e Freight Intro July2010[1]

8/7/2019 e Freight Intro July2010[1]

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IATA Cargo International Air Transport Association 2010

All you need to know aboutIATA e-freight

July 2010


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2IATA Cargo International Air Transport Association 2010

Today the air cargo industry still relies on paper-based processes to support the movement offreight.

The average airfreight shipment generates up to 30different paper documents increasing the cost ofairfreight and lengthening transport times.

IATA e-freight

BACKGROUND >>


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IATA e-freight is an initiative for the air cargo supplychain, by the air cargo supply chain. It involvescarriers, freight forwarders, ground handlers,shippers, customs brokers and customs authorities.

It replaces paper documents with electronicmessages, reducing costs, improving transit times,accuracy and the competitiveness of airfreight.

IATA e-freight

OBJECTIVES >>


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IATA e-freight is taking a multimodal approach to itselectronic messaging standards.

Electronic messages that replace documents used in

all types of transport like the packing list, invoice orcertificate of origin work for air, sea and landshipments.

IATA e-freight

SCOPE OF DOCUMENTS >>


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IATA e-freight removes 3 types of documents

IATA e-freight


Invoice

Packing List

Certificate of Origin

(where legally feasible)

Trade documents

Others in future

Sent electronically by originshippers and/or freight

forwarders to destinationeither using agreed EDIstandards (XML) or simplepdf documents oftendone in pre-alerts alreadytoday

Transport documents

Replaced with IATA Cargo-IMP electronic messages

(FWB, FHL, FFM, FSU),already in use by manyairlines and forwarders (infuture, XML equivalents willalso be available)

Customs documents

IATA e-freight is onlyimplemented in locations

where import and exportdeclarations and releaseare already electronic andwhere customs agree theydo not need original paperdocuments

Flight Manifest

Air Waybill

House Manifest

House Waybill

Export and Import

Cargo Declarationand Release

Export and Import

Goods Declaration

and Release


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IATA e-freight


By the end of 2009, 16 paper documents werereplaced with electronic messages. 4 moredocuments will be replaced in 2010, for a total of 20.


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IATA e-freight

BUSINESS CASE >>

Up to US$4.9 billion annual net benefits across thesupply chain

Total benefits US$5.9 billion, less US$1 billion in

operational costs of messaging and scanningelectronic documents

Conservative estimate: US$3.1 billion in benefits,based on 80% e-freight capability and penetrationacross the industry

1.7 bn

1.7 bn

1.7 bn

0.8bn

Document ProcessingCosts

Improved Delivery Time

Reduced Inventory

Increased Market Share


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IATA e-freight

BENEFITS >>

Better service

Faster supply chain transit times: the ability to sendshipment documentation before the cargo itself can reducethe industry cycle time by an average of 24 hours.

Greater accuracy: electronic document auto population allowing one time electronic data entry at point of origin reduces delays to shipments due to inaccurate orinconsistent data entry. Electronic documents are less likelyto be misplaced, so shipments will no longer be delayedbecause of missing documentation.

Better tracking: data entered electronically givesorganizations the opportunity to track shipments en route allowing for real-time status updates.


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IATA e-freight

BENEFITS >>

Regulatory compliance

IATA e-freight meets all international and local regulationsrelating to the provision of electronic documents and datarequired by customs, civil aviation and other regulatoryauthorities.

Increased security

Electronic documents are only made available to partieswho require them for the completion of a shipment.

Environmentally friendly

IATA e-freight will eliminate more than 7,800 tones of paperdocuments, the equivalent of 80 Boeing 747 freighters.


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IATA e-freight

SCORECARD >>

As of June 2010, IATA e-freight was live in 28countries / administrative areas and more than 270airports.

Over 700 live stakeholders (airlines and freightforwarders) can now use e-freight on more than 9000trade lanes.

Monthly scorecards are available on the website:

http://www.iata.org/whatwedo/cargo/efreight/


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IATA e-freight

COUNTRIES >>

As of June 2010, IATA e-freight was live in 28countries / administrative areas:

>> North America: Canada and USA

>> Latin America: Chile>> Europe: UK, Sweden, Norway, Denmark,Netherlands, Luxembourg, France, Switzerland,Germany, Spain, Iceland, Finland, Austria>> Africa: Mauritius

>> Middle-East: Dubai and Egypt>> North Asia: Hong Kong and China>> Asia Pacific: Singapore, Japan, South Korea,Malaysia, Australia, New Zealand, Chinese Taipei


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IATA e-freight

COUNTRIES >>

IATA is conducting assessments of other majorcountries / administrative areas to continue buildingthe e-freight pipeline. Therefore, these 16 additionalcountries are targeted to be live by end of 2010:

>> Latin America: Colombia, Mexico>> Europe: Belgium, Cyprus, Czech Republic,Estonia, Hungary, Ireland, Italy, Malta, Portugal,Romania, Slovakia, Slovenia

>> Middle-East: Israel>> Africa: Kenya>> Asia Pacific: India, Thailand


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IATA e-freight

GET STARTED >>

>> All the key documents and relevant information tostart e-freight are freely available on the IATA website: http://www.iata.org/whatwedo/cargo/efreight

>> The IATA e-freight Handbook and itsaccompanying documents on the website are yourstarting point. This includes a self-assessment andself-guided methodology to implement e-freight

>> Upon request, the IATA e-freight project team canalso help you with special questions requestingexpert advice via [email protected]


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Legal notice to carriers and shippers participating in IATA e-freight

Shippers and carriers are reminded that IATA e-freight is a discretionary programme,and it is up to shippers and carriers alike, based on their internal legal analysis, todetermine how they should ship and document cargo to and from any IATA endorsed e-freight destination. IATA provides recommended tools for accomplishing e-freight

transactions such as Cargo-IMP messaging and model EDI Agreements, and throughits endorsement of particular destinations, confirms that the governments of suchdestinations should accept the use of these tools at their borders. By ensuring that anendorsed location is a signatory to either MP4 or MC99, IATA can compel theacceptability of IATA e-freight tools, however, such endorsement does not affect in anyway the pre-existing legal regime with regard to liability or the particular requirements

that cargo insurance carriers may have when cargo is transported to and fromthose destinations. The determination how liability and insurance issues should beresolved continues to be the responsibility of the carriers and shippers.

Documents

e Freight Intro July2010[1]