IATA efreight

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IATA e-freight
Simplifying the Business
Phase II - 2005
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IATA e-freight is a priority for the industry

• As part of Simplifying the Business, IATAs Board
  of Governors have mandated a Global Cargo
  Paperless Environment project designed to remove
  all the paper for all stakeholders from air cargo
  transportation by 2010,
• with a "fast-track" programme to accommodate
  those parties who are able to free their supply
  chain processes from paper by 2007. This project
  is now called IATA e-freight.
• The project has the full support from the
  industry

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Todays air cargo process is complex and involves
many participants
cont next page
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Todays air cargo process is complex and involves
many participants (cont)
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IATA e-freight documents

• Today there are several problems with the manual
  creation and handling of paper documents
• Missing / incomplete documentation
• Slows down the process
• Customs holds and snagging
• Security aspects from customs regarding time and
  quality
• Documents accompany the freight
• Handover points
• Duplication
• Manual

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IATA e-freight business vision

• The IATA e-freight team is currently agreeing on
  the business vision, short and long term scope
  with the industry

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IATA e-freight objectives

• Eliminate the need to produce and transport paper
  documents for air cargo shipments by moving to an
  industry-wide, simpler, electronic, paper-free
  environment
• Targets
• early adopter implementation by end 2007,
  enabling electronic handling of all typical
  documents for general cargo at the 20 largest
  Gateways (based on volume) globally
• Full global implementation by end 2010 to reach
  up to 95 of total global air cargo volume, for
  all air cargo
• Multi-modal in cargo including Maritime, Rail and
  Road to have one standard process at piece level,
  beyond 2010

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IATA e-freight expected benefits

• Improve process efficiencies from reduced manual
  errors in creating and manually reconciling
  documents
• Faster and more accurate information flow
• Reduction in delivery time for air freight
• Reduced levels of inventory held in the supply
  chain
• Greater customer satisfaction
• Reduced cost of paper processing
• Common data and communication standards will
  simplify the cargo industry
• Better cash flow and reduced working capital

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IATA e-freight key assumptions (in process of
industry validation)

• Average of 38 documents per shipment at a paper
  production and processing cost of US30
• Early adopter implementation (end 2007) will
  generate savings of US800 million per year
• Industry savings will be US1.2 billion per year
  when fully implemented (2010)
• Paper used in processing shipments every year
  could fill 39 747-400 freighters
• 35 million MAWB (2004)
• 25 years ago it took 6.5 days on average to send
  a shipment internationally, today this average
  has not significantly altered

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IATA e-freight engaging stakeholders

•  IATA has formed an Industry Action Group
  representing air cargo stakeholders made up of
  Airlines, World Customs Organization, Freight
  Forward International and Cargo2000
• The process is complex with more then 15 000
  stakeholders including
• 270 carriers
• 200 national customs bodies
•  More then 10 000 freight forwarders
• At least 20 large industry bodies

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IATA e-freight industry change

• IATA e-freight is a business change programme
  which IATA will facilitate by enabling
• Process simplification
• Industry e-freight standards
• Legal regulatory standards to be addressed
• As a business change programme IATA e-freight
  will deliver quick hits in the above 3 areas

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IATA e-freight achievements so far

• Business Process Workshops held with the industry
  (i.e. forwarders, carriers, customs probably an
  industry first) As-Is, To-Be Scope defined
• Engagement and alignment of IATA e-freight
  stakeholders, Freight Forwarder International
  members, Cargo 2000 (C2K), Cargo Committee (CC),
  Industry Action Group (IAG), World Customs
  Organization (WCO)
• Project Office detailed roadmap
• Technical Cargo Industry Systems Audit

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IATA e-freight achievements by end 05

• Pilots
• Countries, carriers, forwarders, customs
  participants agreed
• Solutions
• Define customer requirements
• RFI and RFP processes conducted
• Technical Solution selected
• Early adopters ready to confirm commitment by
  January 2006 to implement
• Industry awareness mobilisation
• IATA e-freight Conference, 1-3 Nov, GVA

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IATA e-freight challenges

• Industry buy-in to technical direction
• Definition Even though the logical conclusion is
  that one common data exchange should be the
  solution, the air cargo industry needs to
  embrace the business change, the technical
  solution supports
• Action Take industry with us via business change
  approach. Use this approach to agree technical
  direction based on options available in order to
  achieve Dec 2007 target. Request For Information
  (RFI) process will enable independent technical
  options to be identified.

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IATA e-freight challenges

• Industry engagement across the supply chain
• Definition Whilst e-freight will be IATA led, it
  is critical that all stakeholders in the air
  cargo industry are engaged with the IATA
  e-freight project
• ActionExtension of IAG to include FFI/C2K and
  WCO (done). Alignment of airline CEO and Head of
  Cargo commitment to IATA e-freight.

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IATA e-freight challenges

• Customs commitment to IATA e-freight
• Definition Customs present both challenge and
  opportunity as a force for change
• Action
• Sell benefits of IATA e-freight to customs (e.g.
  better online information for security risk
  assessment)
• Joint forwarder and carrier approach to customs.
• Identify early adopter customs as part of pilot
  definition.

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IATA e-freight challenges

• Preparing to realise the benefits
• Definition IATA e-freight participants
  commitment and capability to re-engineer business
  processes, realising full e-freight benefits
• Action
• Clarify the fit between Cargo2000 (phase 3) and
  IATA e-freight

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StB Support Portal

• To launch the portal, go to
• http//www.iata.org/whatwedo/simplibiz1

Click on the StB Support Portal button