1. e freight-fundamentals

1 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013

e-freight

fundamentals


„Building and implementing an end-to-end

paperless transportation process for the air

cargo industry where paper documents are

replaced with the exchange of electronic data‟

Shipper

Export

Customs/

Regulators Import

Customs/

Regulators

Origin

Forwarder

Carrier

Consignee

Destination

Forwarder

Origin

GHA

Destination

GHA

Safe, Secure, Reliable, Efficient

e-freight Vision


e-freight fundamentals (1/3)

e-freight is about building a paper free air cargo supply chain

It includes a set of business processes and standards that allow to

remove paper documents from the process of shipping air cargo from

origin to destination

Documents are replaced with the exchange of electronic data



The e-freight initiative identifies the locations where those electronic

standards can be used

The e-freight initiative drives adoption of those standards by industry

participants via targeted change management initiatives


e-Doc standards used as part of e-freight rely on use of EDI (Cargo-

IMP or XML) or scanned images (for some documents)

e-freight uses the existing air cargo industry messaging

infrastructure. Participants must use in-house technology to connect

to their partners or use tools provided by their partners or 3rd party

providers



Shippers

Export

Customs

Import

Customs

Origin

Freight Forwarders

Carrier

Consignees

1. Invoice

2. Packing List

3. Certificate of Origin

4. Letter of Instruction

5. Dangerous Goods Declaration

6.CITES certificate*

7. Master Air Waybill

8. House Waybill

9. House Manifest

10. Export Goods Declaration

11. Customs Release Export

Destination

Freight Forwarders

19. Import Goods Declaration

20. Customs Release Import

12. Flight Manifest

13. Transfer Manifest

14. Export Cargo Declaration

15. Import Cargo Declaration

16. Transit Declaration*

17. Security Declaration*

18. Freight Book List*

Origin

GHA

Destination

GHA

Scope: e-freight documents


Cost: Eliminate paper handling, transporting and processing cost

(eliminates data re-capture)

Time: Reduced freight “wait time”

Quality: Unified Quality Management Standards

Visibility: Quality electronic messaging for tracking status of freight

Sustainability: Contribute to environment by reducing paper consumption

e-freight: Why do it?

8

42 Locations LIVE

437 Airports LIVE

Graphic figures

are based on

October 2012 data.

Overall e-freight

penetration

reached 14% on

trade lanes that

were live at the end

of 2010.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Monthly EF Volume (last 12 months)

Total EF Consignment EAP

EAW EF Penetration between live partners

INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013

e-freight Status – end Oct 2012

9

IATA published the Cargo-XML Manual and Toolkit (1st Edition) containing the following 14 Cargo-XML Messages:


Cargo-XML Standards for e-freight

Transport Messages Acronym

XML Waybill XFWB

XML House Waybill XFZB

XML House Manifest XFHL

XML Flight Manifest XFFM

XML Freight Booked List XFBL

XML Status Message XFSU

XML Response Message XFNM

XML Booking Message XFFR

XML Custom Status Notification XCSN

Commercial Messages Acronym

XML Shippers Declaration for Dangerous

Goods XSDG

XML Invoice XINV

XML Packing List XPCL

XML Certificate of Origin XCOO

XML Shippers Letter of Instruction XSLI

Note: IATA also developed CITES permit and Transit Declaration

in conjunction with respective organizations i.e. Convention on

International Trade in Endangered Species (CITES) and World

Customs Organization (WCO)

For further details about Cargo-XML standards please visit www.iata.org/cxmltf

10

2009 2010 2011 2012 2013 2015 2014 2006 2007 2008

Drive Roadmap towards

100% paperless

Project Kick -Off

Pilots in six

locations (1)

First e-FOPs (2)

GACAG

Roadmap

(1) Canada, Hong Kong, Netherlands, Singapore, Sweden, United Kingdom

(2) e-freight Operational Procedures

Develop missing

standards

Build the route network

(location Capability)


e-freight development life cycle

11

In 2012 GACAG adopted a

„ three-pillar‟ Roadmap to achieve

paperless transportation


12

Three Pillars towards paperless

Shipper

Export

Customs/

Regulators

Import

Customs/

Regulators

Carrier

Consignee Origin

GHA

Destination

GHA

Pillar I – Establish Route

Network (enabler) Engage regulators to create

network where customs are

electronic and regulatory

environment supports paperless

Pillar II – Implement Paperless

„airport-to-airport‟ Digitize core transport docs: Air Waybill,

House Manifest, Consignment Security Dec.

(CSD), Flight Manifest

Goal: Paperless acceptance and delivery of

freight, airport to airport.

Pillar III – Implement

Paperless „door-to-door „ Digitize core commercial docs

(invoice/Packing list/HAWB) and

Special cargo docs

Goal: Removal of document

pouches, shipper to consignee

Pillar I

Pillar II

Pillar III

*Air Waybill, House Manifest, Flight Manifest, (Consignment Security Declaration is anticipated)

Origin

Forwarder

Destination

Forwarder



What is required for

e-freight to work?

14

II – Removal of Core

Transport Docs

III – Removal of pouch

Shipper

Customs

and

Regulators

ForwarderHandler

I – Global e-freight

Network

IATA IATA FIATA & GSF

Forwarder

Airline

Pilots in two BRIC

locations

45% trade lane coverage

e-AWB 20% penetrationIndustry plan to digitize

commercial docs

Airline

80% world trade lanes 100% paperless *Use of e-pouch for

general cargo

Key

Stake-

holders

2013

Target

2015 Goal

Lead

*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration

Pillar I

Electronic Customs environment

Ability to make customs declarations electronically (export and import)

No requirement to show original paper documents for invoice and packing lists during or post transit

Electronic docs (invoice/packing list) must be accepted in electronic format, or printed copy


15

Key electronic customs requirements

for e-freight

Customs should accept:

Electronic as an alternative to paper-based requirements

Goods & cargo declarations exchanged electronically

Release & control notification exchanged electronically

Supporting documents exchanged electronically

Messages & supporting documents archived electronically

Paper by exceptions e.g. for examination

Paper printout of electronic records instead of paper originals – at least for invoice and packing list, master air waybill and house air waybill (including for post-flight audits)


16

e-freight trade & transport

messages should “feed”

Customs messages, reducing

manual entries and

increasing Quality


17

Pillar II

Electronic communication between FF-Airline-GHA

Ability to communicate FWB and FHL information between FF-Airline-GHA systems (or capture information on airline web portal)

e-AWB agreements signed and implemented (currently optional for e-freight but mandatory as of Jan 2013)

Procedures defined between FF-GHA-Airline to accept freight at acceptance counter (origin) and for freight delivery (destination) without original paper docs (may require use of a shippers delivery note or warehouse receipt)



Transport Docs


Shipper

Customs

and

Regulators

ForwarderHandler


Network


Forwarder

Airline

Pilots in two BRIC

locations



commercial docs

Airline


general cargo

Key

Stake-

holders

2013

Target

2015 Goal

Lead



Transport Docs


Shipper

Customs

and

Regulators

ForwarderHandler


Network


Forwarder

Airline

Pilots in two BRIC

locations



commercial docs

Airline


general cargo

Key

Stake-

holders

2013

Target

2015 Goal

Lead


*Air waybill, House Manifest, Flight Manifest, Consignment Security Declaration

18

Flight Manifest

House Waybill

Master Air Waybill

House Manifest

House Waybill

Cargo Declaration

Goods Declaration

Invoice Invoice

Packing List Packing List

Air Waybill

Tra

de

T

ran

sp

ort

ati

on

Cu

sto

ms

Invoice

Packing List


19

Pillar III

Electronic communication between origin and destination forwarder/consignee

Ability of origin forwarder to communicate key documents to destination forwarder, broker and shipper electronically (house air waybill, invoice, packing list)

Ability to archive documents electronically (e-Archiving)

Once the above are in place, the forwarder does not need to provide these documents to the airline for carriage to destination (Elimination of the document pouch for general cargo documents, reduced pouch for other cargo that needs special cargo docs in the pouch)



Transport Docs


Shipper

Customs

and

Regulators

ForwarderHandler


Network


Forwarder

Airline

Pilots in two BRIC

locations



commercial docs

Airline


general cargo

Key

Stake-

holders

2013

Target

2015 Goal

Lead



Transport Docs


Shipper

Customs

and

Regulators

ForwarderHandler


Network


Forwarder

Airline

Pilots in two BRIC

locations



commercial docs

Airline


general cargo

Key

Stake-

holders

2013

Target

2015 Goal

Lead


III – Removal of the pouch

20

Appendix

e-freight: end-to-end data flow for General Cargo

e-freight: Principles

e-freight: find out more


21

In the paperless environment, data flows match the

requirements of each party for information

The following diagram represents one possible data flow

scenario

Other scenarios exist based on the location, the nature of the

cargo, or the specific arrangement between the parties


e-freight end-to-end data flow

for General Cargo

22

Export Customs

Flight Manifest

Air Waybill

House Manifest

Cargo Acceptance

Export Cargo Decl. /

Customs Release Export

Import Customs

Air Waybill

House Manifest

Invoice

Packing List

Air Waybill

House Manifest

House Waybill

Export Customs

Export Goods Decl. /

Customs Release Export

Invoice

Packing List

Invoice

Packing List

Origin

Freight Forwarders

Information flow EDI

Freight flow

Carrier

Consignees

Shippers

Import Cargo Decl. /

Customs Release Import

Import Customs

Import Goods Decl. /

Customs Release Import

Destination

Freight Forwarders

Information flow EDI or Scan

e-freight end-to-end data flow for General Cargo


23

In support of the vision to build and implement an end-to-end paperless process for

the air cargo industry, GACAG members have identified the following principles.

The initiative shall:

Aim to achieve data capture at source (to avoid re-keying)

Adopt end-to-end supply chain vision: shipper to consignee (to enable single data

capture)

Encompass customs, security and transportation and other relevant documents that

are part of the freight transportation process

Include legal, regulatory, business and technology elements in the definition of

paperless processes

Rely on e-Document standards and common business processes (defined in e-freight

Operating Procedures – e-FOP) that are aligned with international standard setting

bodies (WCO, UNCEFACT, ICAO, etc.)

Allow paper to still be present by exception as required by local processes and based

on electronic source data (print-on-demand)


e-freight: Principles (1/2)

24

In support of the vision to build and implement an end-to-end paperless process for

the air cargo industry, GACAG members have identified the following principles :

The initiative shall:

Not rely on single industry technology platform: each participant remains responsible for

managing their own data

Use existing industry EDI infrastructure where sufficient, but upgrade where relevant

Drive emergence of solutions that facilitate adoption by all parts of the supply chain,

and all types of organizations (large and small)

Identify workable migration paths from current paper based processes to paperless

processes

Define a roadmap towards 100% paperless that splits the vision in manageable

components with specific deliverables over time


e-freight: Principles (2/2)


Tools provided by IATA to support you:

e-Cargo Matchmaker: who does e-freight where

e-freight complete Case Studies

e-freight Handbook: implementation guide

e-freight self-assessment questionnaire

e-freight Model EDI agreement (for e-AWB)

Capability Matrix of IT Providers

www.iata.org/e-freight and www.iata.org/e-AWB

e-freight: Find out more

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1. e freight-fundamentals