Simplifying the Business. IATA e-freight Francisco Batáglia Cargo Manager Portugal & Spain

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1 Simplifying the Business IATA e-freight Francisco Batáglia Cargo Manager Portugal & Spain 1

2 Simplifying the Business E-Ticketing Bar Coded Boarding Passes (BCBP) Common use Self Service Check-IN (CUSS) Radio Frequency Identification (RFID) IATA E-Freight 2

3 The e-freight challenge in passenger speak e-freight = e-ticket + e-passport for a customer who can neither walk nor talk 3

4 IATA e-freight: key assumptions Average of 38 documents per shipment at a paper production and processing cost of US$30 Industry savings will be US$1.2 billion per year when fully implemented Paper used in processing shipments every year could fill freighters More than 37 million MAWB yearly 25 years ago it took 6.5 days on average to send a shipment internationally, today this average has not significantly altered 4

5 IATA e-freight: Purpose Why are we doing this? Industry processes remain largely paper dependent Missing or incorrect documentation slows progress through the supply chain Keeping documents & freight in sync is complex and costly Multiple parties capturing the same data is inefficient and error prone We need to create a Paper-Free environment 5

6 IATA e-freight: Key Definitions Paperless Defined as no requirement to produce or transport any paper documents for any purpose at any time (primary and secondary process) Paper Free Defined as an environment in which industry does not need to transport paper in parallel with the freight, but there may be a requirement to produce this paper in original, copy or printed e-document form for some authority or process. IATA e-freight: Delivers a paper-free industry to reduce paper-work (i.e. cost of processing paper, including data quality). IATA e-freight is not paper-less. 6

7 IATA e-freight: Summary What is it? A joint air cargo industry program of carriers, forwarders and customs, led by IATA. Industry Action Group (IAG) formed which serves as a steering and advisory group. What is our approach? Business change supported by automation. Joining forces: IATA, WCO, UN, FFI, Cargo 2000, e-freight solutions providers. Proof of Concept through a series of pilot programs starting in 2007 Participation of all parties on country level 7

8 IATA e-freight: Summary What are the benefits? Faster and more accurate information flows, can reduce the time freight spends on the ground and allow customs to carry out advance risk assessment. Simplification by maximizing use of common data and communication standards thus reducing the dependency on paper as primary source of information. 1.2b US$ air cargo supply chain cost saving, driven by 80% reduction in cost of paper-work Enhanced ability to meet security requirements and avoid non-compliance penalties. 8

9 IATA e-freight: Status Revised objective to secure commitment from 5 countries for 2007 implementation for general cargo. e-freight strategy document published on the StB Support Portal. Vendors Information Pack has been distributed to nearly 300 potential e-freight system providers. Potential 1 st wave pilot countries have been identified and a commitment meeting schedule planned. A Message Improvement Program is under development. 9

10 IATA e-freight: Pilot Implementation Plan Top Down 5 e-freight target pilots in 2007 to be chosen from Australia, Canada, China, Hong Kong, Netherlands, New Zealand, Singapore, Sweden, Taipei and the United Kingdom. Government commitment meetings to take place between September and November. Each country pilot will be governed by an e-freight management group. Local implementation activities will commence in Pilot Countries in Pilots will act as proof of concept, demonstrate value, validate assumptions, feedback into the process and become business as usual. 10

11 IATA e-freight: project structure The Project is divided into three Streams Business Stream; Facilitates local implementation plans, process, IATA e-freight business requirements and other IATA e-freight business process related matters Legal Stream; Facilitates the identification of legal, governmental, regulatory, and treaty issues and the generation of solutions for the same. Supports the IATA e-freight programme with legal analysis & advice Technical Stream; Facilitates technical direction and messaging standards, technical requirements, systems solutions and delivery, and other IATA e- freight systems related matters 11

12 4. The Trade and industry (carrier & forwarders) environment IATA e-freight: Country identification (for any country, document or freight segment) Process 5. Treaties Legal and legislative Framework Standards 3. Systems Principles 2. Procedures Legal and Governmental Framework 1. The Government and customs administration environment 12

13 IATA e-freight: Vendor Information Pack Objective is to identify a community of vendors who are committed to deliver global e-freight solutions to the industry, focussing on SME s. Provides a guide to the existing technical and industry business requirements for potential vendors: Solicits responses which will allow IATA to identify vendors who are committed to supplying e-freight enabling technology to the industry which will: Support the e-freight vision (Target date 2008) Support the Pilots (Target date 2007) Support e-messaging quality measurement (Target Date 2006/2007). 13

14 IATA e-freight: Message Improvement Program Bottom Up e-freight stakeholders must be confident in the quality of data in electronic messages. Participation in the program is a necessity for e-freight pilot stakeholders. Initial focus of the program will be to improve FWB and FHL quality and penetration, between forwarders and airlines. e-freight and Cargo 2000 are working together to ensure any data measurement synergies are maximized and duplication avoided 14

15 IATA e-freight: Participation Success = All working together towards a common goal Everyone in the supply chain has a role to play, including shippers You can start your own implementation process today Be a part of the solution not a part of the problem 15

16 IATA e-freight: How to stay connected! Click on the StB Support Portal button Updates FAQs Materials Log request for follow up StB enewsletter 16