Technology and Standards
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1 Technology and Standards CNS PARTNESHIP CONFERENCE Frederic Leger, Head Cargo Process & Standards, IATA 2011, Phoenix, Arizona, May 3rd
2 Panel Sandra A. Scott, Senior Director, SEKO Worldwide Mark Laustra, Vice President, Smiths Detection Inc. Felix Keck, Managing Director, Traxon Jeff Wells, President and CEO, Franwell 2
3 Technology: Usage and knowledge of tools, techniques, crafts, systems or methods of organization in order to solve a problem or serve some purpose. Source: Wikipedia Standard: Universally or widely accepted, agreed upon, or established means of determining what something should be. 3 Source: BusinessDefinition.com
4 What are we using today (i.e. in 2011)? Does it bring value to the Industry? Where are we going to be in 10 years (i.e. in 2020)? Is it realistic? 4
5 Life Cycle Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases 0% st draft / discussion Publication Optimum Obsolete Sunset Time Milestones
6 Items of Discussion 1. e-cargo e-awb, e-pouch, e-customs, XML, e-freight 2. Unit Load Devices 3. Track & Trace Bar codes, RFID 4. Security & Compliance Physical screening, advance electronic information 6
7 MC99 allows for the replacement of a paper AWB by an e-awb IATA and FIATA developed jointly the e-awb IATA adopted e-awb standard as Recommended Practice 1670 Governments around the world filed Recommended Practice 1670 IATA Members endorsed the target of 100% e-awb by end of
8 Life Cycle -e-awb Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases e-awb Paper AWB 0% st draft / discussion e-awb Paper AWB Publication Optimum Obsolete Sunset Time Milestones
9 Today a pouch (paper envelop) with commercial documents (e.g. invoice, packing list) is accompanying the shipments and may be used by Customs in case of examination The Revised Kyoto Convention permits the lodgment of supporting documents by 9 electronic means and IT service providers offer e-pouch concepts with online access
10 Life Cycle -e-pouch Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases e-pouch Paper Pouch 0% st draft / discussion e-pouch Paper Pouch Publication Optimum Obsolete Sunset Time Milestones
11 Customs are often asking for goods declarations and cargo declarations in paper Revised Kyoto Convention allows for electronic declaration and the WCO defined a standard for advance electronic information aligned with IATA standard messages Many countries or regions have an e-customs program in place and the WCO is 11 investigating a Globally Network Customs (GNC) concept
12 Life Cycle - e-customs Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases e-customs Paper Declarations 0% 2011 Globally Network Customs 1 st draft / discussion e-customs Globally Network Customs Paper Declarations Publication Optimum Obsolete Sunset Time Milestones
13 Today freight forwarders, airlines and handlers are using IATA Cargo-IMP messages to exchange electronic messages (Resolution 670) Some limitations have been identified with Cargo-IMP (technology of the 70s ) such as limited flexibility, high development costs and proprietary standard The industry endorsed the move toward XML and the fact that IATA will stop maintaining Cargo-IMP by end 2014 The Cargo-XML Task Force developed standard XML messages to reduce costs, facilitate communication over internet and increase 13 adoption by all parties
14 Life Cycle - Cargo-XML Messages Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases Cargo-IMP Cargo-XML Cargo-IMP 0% st draft / discussion Cargo-XML Publication Optimum Obsolete Sunset Time Milestones
15 E-Freight removes 12 core documents from the supply chain: 4 transportation documents with e-awb mandatory as of commercial documents with e-pouch as an option 6 customs documents with e-customs programs E-freight is live in 44 countries, 98 airports and 500+ trade-lanes It already involves 30 airlines and freight forwarders IATA Standard Cargo-IMP or Cargo- XML can be used as well as images IATA Board endorsed the target of 100% e-freight by end of
16 Life Cycle -e-freight Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases e-customs e-awb e-pouch Cargo-XML e-freight e-customs e-freight 0% Cargo-XML e-pouch e-awb 1 st draft / discussion Publication Optimum Obsolete Sunset Time Milestones
17 Light weight container Collapsible container Active temperature control ULD Today the industry is using Unit Load Devices (ULDs) such as pallets or containers but more advanced ULDs are now available 1. Light weight containers at 55Kg /121Lbs enabling weight reduction 2. Active temperature control ULDs for precise temperature shipments 3. Collapsible containers reducing storage and shipping space The industry developed some new standards for ULD storage & handling, airworthiness, training, transport and buildup/breakdown 17
18 Life Cycle - Advanced ULDs Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases Active temperature control ULD Light weight containers 0% 2011 Collapsible container Light weight containers Collapsible container 1 st draft / discussion Active temperature control ULD Publication Optimum Obsolete Sunset Time Milestones
19 Today bar coded labels are broadly used in the industry Bar coding provides the ability to track packages faster and more accurately Bar coded label may be attached to each package Standard bar coded label (reso. 606) contains mandatory information : Airline name AWB number Destination Primary bar code 1D bar code is the existing recommended practice (vs. 2D) 19 Examples of 2D bar code
20 A standard for Radio Frequency Identification (RFID) has been defined in early 90 s to track and trace ULDs (rec. practice 1640) Industry adoption has been so far very slow due to the costs of the tags, readers and sensors as well as the manual labor to (de)activate tags when (un)loading ULDs RFID Technology has evolved, costs went down, automatic (de)activating of tags is now possible Industry will be reviewing the RFID standard to match latest developments as interest is growing for ULD and piece level tracking 20
21 Life Cycle - Bar Coded Label & RFID Benefits / Penetration 100% Conception Deployment Maturity Decrease Removal Phases RFID at piece level RFID on ULD e-pouch 1D Bar Coded Label 1D Bar Coded Label 0% D Bar Coded Label 1 st draft / discussion RFID on ULD RFID at piece level Publication Optimum Obsolete Sunset Time Milestones
22 Electronic Metal Detection (EMD) X ray Device Explosive Trace Detection (ETD) Security is a critical element the of the air cargo supply chain that is vital to world trade Air cargo has an excellent track record on security but following the October 2010 event regulators are willing to further secure the air cargo supply chain Physical screening is important, but should be coupled with risk assessment (advance electronic information) and intelligence Screening technology needs to be fast, reliable, automated and able to handle large volumes 22
23 Life Cycle Benefits / Penetration - Screening Technology - Intelligence 100% Conception Advance Elect. Information Elect. Security declaration Deployment Maturity Decrease Removal Automated Data fusing Advanced X-Ray, Trace, MD Phases Manual Data fusing Advance Elect Information Elect. Security declaration Automated Data fusing 0% st draft / discussion X-ray, trace, MD Publication Optimum Obsolete Sunset Manual Data Fusing Time Milestones
24 Questions & Answers 24
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