100% e-awb. The Way Beginning of e-commerce for Air Cargo. International Air Cargo Association of Chicago April 9, 2013

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Allan Scott
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1 100% e-awb The Way Beginning of e-commerce for Air Cargo International Air Cargo Association of Chicago April 9, International Air Transport Association 2013

Digitization offers the potential for the air cargo industry to make great strides in pushing efficiency and customer convenience What you connect is what you get!

2 Digitization offers the potential for the air cargo industry to make great strides in pushing efficiency and customer convenience What you connect is what you get! Relevant information is ready and available in digital format Stakeholders in the supply chain are part of the game Creates integrated digital information flow along the supply chain From A to Z 2 International Air Transport Association 2013

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7 What is the Air Waybill? The Air Waybill (AWB) is the contract of carriage between the shipper (e.g. forwarder) and the carrier (airline) It is also called paper AWB. 7 International Air Transport Association 2013

A bit of history of the paper AWB It is governed by IATA Resolution 600a The Air Waybill The Air Waybill Conditions of Contract are printed on the reverse side of the AWB as per

8 A bit of history of the paper AWB It is governed by IATA Resolution 600a The Air Waybill The Air Waybill Conditions of Contract are printed on the reverse side of the AWB as per IATA Resolution 600b When produced on paper several copies are required - Color being optional Warsaw convention mandates the paper AWB 8 International Air Transport Association 2013

9 Time has come for e-awb The e-awb is an electronic cargo contract that is an alternative to the paper AWB contract The electronic AWB (e-awb) simplifies the air cargo process for all parties including Regulators: removes the requirement for a paper AWB one time data entry no need to print, handle or archive the paper AWB contract The e-awb is specified in the IATA Recommended Practice (RP) International Air Transport Association 2013

The industry jointly developed e-awb Developed with industry in 2008 and 2009 Endorsed by the FIATA (International Association of Freight Forwarders Associations) Adopted by IATA Cargo

10 The industry jointly developed e-awb Developed with industry in 2008 and 2009 Endorsed by the FIATA (International Association of Freight Forwarders Associations) Adopted by IATA Cargo Services Conference in March 2009 as Recommended Practice 1670 Filed by Governments and successfully implemented by many airlines and forwarders 10 International Air Transport Association 2013

11 IATA Cargo Committee airlines are leading e-awb by example in their home country hub 100 to 75 % 75 to 20 % 20 to 1 % 11 International Air Transport Association 2013

12 Remaining days of paper AWB are counted 2013: 20% e-awb where feasible* (for the USA 25%) 2014: 50% e-awb where feasible* 2015: 100% e-awb where feasible* * Feasible: 2012: On MP4 and MC99 routes 2013: On MP4 and MC99 routes AND on routes between TW and MP4 or MC99 countries 12 International Air Transport Association 2013

13 e-awb is on its way but there is still a long way to go 13 International Air Transport Association 2013

14 e-freight vision 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 14 International Air Transport Association 2013

e-freight scope Shipper Origin Freight Forwarder 1. Invoice 2.

House Waybill 9. House Manifest 10. Export Goods Declaration 11.

Security Declaration* Carrier Ground Handler 13.

Export Cargo Declaration 16. Import Cargo Declaration 17.

15 e-freight scope Shipper Origin Freight Forwarder 1. Invoice 2. Packing List 3. Certificate of Origin 4. Letter of Instruction 5. Dangerous Goods Dec. 6. CITES Certificate* Export Customs Ground Handler 7. Air Waybill 8. House Waybill 9. House Manifest 10. Export Goods Declaration 11. Customs Release Export 12. Security Declaration* Carrier Ground Handler 13. Flight Manifest* 14. Freight Booked List* 15. Export Cargo Declaration 16. Import Cargo Declaration 17. Transfer Manifest 18. Transit Declaration* Import Customs Destination Freight Forwarder Consignee 19. Import Goods Declaration 20. Customs Release Import 15 International Air Transport Association 2013

16 e-awb paves the way for e-freight Benefits & Shipments e-freight e-awb Now Number of documents & Complexity 16 International Air Transport Association 2013

17 Cathay Pacific in Hong Kong shows that e-awb was the first step to increase e-freight volumes CX and Hong Kong e-freight Shipment Trend Number of e-freight Shipment CX Hong Kong - CX cutover 100% e-awb in HKG on Jan

18 Why do e-awb? 18 International Air Transport Association 2013

All involved parties benefit from e-awb Reduction in processing cost due to the removal of paper AWB Greater accuracy of AWB data Reduction in cargo handling delays due to missing or illegible paper

19 All involved parties benefit from e-awb Reduction in processing cost due to the removal of paper AWB Greater accuracy of AWB data Reduction in cargo handling delays due to missing or illegible paper AWB Elimination of the requirements to file paper AWB Real-time access to AWB information for all personnel from all locations First step towards a paper free air cargo 19 International Air Transport Association 2013

20 Benefits of e-awb (Case study with a major airline) Airlines Increase productivity Eliminate operational tasks Eliminate double keyboarding and reduce number of manual errors Eliminate risk of losing documents Process shipments faster Increase quality of information Reuse customer data in an automated way Improve data accuracy, integrity, validity, consistency, criticality and information completeness Reduce costs Respond faster to regulator bodies Reduce storage costs by eliminating paper documents and free up office space Reduce cycle time Perform pre-clearance to the customs Submit data with better quality to customs Contribute to the advanced reporting requirements Improve customer service Provide an improved & efficient service to the freight forwarder by simplifying their paper handling work and reducing their downtimes Pro-actively alert freight forwarder on document issues to let them adjust quickly and ensure loading of cargo as scheduled 20 International Air Transport Association 2013

21 e-awb BENEFITS Paper AWB Estimated Time per Task -50% +100% - 90% - 95% - 90% - 90% e-awb 21

22 Benefits of e-awb (Case study with a major freight forwarder) Freight Forwarders Increase productivity Eliminate operational tasks and risk of losing documents Save time by not waiting and queuing anymore at acceptance carrier s counters Save time in correcting mistakes Streamline process: remove paper process on top of current electronic data exchange Improve customer service Eliminate the management of discrepancies due to missing documents Handle urgent shipments with ease Provide immediate answer to customer via digital data access Facilitate customs clearance and speed up goods delivery Reduce costs Reduce storage costs by eliminating paper documents and free up valuable office space Eliminate costs of paper destruction and recycling in e- freight environment Eliminate need to purchase neutral AWB Reduce printing costs Increase quality of information Improve data accuracy, integrity, validity, consistency, criticality and information completeness Use of electronic data instead of paper that can be lost 22 International Air Transport Association 2013

23 Benefits of e-awb Customs Increase productivity Capability to automate processing Capability to access data prior to the arrival of physical shipment, contributing to the advanced reporting requirements Reduce need to key in data Increase quality of information Reuse custom data in an automated way Improve data accuracy, integrity, validity, consistency, criticality and information completeness Enable data sharing with other government agencies Reduce costs Reduce storage costs by eliminating paper documents and free up office space Reduce manpower costs related to handling paper and keying of information Increase level of security Capability to detect automatically inconsistency between documents Capability to automatically capture security related data 23 International Air Transport Association 2013

On-line e-awb / e-freight case studies Case studies have been made on the airline and forwarder side It describes the as-is and to-be situations highlighting

24 On-line e-awb / e-freight case studies Case studies have been made on the airline and forwarder side It describes the as-is and to-be situations highlighting benefits Some more case studies may be conducted in the near future You can find this case study on the e-awb website 24 International Air Transport Association 2013

25 The engines must be in place for e-awb Front (600a) Reverse (600b) Paper AWB + e-awb Electronic messages + Signed e-awb agreement 25 International Air Transport Association 2013

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37 Next Steps 37 International Air Transport Association 2013

38 Next steps 1. Ensure your are ready for e- AWB 2. Identify your stakeholders that are ready to start 3. Run e-awb pilots with some stakeholders 4. Increase e-awb penetration to get benefits 5. Sign the multilateral agreement! 38 International Air Transport Association 2013

39 I never worry about action, but only about inaction Winston Churchill 39 International Air Transport Association 2013

40 Thanks! More information Questions at e-awb on-line training More than 400 Industry Stakeholders already completed the e-awb training at: 40 International Air Transport Association 2013

IATA s Initiatives. To help the Air Cargo Industry in a Fragile Economic Context

IATA s Initiatives. To help the Air Cargo Industry in a Fragile Economic Context IATA s Initiatives To help the Air Cargo Industry in a Fragile Economic Context 1 International Air Transport Association 2013 Economic Outlook 2 International Air Transport Association 2013 Economic Outlook