers and carriers may be expected to adapt to this new set of regulations. Since Canada is the most prominent trade partner of the United States, an overview of these changes in the context of the U.S.‐Canada border is presented.