e Freight Fundamentals

8/10/2019 e Freight Fundamentals

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1INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013

e-freight

fundamentals


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Building and implementing an end-to-endpaperless transportation process for the air

cargo industry where paper documents are

replaced with the exchange of electronic data

Shipper

Export

Customs/

RegulatorsImport

Customs/

Regulators

Origin

Forwarder

Carrier

Consignee

DestinationForwarder

Origin

GHA

Destination

GHA

Safe, Secure, Reliable, Efficient

e-freight Vision


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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 toremove paper documents from the process of shipping air cargo from

origin to destination

Documents are replaced with the exchange of electronic data


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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


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Shippers

ExportCustoms

Import

Customs

Origin

Freight Forwarders

Carrier

Consignees

1. Invoice

2. Packing List

3. Certificate of Origin

4. Letter of Instruction

5. Dangerous Goods Declaration

6.CITES certificate*7. Master Air Waybill

8. House Waybill

9. House Manifest

10. Export Goods Declaration11. Customs Release Export

Destination

Freight Forwarders

19. Import Goods Declaration

20. Customs Release Import

12. Flight Manifest

13. Transfer Manifest

14. Export Cargo Declaration

15. Import Cargo Declaration

16. Transit Declaration*17. Security Declaration*

18. Freight Book List*

Origin

GHA

Destination

GHA

Scope: e-freight documents


7/257INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013

Cost:Eliminate paper handling, transporting and processing cost

(eliminates data re-capture)

Time:Reduced freight wait time

Quality:Unified Quality Management Standards

Visibility:Quality electronic messaging for tracking status of freight

Sustainability:Contribute to environment by reducing paper consumption

e-freight: Why do it?


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42Locations LIVE

437Airports LIVE

Graphic figures

are based on

October 2012 data.

Overall e-freight

penetration

reached 14% on

trade lanes that

were live at the end

of 2010.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Monthly EF Volume (last 12 months)

Total EF Consignment EAP

EAW EF Penetration between live partners

INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013

e-freight Statusend Oct 2012


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IATA published the Cargo-XML Manual andToolkit (1stEdition) containing the following 14Cargo-XML Messages:


Cargo-XML Standards for e-freight

Transpo rt Messages Acro nym

XML Waybill XFWB

XML House Waybill XFZB

XML House Manifest XFHL

XML Flight Manifest XFFM

XML Freight Booked ListXFBL

XML Status Message XFSU

XML Response Message XFNM

XML Booking Message XFFR

XML Custom Status Notification XCSN

Commerc ia l Messages Acronym

XML Shippers Declaration for Dangerous

GoodsXSDG

XML Invoice XINV

XML Packing List XPCL

XML Certificate of Origin XCOO

XML Shippers Letter of Instruction 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 www.iata.org/cxmltf


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2009 2010 2011 2012 2013 201520142006 2007 2008

Drive Roadmap towards100% paperless

Project Kick -Off

Pilots in six

locations (1)

First e-FOPs (2)

GACAG

Roadmap

(1) Canada, Hong Kong, Netherlands, Singapore, Sweden, United Kingdom

(2) e-freight Operational Procedures

Develop missing

standards

Build the route network

(location Capability)


e-freight development life cycle


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In 2012 GACAG adopted a

three-pillar Roadmap to achieve

paperless transportation



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ThreePillars towards paperlessShipper

Export

Customs/

Regulators

Import

Customs/

Regulators

Carrier

ConsigneeOrigin

GHA

Destination

GHA

Pillar IEstablish Route

Network (enabler)Engage regulators to create

network where customs are

electronic and regulatory

environment supports paperless

Pillar IIImplement Paperless

airport-to-airportDigitize core transport docs: Air Waybill,

House Manifest, Consignment Security Dec.

(CSD), Flight Manifest

Goal: Paperless acceptance and delivery of

freight, airport to airport.

Pillar IIIImplement

Paperless door-to-door Digitize core commercial docs

(invoice/Packing list/HAWB) and

Special cargo docs

Goal: Removal of document

pouches, shipper to consignee

Pillar I

Pillar II

Pillar III

*Air Waybill, House Manifest, Flight Manifest, (Consignment Security Declaration is anticipated)

Origin

Forwarder

Destination

Forwarder



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Whatis required fore-freight to work?


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Customs

andRegulators

I

Global e-freightNetwork

IATA

Pilots in two BRIC

locations

45% trade lane coverage

80% world trade lanes

Key

Stake-

holders

2013

Target

2015 Goal

Lead

Pillar I

Electronic Customs environment

Ability to make customs declarations

electronically (export and import) No requirement to show original paper

documents for invoice and packing lists duringor post transit

Electronic docs (invoice/packing list) must beaccepted in electronic format, or printed copy



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Key electronic customs requirementsfor 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 originalsat least for invoice and

packing list, master air waybill and house air waybill (including for post-flight audits)



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e-freight trade & transport

messages should feed

Customs messages, reducing

manual entries and

increasing Quality



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Pillar II

Electronic communicationbetween FF-Airline-GHA

Ability to communicate FWB and FHL informationbetween FF-Airline-GHA systems (or captureinformation on airline web portal)

e-AWB agreements signed and implemented (currentlyoptional for e-freight but mandatory as of Jan 2013)

Procedures defined between FF-GHA-Airline to acceptfreight at acceptance counter (origin) and for freightdelivery (destination) without original paper docs (may

require use of a shippers delivery note or warehousereceipt)


Key

Stake-

holders

2013

Target

2015 Goal

Lead

II Removal of Core

Transport Docs

Handler

IATA

Forwarder

Airline

e-AWB 20% penetration

100% paperless *

*Air waybill, House Manifest, Flight Manifest, Consignment Security Declaration


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Flight Manifest

House Waybill

Master Air Waybill

House Manifest

House Waybill

Cargo Declaration

Goods Declaration

Invoice Invoice

Packing List Packing List

Air Waybill

Tra

de

Transporta

tion

Custo

ms

Invoice

Packing List



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Pillar III

Electronic communicationbetween origin and destination

forwarder/consignee Ability of origin forwarder to communicate key

documents to destination forwarder, broker andshipper electronically (house air waybill, invoice,packing list)

Ability to archive documents electronically (e-Archiving)

Once the above are in place, the forwarder does notneed to provide these documents to the airline forcarriage to destination (Elimination of the documentpouch for general cargo documents, reduced pouchfor other cargo that needs special cargo docs in thepouch)


Key

Stake-

holders

2013

Target

2015 Goal

Lead

Shipper

Forwarder

FIATA & GSF

Industry plan to digitize

commercial docs

Airline

Use of e-pouch for

general cargo

IIIRemoval of the pouch


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Appendix

e-freight: end-to-end data flow for General Cargo

e-freight: Principles

e-freight: find out more



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In the paperless environment, data flows match therequirements 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


e-freight end-to-end data flow

for General Cargo


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Export Customs

Flight Manifest

Air Waybill

House Manifest

Cargo Acceptance

Export Cargo Decl. /

Customs Release Export

Import Customs

Air Waybill

House Manifest

Invoice

Packing List

Air Waybill

House Manifest

House Waybill

Export Customs

Export Goods Decl. /

Customs Release Export

Invoice

Packing List

Invoice

Packing List

Origin

Freight Forwarders

Information flow EDI

Freight flow

Carrier

Consignees

Shippers

Import Cargo Decl. /

Customs Release Import

Import Customs

Import Goods Decl. /

Customs Release Import

Destination

Freight Forwarders

Information flow EDI or Scan

e-freight end-to-end data flow for General Cargo



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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


e-freight: Principles (2/2)


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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

www.iata.org/e-freightand www.iata.org/e-AWB

e-freight: Find out more