IATA Asia-Pacific Cargo Updates. 4 th Jun 2010, FAPAA ECM

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1 IATA Asia-Pacific Cargo Updates 4 th Jun 2010, FAPAA ECM

2 Agenda Update on IATA e-freight in Asia-Pacific Introduction to IATA e-awb Update on CASS activities in Asia-Pacific

3 IATA Cargo Agenda Protect the Cash Deliver quality at lower cost CASS Transform the Supply Chain IATA e-freight, Secure Freight, Cargo 2000 Deliver and Manage Supply Chain standards e-awb Create value to the Supply Chain with relevant Products and Services CargoIS

4 IATA e-freight Update

5 IATA e-freight - Vision and Board Mandate IATA Board mandate for end 2010: Establish EF capability in all feasible locations 2010 targets as promulgated by IATA Board: By end 2010, EF in 44 locations and 76 airports representing more than 80% of global cargo By end 2010, EF in 5 domestic markets representing 86% of domestic cargo Implement 20 electronic document standards

6 EF international capability - Need 20 locations Area 3 (3 locations) Area 2 (17 locations) Area 1 (2 locations) India and Thailand (under DLA) China live Finland live Belgium and Czech Republic live one way Austria, Hungary, Malta, Slovakia and Slovenia started implementation Ireland Israel, Italy, Portugal, implementation in Q3 Cyprus, Estonia, Romania implementation in Q3/Q4 Kenya (LAP) implementation in Q4 Chile live Mexico LAP

7 EF capability - Major Airports for major airports implemented by end of 2010 is target At end of 2009 we were at 48 major airports Including 20 major airports as part of the new country airports that will be implemented by IATA takes us to 68 This means we need to implement at least 8 major additional airports in 2010 Candidates include: DUS; HAM; MUC; STR; SZG; LNZ; FCO; LPA; TFN; GVA; GLA; BHX YYC KIX ATL; DFW; LAX; MIA

8 EF domestic capability targets Area 3 (2 locations) Area 2 (Not applicable) Area 1 (2 locations) China implementation underway (go live August) Japan (no value proposition) US live March Canada Quarter 4

9 IATA e-freight update IATA e-freight Scorecard as of April 2010: Live in 25 locations More than 125 airports Over 200 stakeholders (airlines & freight forwarders) More than 3000 trade lanes

10 IATA e-freight International Volumes Overall market penetration approx 0.54%

11 IATA e-freight s Top 10 at April 2010 (international)

12 IATA e-freight Domestic Volumes South Korea Domestic Starts US Domestic Starts

13 IATA e-freight s Top 10 at Apr 2010 (domestic)

14 Key Catalysts for IATA e-freight Freight Forwarder adoption Implementation of e-awb will help Ensure there is available and affordable technology Strategic Partnership Program Customs support is critical WCO has publicly endorsed e-freight Singapore and Korea publicly endorsed in Memorandum of Understanding with IATA and local stakeholders with programs to support industry 14

15 Electronic Air Waybill (e-awb)

What is e-awb? The Air Waybill (AWB) is a critical air cargo document that constitutes the contract of carriage between the shipper (forwarder) and the carrier (airline).

16 What is e-awb? The Air Waybill (AWB) is a critical air cargo document that constitutes the contract of carriage between the shipper (forwarder) and the carrier (airline). The new Electronic Air Waybill recommended practice (e-awb RP1670) removes the requirement for a paper Air Waybill, significantly simplifying the air freight supply chain process. With the e-awb, there is no longer a need to print, handle or archive the paper AWB 16

Benefits of e-awb Reduction in processing cost due to the removal of paper AWB Greater accuracy of air waybill data Reduction in cargo handling delays due

17 Benefits of e-awb Reduction in processing cost due to the removal of paper AWB Greater accuracy of air waybill 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 17

18 Current Status for e-awb Developed throughout 2008 and 2009 collaboratively with industry stakeholders, in particular with FIATA Adopted by the IATA Cargo Services Conference as the IATA Recommended Practice 1670 Governments adopted and filed the IATA Recommended Practice 1670 e-awb Proof of Concepts have been implemented successfully on trade lanes (HKG/AMS/ARN) 18

19 How does e-awb work? The process flow of e-awb allows two options: Immediate Cargo Receipt Delivery Deferred Cargo Receipt Delivery 19

20 e-awb: Process Overview Immediate Cargo Receipt 1. Shipper sends FWB prior to delivery 2. Shipper presents the freight to the airline 3. Airline, upon delivery, accepts the freight as ready for carriage * 4. Airline sends the FSU/RCS concluding the Cargo Contract 5. Airline produces the Cargo Receipt in paper 6. Airline uploads the cargo and flies it to destination Step 1 Step 2 Step 3 * If it deviates from the FWB, the shipment shall be treated according to the exception management procedures previously agreed between the Parties

21 ** In lieu of a Warehouse Receipt, the Carrier may verify the information on and counter-sign the Shipper's Delivery Note e-awb: Process Overview Deferred Cargo Receipt 1. Shipper sends FWB prior to delivery 2. Shipper presents the freight to the airline 3. Airline receives the freight as freight on hand * 4. Airline produces the Warehouse Receipt** in paper 5. Airline accepts the freight as ready for carriage * 6. Airline sends the FSU/RCS concluding the Cargo Contract and makes available the Cargo Receipt 7. Airline uploads the cargo and flies it to destination Step 1 Step 2 Step 3 Step 4 * If it deviates from the FWB, the shipment shall be treated according to the exception management procedures previously agreed between the Parties

22 Where can e-awb be used? Can only be implemented on trade lanes between origin and destination countries that have both ratified the same international treaty, either MP4 or MC99 (ICAO web site: In addition, local Customs authority who ask for the AWB must accept e-awb or a printout of e-awb in lieu of paper AWB The above acceptance exists in least all the locations (countries) where IATA e-freight is already implemented For additional locations (no IATA e-freight), the above acceptance should be investigated by individual stakeholders prior to implementation 22

23 IATA Adoption of e-awb IATA Cargo Committee endorsed targets on the move to 100% e-awb adoption by 2014 For 2010, IATA has proposed for e-awb to be adopted between at least one freight forwarder and one airline in at least 8 locations by end of Targeted locations are: AE, CA, ES, HK, KR, NL, SG, UK IATA will identify and communicate interim targets from 2011 to 2014 in due course 23

How to implement e-awb? Step 1: Identify critical technology enhancements to support e-awb Step 2: Develop e-awb Standard Operating Procedure (e-awb SOP).

24 How to implement e-awb? Step 1: Identify critical technology enhancements to support e-awb Step 2: Develop e-awb Standard Operating Procedure (e-awb SOP). The SOP provides step-by-step instruction needed to handle e-awb shipments Step 3: Sign an e-awb agreement with your forwarder business partners. Whenever possible this agreement should be signed at corporate level to eliminate the need to have multiple local agreements 24

25 How to implement e-awb? Step 4: Provide details of the signed e-awb agreement to IATA Step 5: Prepare for e-awb roll-out. Some key activities to ensure a smooth transition: Train all personnel who will be involved in the day-to-day handling of e-awb shipments Prepare contingency plan to minimize disruption to day-to-day process in case of go-live issues Step 6: Start your first e-awb shipment 25

Information on e-awb All documents and info to start e-awb are freely available for download on the IATA corporate web site: www.iata.

26 Information on e-awb All documents and info to start e-awb are freely available for download on the IATA corporate web site: The e-awb Functional Specification, e-awb Model Agreement, e-awb Quick Reference Guide and other accompanying documents on the website are your starting point. Upon request, the IATA Cargo team can also help you with expert advice. Please write to: 26

27 e-awb and IATA e-freight IATA e-freight removes 12 core paper documents from air cargo transportation process (with an additional 8 optional documents) In locations with e-freight implemented, the paper AWB is used at origin as evidence of contract of carriage (but not transported to destination) With the e-awb, full elimination of the paper AWB is now possible for e-freight shipments IATA targets by end of 2011, the implementation of the e-awb will be mandatory for all e-freight shipments 27

28 IATA CASS Update

Snapshot of Activities in Asia-Pac CASS Export CASS Import e-freight Secure Freight SG Completed Completed Completed MY Completed Completed By 2010 ID Completed TH Completed By 2010 PH Completed VN

29 Snapshot of Activities in Asia-Pac CASS Export CASS Import e-freight Secure Freight SG Completed Completed Completed MY Completed Completed By 2010 ID Completed TH Completed By 2010 PH Completed VN By 2010 AU Completed Completed Completed PG Completed FJ Completed NC Completed PF Completed NZ Completed Completed VU Completed JP Completed Completed Completed KR Completed By 2010 Completed IN LK BD Completed PK Completed By 2010

30 IATA CASS Update IATA CASS Scorecard Both Global and Asia Pacific Global Operations SCUs (Million) Settlement (USD Billion) ASPAC Operations SCUs (Million) Settlement (USD Billion) Numbers will pick up in 2010.

31 IATA CASS Update in Asia-Pacific No change to Regional Focus: Expanding CASS Activities Delivering System Quality Coverage Extended in 2009 Launch of 2 CASS Export: Vanuatu & Pakistan Launch of 2 CASS Import: Singapore & Australia Targeted Activities in 2010 Implement CASS in Vietnam by Q Continue CASS growth in Indonesia, Bangladesh & Pakistan

32 Thank you

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

100% e-awb. The Way Beginning of e-commerce for Air Cargo. International Air Cargo Association of Chicago April 9, 2013 100% e-awb The Way Beginning of e-commerce for Air Cargo International Air Cargo Association of Chicago April 9, 2013 1 International Air Transport Association 2013 Digitization offers the potential for