Standards For An Emerging Air Cargo Market Aleks Popovich

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  • Standards For An Emerging Air Cargo Market Aleks Popovich

    1. 1. Standards for an Emerging Air Cargo Market Air Cargo India 2008 Mumbai, 23-25 January 2008 Aleks Popovich, Global Head Cargo, IATA
    2. 2. India: as an emerging air cargo market will be successful…. IATA International Freight Forecast Top 10 growth countries by average annual growth rate: 2007 – 2011 (From Top 30 countries based on 2006 volume)
    3. 3. … . IF: we deliver standards to ease doing business! The World Bank Group Ease of doing business index 2008 http://www.doingbusiness.org/EconomyRankings IATA International Freight Forecast Top 10 growth countries by average annual growth rate: 2007 – 2011 (From Top 30 countries based on 2006 volume)
    4. 4. <ul><li>Customers need: </li></ul><ul><ul><li>More speed </li></ul></ul><ul><ul><li>Less cost </li></ul></ul><ul><ul><li>More consistency </li></ul></ul><ul><li>So IATA delivers: </li></ul><ul><ul><li>e-freight </li></ul></ul><ul><ul><li>Cargo 2000 </li></ul></ul><ul><ul><li>Common Solutions (CASS, ULD) </li></ul></ul><ul><li>Regulators expect: </li></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>Security </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><li>So IATA delivers: </li></ul><ul><ul><li>Safety for Air Cargo </li></ul></ul><ul><ul><li>Secure Freight </li></ul></ul><ul><ul><li>Environment action for air cargo </li></ul></ul>IATA Cargo Agenda: All about standards
    5. 5. e-freight: What is it? e-freight is Paper-Free: No need to transport paper with the freight e-freight is Challenging: e-freight = e-ticket + e-passport for customers who can’t walk or talk e-freight is Simplicity: Simplified freight process plus electronic messaging
    6. 6. e-freight: Why do it? Cost: Take the paper out of the supply chain Time: Reduced freight “wait time” Consistency: Via one One Quality Management System Visibility: Quality electronic messaging for tracking status of freight
    7. 7. Live Pilots in 6 locations and 20 connecting routes Hong Kong, Singapore, UK, Netherlands, Canada, Sweden e-freight: Where is it? <ul><li>7 airlines </li></ul><ul><li>Also: </li></ul><ul><ul><li>9 GHA </li></ul></ul><ul><ul><li>11 Customs & Government Bodies </li></ul></ul><ul><ul><li>Cargo 2000 </li></ul></ul><ul><ul><li>6 industry associations </li></ul></ul><ul><li>7 forwarders </li></ul>.
    8. 8. How e-freight takes the paper out One standard e-freight operating process Shippers Export Customs Import Customs Origin Freight Forwarders Origin-Destination Airports Consignees Destination Freight Forwarders 13 Documents removed: 50-60% of the paper Removing 3 Documents by Scanning. 26% volume Removing 4 Documents by Electronic Messages. 10% by volume Removing 3 Documents by Electronic Messages 32% by volume Removing 3 Documents by Electronic Messages 32% by volume
    9. 9. e-freight: What next? <ul><li>Secure the pilots: </li></ul><ul><ul><li>Increase the capability </li></ul></ul><ul><ul><li>Increase the participation </li></ul></ul><ul><ul><li>Define document standards </li></ul></ul><ul><ul><li>Fully operational by end 2008 </li></ul></ul><ul><li>Increase the locations: </li></ul><ul><ul><li>Must fulfill set criteria </li></ul></ul><ul><ul><li>Detailed assessments </li></ul></ul><ul><ul><li>8 more locations in 2008 </li></ul></ul>High Level Criteria: (1) MP4 or MC99 ratified?: (2) e-Customs modernization?: (3) WCO Letter of Intent?: High Level Criteria: INDIA (1) MP4 or MC99 ratified?: NO (2) e-Customs modernization?: YES? (3) WCO Letter of Intent?: YES`
    10. 10. CASS: 2003-2007 The Industry Billing and Settlement Standard Growth accelerates - Defaults hold % Defaults New CASS Countries 30 35 40 45 50 55 60 65 70 75 2002 2003 2004 2005 2006 2007 0.000% 0.005% 0.010% 0.015% 0.020% 0.025%
    11. 11. New CASS 2008: Fill the big gaps 2008 Candidates (with position in international export league table) Export Import Domestic France, Australia, Canada, Chile USA, China, Brazil Chinese Taipei (10), India (14), Colombia (32), Pakistan (38), Vietnam (41), Sri Lanka (45), Israel (47),
    12. 12. <ul><li>The Promise: </li></ul><ul><ul><li>India as respected innovative leader in World Trade! </li></ul></ul><ul><ul><li>Integration with rest of world and rest of country </li></ul></ul><ul><ul><li>Profitable growth exceeding market expectations </li></ul></ul><ul><li>The Vision: </li></ul><ul><ul><li>Pressure on “infrastructure” as the chosen approach </li></ul></ul><ul><ul><li>Cargo Hub(s) </li></ul></ul>IATA Cargo in Emerging Markets Series: India Dec 06 Can India Fulfill its Promise?
    13. 13. Fulfill the Promise!: Translate Strategy into Action “ If any suggestions from IATA, we are open to dialogue. For India – Cargo cannot be left out”
    14. 14. India Industry Action Group (Government, Commerce, Customs Administration, Supply Chain) <ul><li>Agenda </li></ul><ul><li>Voice of Customer </li></ul><ul><li>Industry Awareness, Education, Training </li></ul><ul><li>Accelerate e-freight </li></ul><ul><li>Accelerate Global Industry Standards </li></ul><ul><li>Security, Safety, Cargo 2000, Shared Services </li></ul>
    15. 15. India Industry Action Group (Government, Commerce, Customs Administration, Supply Chain) <ul><li>Progress </li></ul><ul><li>Key specific areas for action highlighted: </li></ul><ul><ul><li>Airport Facilities / Congestion, Fuel, Process, Regulatory, Security, Training </li></ul></ul><ul><li>Government and Customs dialogue established. </li></ul><ul><li>Actions progressed: </li></ul><ul><ul><li>Tackling transshipment uncertainties at Indian airports </li></ul></ul><ul><ul><li>Development of air freight stations for better handling and movement </li></ul></ul>
    16. 16. To register: http://www.iata.org/events/wcs08

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