e-freight fundamentals

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Agnes Eleanore Preston
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1 e-freight fundamentals 1

e-freight Vision Shipper Origin Forwarder Origin GHA Carrier Destination GHA Destination Forwarder Consignee Export Customs/ Regulators Import Customs/ Regulators Building and

2 e-freight Vision Shipper Origin Forwarder Origin GHA Carrier Destination GHA Destination Forwarder Consignee Export Customs/ Regulators Import Customs/ Regulators 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 Safe, Secure, Reliable, Efficient 2

3 e-freight fundamentals (1/3) e-freight is about building a paper free air cargo supply chain It includes a set of business processes and standards that allow to remove paper documents from the process of shipping air cargo from origin to destination Documents are replaced with the exchange of electronic data 3

4 e-freight fundamentals (2/3) The e-freight initiative identifies the locations where those electronic standards can be used The e-freight initiative drives adoption of those standards by industry participants via targeted change management initiatives 4

5 e-freight fundamentals (3/3) e-doc standards used as part of e-freight rely on use of EDI (Cargo- IMP or XML) or scanned images (for some documents) e-freight uses the existing air cargo industry messaging infrastructure. Participants must use in-house technology to connect to their partners or use tools provided by their partners or 3rd party providers 5

6 Scope: e-freight documents Shippers Origin Freight Forwarders 1. Invoice 2. Packing List 3. Certificate of Origin 4. Letter of Instruction 5. Dangerous Goods Declaration 6.CITES certificate* Export Customs Origin GHA 7. Master Air Waybill 8. House Waybill 9. House Manifest 10. Export Goods Declaration 11. Customs Release Export Carrier 12. Flight Manifest 13. Transfer Manifest 14. Export Cargo Declaration 15. Import Cargo Declaration 16. Transit Declaration* 17. Security Declaration* 18. Freight Book List* Destination GHA Import Customs 19. Import Goods Declaration 20. Customs Release Import Destination Freight Forwarders Consignees 6

7 e-freight: Why do it? Cost: Eliminate paper handling, transporting and processing cost (eliminates data re-capture) Time: Reduced freight wait time Visibility: Quality electronic messaging for tracking status of freight Quality: Unified Quality Management Standards Sustainability: Contribute to environment by reducing paper consumption 7

e-freight Status end Oct 2012 42 Locations LIVE Monthly EF Volume (last 12 months) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Total EF Consignment EAW 437 Airports LIVE 12.00% 10.00% 8.00% 6.

8 e-freight Status end Oct Locations LIVE Monthly EF Volume (last 12 months) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Total EF Consignment EAW 437 Airports LIVE 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% EAP EF Penetration between live partners Overall e-freight penetration reached 14% on trade lanes that were live at the end of Graphic figures are based on October 2012 data. 8

Cargo-XML Standards for e-freight IATA published the Cargo-XML Manual and Toolkit (1 st Edition) containing the following 14 Cargo-XML Messages: Transport Messages XML Waybill XML House Waybill XML

9 Cargo-XML Standards for e-freight IATA published the Cargo-XML Manual and Toolkit (1 st Edition) containing the following 14 Cargo-XML Messages: Transport Messages XML Waybill XML House Waybill XML House Manifest XML Flight Manifest XML Freight Booked List XML Status Message XML Response Message XML Booking Message XML Custom Status Notification Acronym XFWB XFZB XFHL XFFM XFBL XFSU XFNM XFFR XCSN Commercial Messages XML Shippers Declaration for Dangerous Goods XML Invoice XML Packing List XML Certificate of Origin XML Shippers Letter of Instruction Acronym XSDG XINV XPCL XCOO XSLI Note: IATA also developed CITES permit and Transit Declaration in conjunction with respective organizations i.e. Convention on International Trade in Endangered Species (CITES) and World Customs Organization (WCO) For further details about Cargo-XML standards please visit 9

10 e-freight development life cycle Project Kick -Off Pilots in six locations (1) First e-fops (2) Develop missing standards Build the route network (location Capability) GACAG Roadmap Drive Roadmap towards 100% paperless (1) Canada, Hong Kong, Netherlands, Singapore, Sweden, United Kingdom (2) e-freight Operational Procedures 10

11 In 2012 GACAG adopted a three-pillar Roadmap to achieve paperless transportation 11

12 Three Pillars towards paperless Shipper Origin Forwarder Origin GHA Carrier Destination GHA Consignee Destination Forwarder Pillar III Pillar II Pillar I Export Customs/ Regulators Import Customs/ Regulators Pillar I Establish Route Network (enabler) Engage regulators to create network where customs are electronic and regulatory environment supports paperless Pillar II Implement Paperless airport-to-airport Digitize core transport docs: Air Waybill, House Manifest, Consignment Security Dec. (CSD), Flight Manifest Goal: Paperless acceptance and delivery of freight, airport to airport. Pillar III Implement Paperless door-to-door Digitize core commercial docs (invoice/packing list/hawb) and Special cargo docs Goal: Removal of document pouches, shipper to consignee *Air Waybill, House Manifest, Flight Manifest, (Consignment Security Declaration is anticipated) 12

13 What is required for e-freight to work? 13

14 I Global e-freight Network Pillar I II Removal of Core Transport Docs III Removal of pouch Key Stakeholders 2013 Target Customs and Regulators Pilots in two BRIC locations 45% trade lane coverage Airline Electronic Customs Shipper environment Handler Forwarder e-awb 20% penetration Ability to make customs declarations Forwarder electronically (export and import) Airline No requirement to show original paper documents for invoice and packing lists during or post transit Industry plan to digitize commercial docs Electronic docs (invoice/packing list) must be accepted in electronic format, or printed copy 2015 Goal 80% world trade lanes 100% paperless * Use of e-pouch for general cargo Lead IATA IATA FIATA & GSF *Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration 14

15 Key electronic customs requirements for e-freight Customs should accept: Electronic as an alternative to paper-based requirements Goods & cargo declarations exchanged electronically Release & control notification exchanged electronically Supporting documents exchanged electronically Messages & supporting documents archived electronically Paper by exceptions e.g. for examination Paper printout of electronic records instead of paper originals at least for invoice and packing list, master air waybill and house air waybill (including for post-flight audits) 15

16 e-freight trade & transport messages should feed Customs messages, reducing manual entries and increasing Quality 16

17 l e-freight work II I Removal Global of e-freight Core Transport Network Docs Pillar II III Removal II Removal of pouch of Core Transport Docs III Removal of pouch s Key Stakeholders Handler Customs andforwarder Regulators Airline Shipper Airline Electronic communication Shipper Handler between Forwarder FF-Airline-GHA Forwarder Airline Forwarder Ability to communicate FWB and FHL information between FF-Airline-GHA systems (or capture information on airline web portal) two BRIC Pilots in two BRIC e-awb agreements signed and implemented (currently 2013 Industry optional plan to digitize for e-freight but mandatory Industry as of plan Jan to 2013) digitize tions e-awb 20% locations penetration e-awb 20% penetration Target commercial Procedures docs defined between FF-GHA-Airline commercial to docs ne coverage 45% trade lane coverage accept freight at acceptance counter (origin) and for freight delivery (destination) without original paper docs (may require use of a shippers delivery note or warehouse receipt) 2015 Goal Use of e-pouch for Use of e-pouch for trade lanes 80% 100% world paperless trade * lanes 100% paperless * general cargo general cargo Airline TA Lead IATA IATA FIATA & GSF IATA FIATA & GSF *Air waybill, House Manifest, Flight Manifest, Consignment Security Declaration ouse Manifest, Flight *Air Manifest, Waybill, Consignment House Manifest, Security Declaration Flight Manifest, Consignment Security Declaration 17

18 Trade Transportation Customs Flight Manifest Cargo Declaration Master Air Waybill Air Waybill House Manifest House Waybill House Waybill Invoice Invoice Invoice Packing List Packing List Packing List Goods Declaration 18

19 f Core ocs III I Removal Global of e-freight pouch III Removal of the pouch Network Pillar III II Removal of Core Transport Docs III Removal of pouch line rder Key Stakeholders 2013 etration Target ess 2015 * Goal Lead Shipper Forwarder Customs and Regulators Airline Pilots in two BRIC Industry plan to digitize locations commercial docs 45% trade lane coverage Airline Electronic communication Shipper Handler Forwarder between origin and destination forwarder/consignee Forwarder Ability of origin forwarder to communicate key documents to destination forwarder, broker and shipper electronically (house Industry air waybill, plan invoice, to digitize e-awb packing 20% penetration list) commercial docs Ability to archive documents electronically (e- Archiving) Once the above are in place, the forwarder does not Use of e-pouch for need to provide these documents Use to the of e-pouch airline for for 80% world trade lanes 100% carriage paperless to destination * general cargo (Elimination general of the document cargo pouch for general cargo documents, reduced pouch for other cargo that needs special cargo docs in the pouch) FIATA IATA & GSF IATA FIATA & GSF Airline nment Security Declaration *Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration 19

20 Appendix e-freight: end-to-end data flow for General Cargo e-freight: Principles e-freight: find out more 20

21 e-freight end-to-end data flow for General Cargo In the paperless environment, data flows match the requirements of each party for information The following diagram represents one possible data flow scenario Other scenarios exist based on the location, the nature of the cargo, or the specific arrangement between the parties 21

22 e-freight end-to-end data flow for General Cargo Invoice Packing List Shippers Invoice Packing List Invoice Packing List Air Waybill House Manifest House Waybill Cargo Acceptance Consignees Export Goods Decl. / Customs Release Export Origin Freight Forwarders Air Waybill House Manifest Carrier Export Cargo Decl. / Customs Release Export Flight Manifest Air Waybill House Manifest Import Cargo Decl. / Customs Release Import Destination Freight Forwarders Export Customs Freight flow Information flow EDI Information flow EDI or Scan Import Customs Import Goods Decl. / Customs Release Import 22

23 e-freight: Principles (1/2) In support of the vision to build and implement an end-to-end paperless process for the air cargo industry, GACAG members have identified the following principles. The initiative shall: Aim to achieve data capture at source (to avoid re-keying) Adopt end-to-end supply chain vision: shipper to consignee (to enable single data capture) Encompass customs, security and transportation and other relevant documents that are part of the freight transportation process Include legal, regulatory, business and technology elements in the definition of paperless processes Rely on e-document standards and common business processes (defined in e-freight Operating Procedures e-fop) that are aligned with international standard setting bodies (WCO, UNCEFACT, ICAO, etc.) Allow paper to still be present by exception as required by local processes and based on electronic source data (print-on-demand) 23

24 e-freight: Principles (2/2) In support of the vision to build and implement an end-to-end paperless process for the air cargo industry, GACAG members have identified the following principles : The initiative shall: Not rely on single industry technology platform: each participant remains responsible for managing their own data Use existing industry EDI infrastructure where sufficient, but upgrade where relevant Drive emergence of solutions that facilitate adoption by all parts of the supply chain, and all types of organizations (large and small) Identify workable migration paths from current paper based processes to paperless processes Define a roadmap towards 100% paperless that splits the vision in manageable components with specific deliverables over time 24

25 e-freight: Find out more Tools provided by IATA to support you: e-cargo Matchmaker: who does e-freight where e-freight complete Case Studies e-freight Handbook: implementation guide e-freight self-assessment questionnaire e-freight Model EDI agreement (for e-awb) Capability Matrix of IT Providers and 25

e-freight Roadmap December 2012

e-freight Roadmap December 2012 2 Background Through 2012, the GACAG e-commerce Task Force (ECTF) has conducted a review of the e-freight initiative The goal was to define a joint air cargo industry approach