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StB

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Regulators want more security and demand more information ... USA (JFK/ORD) New Zealand. Mauritius. Dubai. Denmark. Spain. Norway. Luxembourg. France. 6 ... – PowerPoint PPT presentation

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Title: StB


1
IATA e-freight
Generic Benefits Presentation
April 2009
2
IATA e-freight Introduction
  • The air freight supply chain faces increasing
    challenges
  • Customers want, faster speed, lower costs and
    more reliability
  • Regulators want more security and demand more
    information
  • Slowing economic growth means less revenue
  • One way to meet these challenges is to migrate
    from a paper based process to a data driven
    process for transportation of goods
  • IATA e-freight is taking the paper out of air
    cargo and replacing it with electronic messages

3
IATA e-freight Basics What is it?
Shippers
Origin-Destination Carrier
Origin Freight Forwarders
Export Customs
Import Customs
Destination Freight Forwarders
  • Aimed at eliminating the need to transport all
    paper documents for air cargo shipments

Consignees
4
IATA e-freight Basics What is it?
Shippers
Origin-Destination Carrier
Origin Freight Forwarders
Export Customs
Import Customs
Destination Freight Forwarders
  • A project built by the supply chain, for the
    supply chain a joint air cargo industry
    programme of shippers, forwarders, ground
    handlers, carriers, customs brokers and customs,
    facilitated by IATA
  • Shippers, freight forwarders involved in project
    advisory groups and local working groups to
    define e-freight operational procedures

Consignees
5
IATA e-freight Basics When?
6
IATA e-freight Basics When?
Belgium
Switzerland
China
Japan
LIVE!
Malaysia
2009 5 more locations go-live 14 new airports
in current live countries
7
IATA e-freight Basics When?
By end 2010 44 locations live accounting for
approx 80 of international trade Top 5 domestic
markets implemented accounting for more than 85
of domestic traffic
8
IATA e-freight Scope of Documents
Shippers
Origin-Destination Carrier
Origin Freight Forwarders
  • Import Goods Declaration
  • Customs Release Import

Export Customs
Import Customs
  • Invoice
  • Packing List
  • Certificate of Origin
  • Letter of Instruction
  • Dangerous Goods Declaration

Destination Freight Forwarders
  • Master Air Waybill
  • House Waybill
  • House Manifest
  • Export Goods Declaration
  • Customs Release Export
  • Flight Manifest
  • Transfer Manifest
  • Export Cargo Declaration
  • Import Cargo Declaration

Consignees
2009 16 Documents in scope2010 20 documents in
scope64 of the paper in volume
9
IATA e-freight Scope of Documents
Shippers
Origin-Destination Carrier
Origin Freight Forwarders
  • Import Goods Declaration
  • Customs Release Import

Export Customs
Import Customs
  • Invoice
  • Packing List
  • Certificate of Origin
  • Letter of Instruction
  • Dangerous Goods Declaration

Destination Freight Forwarders
  • Master Air Waybill
  • House Waybill
  • House Manifest
  • Export Goods Declaration
  • Customs Release Export
  • Flight Manifest
  • Transfer Manifest
  • Export Cargo Declaration
  • Import Cargo Declaration

Consignees
Standards defined are multimodal and
interoperable
10
IATA e-freight Project Timeline Summary
2008
2009
2010
2006
2007
  • Expand with new locations
  • Involve additional stakeholders (shippers)
  • Triple the number of locations to 18
  • Expand on initial Operating Procedures and on
    Standards to 13
  • Publish the IATA e-freight Handbook
  • Global Implementation
  • 2009 5 more countries, 14 more airports - half
    of which will be in the USA, 3 more standards
  • 2010 4 more standards, e-freight capability in
    locations that account for approx 80 of
    international airfreight

Initial scoping/ target definition/ planning
  • Pilots
  • Proved the concept
  • Defined initial Operating Procedures (eFOPs) and
    Standards
  • 6 locations go-live

11
IATA e-freight The Business Case for e-freight
  • Lower costs
  • Up to US4.9 billion annual net benefits across
    the supply chain
  • Total benefits US5.9 billion, less US1 billion
    in operational costs of messaging and scanning
    electronic documents
  • Conservative estimate US3.1 billion in
    benefits, based on 80 e-freight capability and
    penetration across the industry

1.7 bn
1.7 bn
0.8 bn
1.7 bn
12
IATA e-freight The Business Case for e-freight
  • Better service
  • Faster supply chain transit times
  • The ability to send shipment documentation before
    the cargo itself can reduce the end-to-end cycle
    time by an average of 24 hours
  • Greater accuracy
  • Electronic documents auto population allowing
    one time electronic data entry at point of origin
    - reduces delays to shipments due to inaccurate
    or inconsistent data entry
  • Electronic documents also are less likely to be
    misplaced, so shipments will not be delayed
    because of missing documentation

In South Korea, freight forwarders can now
transport freight to the airlines as soon as the
FWB is created. Printing and manual pouching of
the documents can be done after the freight
departs, saving time and money.
13
IATA e-freight The Business Case for e-freight
  • Better service
  • Better tracking
  • Data entered electronically gives organisations
    the opportunity to track shipments en route
    allowing for real-time status updates
  • Better for the environment
  • IATA e-freight will eliminate more than 7,800
    tonnes of paper documents, the equivalent of 80
    Boeing 747 freighters

In various locations, airlines now have improved
electronic arrival alert mechanisms. That means
that freight forwarders no longer have to go to
the airline or GHA arrival counter to be notified
of freight receipt.
14
IATA e-freight Specific Benefits
  • Document Processing Costs
  • 20 documents will be replaced with electronic
    messages by removing 64 of the paper volume
  • A reduction in the cost of document processing
    across the supply chain from USD 40 per house
    shipment to USD 25 per shipment
  • This equates to cost saving US 1.73 billion
    across the supply chain, i.e., shipper, forwarder
    and airline
  • For a typical self handled airline this can mean
    US9 saving per consignment or US2-5 m per annum
  • For a typical freight forwarder this can mean a
    saving of US14 per consignment
  • For a shipper this can mean US7 saving per
    consignment

15
IATA e-freight Specific Benefits
  • Delivery Time
  • Assuming 100 e-freight, the worldwide value of
    goods shipped is predicted to be US 6,377
    billion
  • IATA e-freight will allow the reduction of an
    average of 24 hours in transit time
  • This translates into the release of US 17
    billion of capital - the value of goods shipped
    in a day
  • Assuming a 5 return on investment, this
    translates into shippers savings of US 870
    million per year

In Dubai, with no paper, theres no need to queue
at customs counters. Fees can be paid through
electronic debit, saving time.
In Amsterdam, freight forwarders are now able to
bring freight directly to the delivery dock
instead of via the document centre. This saves
30-60 minutes from the usual process, which means
that truck drivers can be engaged for shorter
time periods.
16
IATA e-freight Specific Benefits
  • Inventory Savings
  • The value of the inventory kept as "buffer stock"
    is 12 of the value of goods sold
  • Of this "buffer stock", 25 is held because of
    the unreliability of the logistics chain
  • The assumption is that, improvements in
    reliability due to the adoption of e-freight will
    reduce the overall "buffer stock" that is
    required to be kept by 22
  • The benefit to shippers will be US 1.74 billion
    per annum

Goods Sold
12 buffer stock
25 of this is due to theunreliability of the
logisticschain
IATA e-freight will reduce this by 22
17
IATA e-freight Specific Benefits
  • Reduced Customs Penalties
  • Electronic one time date entry is more accurate
    as less prone to errors
  • As customs penalties are often due to improper
    data entry, assumption is IATA e-freight will
    reduce customs penalties by 25
  • Benefit to the industry is US 200 million per
    annum

18
IATA e-freight Specific Benefits
  • Increased Market Share
  • IATA e-freight implementation will make the
    industry more competitive through improved speed
    and reliability
  • Resulting in a conservative 1 market share
    increase over other modes of transportation
  • Benefit to the industry is US 1.78 billion per
    annum

19
IATA e-freight Specific Benefits
  • Regulatory compliance and increased security
  • IATA e-freight meets international and local
    regulations relating to the provision of
    electronic documents and data required by
    customs, civil aviation and other regulatory
    authorities
  • Electronic documents restrict availability of
    data to parties who require them for the
    completion of the transportation

20
IATA e-freight How to get involved
  • Download the IATA e-freight handbook - available
    for free at http//www.iata.org/stbsupportportal/e
    freight/materials/
  • Comprehensive guide to e-freight implementation
  • Also on the web is all the latest project
    information, including country status and lists
    of companies participating
  • Contact your supply chain partners already
    involved and start planning your implementation
    on live trade lanes
  • To find who is currently involved, visit the IATA
    e-freight homepage
  • To find out more or provide feedback, contact
    IATA at IATAefreight_at_iata.org.

21
Thank you!
http//www.iata.org/stbsupportportal/efreight
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