[FOLKS] The Birth of CTPAT: Michael Laden on Building Supply Chain Security After 9/11

Host: Lalo Solorzano Guest(s): Michael Laden Published: September 11, 2026 Length: 40:24 Presented by: Global Training Center Summary In the aftermath of September 11, 2001, U.S. Customs faced an unprecedented challenge: protect the country from another attack without bringing legitimate international trade to a standstill. In this episode of Simply Trade, Lalo Solorzano sits down with Michael Laden, one of the original private-sector architects who helped shape what became the Customs Trade Partnership Against Terrorism (CTPAT). At the time, Michael was a senior trade executive at Target, overseeing a massive global supply chain involving thousands of vendors across 84 countries. The morning after the attacks, he sent a short email to U.S. Customs offering to help. Within 20 minutes, his phone rang. That call would eventually put Michael in meetings with Customs officials and approximately 50 experts from across the international trade community as they worked at extraordinary speed to rethink cargo security. Michael shares the story from inside those rooms: the lessons Customs learned about global supply chains, why the private sector insisted CTPAT remain voluntary, the role of the original seven charter members, and how Target discovered that stronger security could actually make its supply chain more efficient. Twenty-five years later, this is the story of how crisis, collaboration, and practical trade experience helped reshape supply chain security. Main Topic / Discussion When Trade Changed Overnight Following the September 11 attacks, Customs elevated security to its highest priority. Inspections intensified, border traffic slowed dramatically, and just-in-time supply chains began breaking down. Michael recalls watching the attacks from Target's offices and realizing later that evening that international trade was about to change. The following morning, he emailed Bonni Tischler, then Assistant Commissioner for Field Operations at the U.S. Customs Service, offering to help from his positions at Target, COAC, and AAEI. Within approximately 20 minutes, he received a call asking him to come to Washington as soon as flights resumed. Separating the Known From the Unknown Michael's central idea was straightforward: Customs needed a way to distinguish trusted, known companies and supply chains from unknown and potentially higher-risk shipments. He pointed to the Business Anti-Smuggling Coalition (BASC), an existing initiative designed to harden supply chains against narcotics smuggling, and suggested adapting the concept to address terrorism on a global scale. That idea became part of the foundation for what ultimately developed into CTPAT. Teaching Customs How Supply Chains Really Worked One of Michael's most revealing stories comes from a meeting with Customs investigators. Officials wanted Target to guarantee that every shipment entering the United States was completely secure. Michael explained the enormous complexity behind such a request: Target worked with approximately 15,000 vendors across 84 countries. The exchange exposed a critical knowledge gap. Customs understood what happened when cargo arrived at a U.S. port of entry, but the agency needed private-sector expertise to understand everything that happened upstream throughout a global supply chain. Building CTPAT at “Warp Speed” COAC convened approximately 50 private-sector experts representing importers, exporters, brokers, freight forwarders, ports, truckers, airlines, and other parts of international transportation. Working alongside Customs, the group examined individual supply-chain modes and helped develop the framework that became CTPAT. Michael also describes debate inside government over which agency should control incoming cargo and explains why members of the trade community strongly advocated for Customs to retain that responsibility. The program was formally launched on April 16, 2002, with seven charter members Commissioner Robert Bonner referred to as the “Magnificent Seven.” Why CTPAT Was Voluntary According to Michael, the trade community strongly pushed for CTPAT to begin as a voluntary partnership. The reasoning was important: a mandatory system would put every importer into essentially the same regulatory pool. A voluntary program could instead reward companies willing to invest in stronger security while allowing Customs to focus greater scrutiny on companies and supply chains outside the program. Security That Improved the Business When Michael asked Target leadership to support the initiative, executives naturally wanted to know what it would cost. The surprising result was that some changes made to secure Target's supply chain actually saved money. The company identified redundancies, improved transportation processes, increased efficiency, and strengthened security at the same time. For Michael, that remains an important lesson for companies evaluating CTPAT today: supply-chain security does not necessarily have to come at the expense of operational efficiency. Key Takeaways • CTPAT grew from an urgent post-9/11 need to secure international supply chains without stopping legitimate global commerce. • Government could not secure the international supply chain alone. The program required collaboration with the companies, carriers, logistics providers, and professionals who actually operated those supply chains. • Michael Laden's early recommendation to adapt concepts from BASC helped frame a system in which Customs could better separate known, trusted supply chains from unknown risks. • Twenty-five years later, CTPAT demonstrates how security and trade facilitation can reinforce each other—and how stronger supply-chain controls can sometimes create operational efficiencies rather than simply additional costs. Resources & Mentions • Global Training Center • Michael Laden — “The Genesis of the U.S. C-TPAT Program” • Robert Bonner — Testimony Before the 9/11 Commission • The Washington Post — “Nation to Boost Anti-Terrorism Precautions” • Voice of America — “New Security Measures Cause Traffic Jams at U.S.–Mexico Border” • Voice of America — “September Terror Attacks Tighten U.S.–Mexico Border” • UTEP/El Paso Borderplex Research Compilation • Michael Laden — “C-TPAT Off the Rails” • CBP — Customs Trade Partnership Against Terrorism (CTPAT) Credits Host: Lalo Solorzano Guest(s): Michael Laden - LinkedIn Producer: Lalo Solorzano 📢 Subscribe & Follow Stay connected with the Simply Trade community and never miss an episode that helps you trade smarter. 🎧 Listen on: • Apple Podcasts • Spotify • YouTube 💬 Connect with us: • Simply Trade • Global Training Center • Trade Geeks Community Don't forget to rate, review, and share with your fellow trade geeks! 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