Speed Dating for e-freighting. How e-freight works? Brussels, 19 April, Frederic Leger Head, Cargo Process & Standards IATA

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1 Speed Dating for e-freighting How e-freight works? Frederic Leger Head, Cargo Process & Standards IATA Brussels, 19 April, International Air Transport Association 2012

2 About IATA The International Air Transport Association (IATA) is the industry s global trade association Founded in 1945 with 240 members, in 118 countries, comprising 84% of international scheduled traffic Our mission is to represent, lead & serve the industry IATA delivers Standards and Solutions to ensure a safe and successful air transport In 2012, IATA Settlement Systems processed sales amounting to over US$282 billion to airlines 2 International Air Transport Association 2012

3 IATA vision for air cargo Safe, secure, reliable, efficient and profitable air cargo supply chain 3 International Air Transport Association 2012

4 IATA Cargo areas of activities Air Cargo Vision Safety (DGR, ULD) e-cargo (e-freight, e-awb, Cargo 2000) Security (Secure Freight, Multi layered approach) Distribution (CASS, Agency Accreditation) Sustainability (Industry profile Profitability Environment) Standards Metrics Solutions Commercial Customer Service Area 1 - Regional Managers Meeting Stakeholder Management

e-freight scope Shipper Origin Freight Forwarder 1.

Letter of Instruction 5. Dangerous Goods Dec. 6.

Air Waybill & Status Message* 8. House Waybill 9.

Flight Manifest* 14. Freight Booked List* 15.

Import Cargo Declaration 17. Transfer Manifest 18.

5 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 & Status Message* 8. House Waybill 9. House Manifest 10. Export Goods Declaration 11. Customs Release Export 12. Security Declaration* All Cargo XML messages available at: 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 19. Import Goods Declaration 20. Customs Release Import Destination Freight Forwarder Consignee 5 International Air Transport Association 2012

6 DOCUMENT TYPE ORGANISATION STANDARD (2010) MESSAGE 01 - Invoice IATA UN/CEFACT XML Invoice Standard Electronic Messages 02 - Packing List IATA UN/CEFACT XML Packing List 03 - Certificate of Origin IATA UN/CEFACT XML Certificate of Origin 4 - Dangerous Goods Decl. IATA CIMP & UN/CEFACT XML FDD & Shipper s Dec. for DG 5 - Letter of Instruction IATA UN/CEFACT XML Shippers Letter of Inst. (SLI) 6 - CITES Certificate CITES UN/CEFACT XML e-cites 7 - House Waybill IATA CIMP & UN/CEFACT XML FZB & House Waybill 8 - House Manifest IATA CIMP & UN/CEFACT XML FHL & House Manifest 9 - Air Waybill Status Update IATA IATA CIMP & UN/CEFACT XML CIMP & UN/CEFACT XML FWB & Waybill FSU & Status Update 10 - Flight Manifest IATA CIMP & UN/CEFACT XML FFM & Flight Manifest 11 - Transfer Manifest IATA CIMP & UN/CEFACT XML FSU (TFD&RCT) & Status 12 - Freight Booked List IATA CIMP & UN/CEFACT XML FBL & Freight Booked List 13 - Export Goods Declaration WCO EDIFACT & UN/CEFACT XML WCODEC & GOVCBR 14 - Customs Release Export WCO EDIFACT & UN/CEFACT XML CUSRES & GOVCBR 15 - Export Cargo Declaration WCO EDIFACT & UN/CEFACT XML WCOCAR & GOVCBR 16 - Import Cargo Declaration WCO EDIFACT & UN/CEFACT XML WCOCAR & GOVCBR 17 - Import Goods Declaration WCO EDIFACT & UN/CEFACT XML WCODEC & GOVCBR 18 - Customs Release Import WCO EDIFACT & UN/CEFACT XML CUSRES & GOVCBR 19 - Transit Declaration IATA EDIFACT & UN/CEFACT XML GOVCBR 20 - Security Declaration IATA CIMP & UN/CEFACT XML FWB & Waybill

7 e-freight overview 1. Development e-freight Route Network Network of countries and airports where it is possible to implement e-freight procedures 2. Digitalization of Core Transport documents e-awb e-house Manifest e-flight manifest 3. Digitalization of Accompanying Documents Concept of Electronic pouch 42 countries Over 200 airports 40% of global market ~ 4% e-awb penetration ~2% e-house Manifest penetration ~25% of e-freight shipments have no accompanying documents transported with the freight 7 International Air Transport Association 2012

8 The following criteria will be used by IATA to report e-freight consignments Category Special Handling Code Criteria to qualify in 2013 and beyond (e-awb mandatory for EF shipments) e-freight consignment with accompanying documents in paper format e-freight consignment with accompanying documents in electronic format EAP On e-freight trade lanes only Air waybill in electronic format without paper contract (e-awb) House Manifest in electronic format (e.g. FHL) but Paper House Manifest may be present at origin* Accompanying documents (e.g. invoice, packing list) in paper format EAW Same as above but accompanying documents (e.g. invoice, packing list) in electronic format * Unless a decision is made in 2012 to reintegrate House Manifest as full mandatory document starting in International Air Transport Association 2012

9 e-freight status 45, % 12.0% 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000-32, % 5.9% 25, % 4.1% 4.6% 4.7% 4.9% 5.4% 5.5% 20,926 21,906 18,09818,603 15,095 15,96916,393 14,210 12,73812,013 11,693 Dec 2010 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 Jul 2011 Aug % 7.4% 8.1% Sep 2011 Oct 2011 Nov 2011 Dec % 8.0% 6.0% 4.0% 2.0% 0.0% Volumes on 2010 trade lanes Penetration 2010 trade lanes 9 International Air Transport Association 2012

IATA standards and tools for e-freight Standard tools e-freight Self Assessment Questionnaire e-freight Project Status webpage MIP reports e-freight Handbook Presentations, Glossary of terms

10 IATA standards and tools for e-freight Standard tools e-freight Self Assessment Questionnaire e-freight Project Status webpage MIP reports e-freight Handbook Presentations, Glossary of terms Engagement GACAG e-commerce Statements e-freight in the Media GACAG CBP meeting media release e-freight Detailed Locations Status Report Reporting scorecards (R39, R17, R41) The e-freight Matchmaker (launched in 2012) Available at 10 International Air Transport Association 2012

11 e-freight objectives for 2012 Engage partners of GACAG in fully supporting the e-freight roadmap towards 100% e-freight Continue to develop industry e-freight capability in existing live locations Grow e-freight route network - priority Brazil, Russia, India, China Include e-awb as a mandatory component of each and every e-freight shipments 11 International Air Transport Association 2012

12 e-awb paves the way for e-freight Benefits & Shipments e-freight Now e-awb Jan 2013: e-freight mandates e-awb! Number of documents & Complexity 12 International Air Transport Association 2012

(600b) Governed by IATA resolutions e-awb Governed by IATA RP1670 Electronic

13 The Air Waybill (AWB) is the contract of carriage between the forwarder and the airline Paper Air Waybill Mandated by Warsaw convention Front (600a) + Reverse (600b) Governed by IATA resolutions e-awb Governed by IATA RP1670 Electronic messages + Signed EDI model agreement 13 International Air Transport Association 2012

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

14 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 13 airlines & 147 forwarders (Feb 2012) 14 International Air Transport Association 2012

15 e-awb uses the existing industry messages Ex.: Deferred Cargo Receipt Delivery Process Freight Forwarders ERP Web Service Providers Airlines ERP Prepare Consol Digital Documents Resolve Issues (with airline if any) Deliver Freight Re-Submit Data with Correct Information FWB/FHL e-pouch (invoice, packing list and other docs) FNA FMA FSU/FOH FWB/FHL FSU/RCS Receive Information Validate Information (data and scan) Identify Issues (with forwarder if any) Acknowledgement (with forwarder if any) Receive Freight Freight On Hand (produce warehouse receipt) Receive Correct Information Freight Acceptance (produce cargo receipt)

All stakeholders 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

16 All stakeholders 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 16 International Air Transport Association 2012

17 Benefits from e-freights and e-awb Freight Forwarders Increase productivity Eliminate many 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 Quicker access to electronic documents 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 No purchase of neutral paper AWB Reduce printing 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 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 17 International Air Transport Association 2012

18 e-awb is well on its way, but there is still a long way to go 18 International Air Transport Association 2012

19 IATA Cargo Committee airlines are leading e-awb by example in their home countries 100 to 70 % 70 to 20 % 20 to 1 % 19 International Air Transport Association 2012

The aim is to remove the paper AWB by the end of 2014 2011: 4% e-awb where feasible* 2012: 15% e-awb where feasible* 2013: 70% e-awb where

20 The aim is to remove the paper AWB by the end of : 4% e-awb where feasible* 2012: 15% e-awb where feasible* 2013: 70% e-awb where feasible* 2014: 100% e-awb where feasible* * Feasible: On routes where e-awb are legally accepted 20 International Air Transport Association 2012

21 95% of the worldwide cargo volume is moved in areas where e-awb is authorized Montreal Convention 99 (MC99) and Montreal Protocol 4 (MP4) allow the use of an e-awb in lieu of the paper AWB Paper AWB is REQUIRED on Warsaw trade-lanes Paper is required by certain Customs Administrations in MC99 & MP4 Countries Detailed information is available on IATA extranet (see tool section) Warsaw trade-lanes MC99/MP4 countries (accounting for 95% of the cargo volumes) Customs asking for paper AWB for each & every shipments 21 International Air Transport Association 2012

22 Key success factors 1. Commitment from senior management from all stakeholders supporting e-awb as a competitive advantage 2. Strong value proposition with a single process covering all tradelanes (MC99, MP4 and Warsaw) 3. Simple target with a clear roll out plan led by a dedicated project manager with cargo expertise, IT knowledge and passion 4. Engagement of freight forwarders as well as internal staff with clear communication, documentation and training 5. User friendly IT solution for global and local freight forwarders (web portal) with a focus on increasing data quality 6. Use of IATA standards EDI messages and e-awb agreement without modifications (additional articles to cover Warsaw) 22 International Air Transport Association 2012

IATA standards and tools for e-awb Standard tools Functional specifications Model e-awb agreement (RP1670) CIMP and CXML standards e-learning solution Presentations, FaQ, Glossary Engagement FIATA

23 IATA standards and tools for e-awb Standard tools Functional specifications Model e-awb agreement (RP1670) CIMP and CXML standards e-learning solution Presentations, FaQ, Glossary Engagement FIATA communiqué Airline press releases e.g. CX, EK List of countries accepting e-awb Reporting scorecards e-awb Matchmaker e-awb workshops Information at Questions at 23 International Air Transport Association 2012

24 Next steps 1. Secure buy-in of all stakeholders 2. Identify stakeholders that are ready now 3. Run e-awb pilots with your stakeholders 4. Set up an e-awb workshop to increase adoption 24 International Air Transport Association 2012

25 More information Questions at e-awb on-line training More than 400 Industry Stakeholders already completed the e-awb training at: 25 International Air Transport Association 2012

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