1. e freight-fundamentals


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1. e freight-fundamentals

  1. 1. e-freight fundamentalsINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 1
  2. 2. e-freight Vision Shipper Origin Carrier Destination Forwarder Origin GHA Consignee GHA Destination Forwarder Export Customs/ Import Regulators 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, EfficientINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 2
  3. 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 dataINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 3
  4. 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 initiativesINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 4
  5. 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 providersINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 5
  6. 6. Scope: e-freight documentsShippers Carrier Origin Freight Forwarders Origin Destination Export GHA GHA Customs Import1. Invoice2. Packing List Customs3. Certificate of Origin Destination4. Letter of Instruction5. Dangerous Goods Declaration 12. Flight Manifest Freight Forwarders 7. Master Air Waybill6.CITES certificate* 13. Transfer Manifest 8. House Waybill 14. Export Cargo Declaration 9. House Manifest 15. Import Cargo Declaration 10. Export Goods Declaration 16. Transit Declaration* 11. Customs Release Export 17. Security Declaration* 18. Freight Book List* 19. Import Goods Declaration 20. Customs Release Import Consignees INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 6
  7. 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 consumptionINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 7
  8. 8. e-freight Status – end Oct 2012 42 437 Locations LIVE Airports LIVE Overall e-freight Monthly EF Volume (last 12 months) penetration 70,000 12.00% reached 14% on 60,000 10.00% trade lanes that 50,000 40,000 8.00% were live at the end 6.00% 30,000 of 2010. 4.00% 20,000 10,000 2.00% 0 0.00% Graphic figures are based on Total EF Consignment EAP October 2012 data. EAW EF Penetration between live partnersINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 8
  9. 9. Cargo-XML Standards for e-freight  IATA published the Cargo-XML Manual and Toolkit (1st Edition) containing the following 14 Cargo-XML Messages: Transport Messages Acronym Commercial Messages Acronym XML Waybill XFWB XML Shippers Declaration for Dangerous XSDG Goods XML House Waybill XFZB XML Invoice XINV XML House Manifest XFHL XML Packing List XPCL XML Flight Manifest XFFM XML Certificate of Origin XCOO XML Freight Booked List XFBL XML Shippers Letter of Instruction XSLI XML Status Message XFSU XML Response Message XFNM Note: IATA also developed CITES permit and Transit Declaration XML Booking Message XFFR in conjunction with respective organizations i.e. Convention on International Trade in Endangered Species (CITES) and World XML Custom Status Notification XCSN Customs Organization (WCO) For further details about Cargo-XML standards please visit www.iata.org/cxmltfINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 9
  10. 10. e-freight development life cycle 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Project Kick -Off Pilots in six locations (1) First e-FOPs (2) Develop missing Drive Roadmap towards standards 100% paperless GACAG Build the route network Roadmap (location Capability)(1) Canada, Hong Kong, Netherlands, Singapore, Sweden, United Kingdom(2) e-freight Operational Procedures INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 10
  11. 11. In 2012 GACAG adopted a „ three-pillar‟ Roadmap to achieve paperless transportationINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 11
  12. 12. Three Pillars towards paperless Shipper Origin Carrier Destination Forwarder Origin GHA Consignee GHA Destination Forwarder Pillar III Pillar II Export Import Customs/ Customs/ Pillar I Regulators Regulators Pillar I – Establish Route Pillar II – Implement Paperless Pillar III – Implement Network (enabler) „airport-to-airport‟ Paperless „door-to-door „ Engage regulators to create Digitize core transport docs: Air Waybill, Digitize core commercial docs network where customs are House Manifest, Consignment Security Dec. (invoice/Packing list/HAWB) and electronic and regulatory (CSD), Flight Manifest Special cargo docs environment supports paperless Goal: Paperless acceptance and delivery of Goal: Removal of document freight, airport to airport. pouches, shipper to consignee *Air Waybill, House Manifest, Flight Manifest, (Consignment Security Declaration is anticipated)INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 12
  13. 13. What is required for e-freight to work?INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 13
  14. 14. I – Global e-freight II – Removal of Core Pillar I III – Removal of pouch Network Transport Docs Airline Electronic Customs environment Shipper Key Handler Forwarder Stake- Customs  Ability to make customs declarations Airline holders Forwarder and electronically (export and import) Regulators  No requirement to show original paper documents for invoice and packing lists during Pilots in two BRIC 2013 locations or post transit e-AWB 20% penetration Industry plan to digitize Target commercial docs 45% trade lane coverage  Electronic docs (invoice/packing list) must be accepted in electronic format, or printed copy2015 Goal Use of e-pouch for 80% world trade lanes 100% paperless * general cargo Lead IATA IATA FIATA & GSF *Air Waybill, House Manifest, Flight Manifest, Consignment Security DeclarationINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 14
  15. 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)INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 15
  16. 16. e-freight trade & transport messages should “feed” Customs messages, reducing manual entries and increasing QualityINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 16
  17. 17. I – Global e-freightal e-freighttwork II – Removal of Core Network Transport Docs Pillar –Transport Docs III – Removal of pouch Core II Removal of II III – Removal of pouch Airline Airline Electronic communication Shipper Shipper Key Handler between FF-Airline-GHA Forwarder Handler Forwarders Stake- Customs Airline Airline holders Forwarder Forwarder and  Ability to communicate FWB and FHL informationrs Regulators 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 optionaldigitize plan to for e-freight but Industry plan to digitizeations locations e-AWB 20% penetration e-AWB 20% penetration mandatory as of Jan 2013) Target commercial docs defined between FF-GHA-Airline todocs  Procedures commercial acceptane coverage 45% trade lane coverage freight at acceptance counter (origin) and for freight delivery (destination) without original paper docs (may require use of a shippers delivery note or warehouse 2015 Goal Use ofreceipt) for e-pouch Use of e-pouch ford trade lanes 80% world trade lanes 100% paperless * 100% paperless * general cargo general cargoATA Lead IATA IATA IATA FIATA & GSF FIATA & GSF *Air waybill, House Manifest, Flight Manifest, Consignment Security DeclarationHouse Manifest, Flight*Air Waybill, House Manifest, Declaration Manifest, Consignment Security Flight Manifest, Consignment Security Declaration INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 17
  18. 18. Flight Manifest Cargo Declaration Master Air Waybill Air Waybill Transportation House Manifest Customs House Waybill House Waybill Trade Invoice Invoice Invoice Packing List Packing List Packing List Goods DeclarationINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 18
  19. 19. of Core – Global e-freight III – IRemoval of pouch II – III Pillar Removal of Core III – Removal of pouch III – Removal of the pouchDocs Network Transport Docsrline Airline Shipper Electronic communication Shipper Handler Key Stake- Forwarder between origin and destination Forwarder Customs Airline Airlinearder holders and forwarder/consignee Forwarder Regulators  Ability of origin forwarder to communicate key Pilots in two BRIC documents to destination forwarder, broker and 2013 Industry plan to digitize shipper electronically (houseIndustry plan to digitize air waybill, invoice,netration locations e-AWB 20% penetration packing list) Target commercial docs commercial docs 45% trade lane coverage  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 to thee-pouch for Use of airline forless * Goal 2015 80% world trade lanes 100% paperless * carriage to destination (Eliminationgeneral cargo of the document general cargo pouch for general cargo documents, reduced pouch for other cargo that needs special cargo docs in the pouch) Lead FIATA IATA & GSF IATA FIATA & GSF *Air Waybill, House Manifest, Flight Manifest, Consignment Security Declarationgnment Security Declaration INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 19
  20. 20. Appendix  e-freight: end-to-end data flow for General Cargo  e-freight: Principles  e-freight: find out moreINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 20
  21. 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 partiesINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 21
  22. 22. e-freight end-to-end data flow for General Cargo Invoice Packing List Invoice Invoice Packing List Packing List Air Waybill House ManifestShippers House Waybill Cargo Acceptance Consignees Origin Freight Forwarders Carrier Export Goods Decl. / Customs Release Export Air Waybill House Manifest Import Cargo Decl. / Export Cargo Decl. / Flight Manifest Customs Release Import Air Waybill Destination Customs Release Export House Manifest Freight Forwarders Export Customs Import Goods Decl. / Freight flow Customs Release Import Information flow EDI Information flow EDI or Scan Import Customs INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 22
  23. 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)INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 23
  24. 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 timeINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 24
  25. 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 www.iata.org/e-freight and www.iata.org/e-AWBINTERNATIONAL AIR TRANSPORT ASSOCIATION 2013 25
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