1 IATA e-freight Patrick Murray IATA e-freight Simplifying the Business

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION  Why are we doing this?  Industry processes remain largely paper dependent  Missing or incorrect documentation slows progress through the supply chain  Keeping documents & freight in sync is complex and costly  Multiple parties capturing the same data is inefficient and error prone We need to create a Paper-Free environment IATA e-freight: Purpose

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Key Definitions Paperless  Defined as no requirement to produce or transport any paper documents for any purpose at any time (primary and secondary process) Paper Free  Defined as an environment in which industry does not need to transport paper in parallel with the freight, but there may be a requirement to produce this paper in original, copy or printed e- document form for some authority or process. IATA e-freight: Delivers a paper-free industry to reduce paper-work (i.e. cost of processing paper, including data quality). IATA e-freight is not paper-less.

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Summary  What are the benefits ?  Faster and more accurate information flows, can reduce the time freight spends on the ground and allow customs to carry out advance risk assessment.  Simplification by maximizing use of common data and communication standards thus reducing the dependency on paper as primary source of information.  Reduction in direct cost associated with paper processes.  Enhanced ability to meet security requirements and avoid non- compliance penalties.

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Summary  What is it?  A joint air cargo industry program of carriers, forwarders and customs, led by IATA.  Industry Action Group (IAG) formed which serves as a steering and advisory group.  What is our approach?  Business change supported by automation.  Joining forces: IATA, WCO, UN, FFI, Cargo 2000, e-freight solutions providers.  Proof of Concept through a series of pilot programs starting in 2007  Participation of all parties on country level

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Status  Revised objective to secure commitment from 5 countries for 2007 implementation for general cargo.  e-freight strategy document published on the StB Support Portal.  Vendors Information Pack has been distributed to nearly 300 potential e-freight system providers.  Potential 1 st wave pilot countries have been identified and a commitment meeting schedule planned.  A Message Improvement Program is under development.

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Pilot Implementation Plan “Top Down ”  5 e-freight target pilots in 2007 to be chosen from Australia, Canada, China, Hong Kong, Netherlands, New Zealand, Singapore, Sweden, Mauritius, Chinese Taipei and the United Kingdom. *  Government commitment meetings to take place between September and November.  Broad participation in country meetings is of utmost importance  Each country pilot will be governed by an e-freight management group.  Local implementation activities will commence in Pilot Countries in  Pilots will act as proof of concept, demonstrate value, validate assumptions, feedback into the process and become business as usual. * Further refined, from original list of 17 countries based on: WCO recommendations, Global cargo volume, Geographical split

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Vendor Information Pack  Objective is to identify a community of vendors who are committed to deliver global e-freight solutions to the industry, focussing on SME’s.  Provides a guide to the existing technical and industry business requirements for potential vendors:  Solicits responses which will allow IATA to identify vendors who are committed to supplying e-freight enabling technology to the industry which will:  Support the e-freight vision (Target date 2008)  Support the Pilots (Target date 2007)  Support e-messaging quality measurement (Target Date 2006/2007).

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION Business: primary document set identified (for customs clearance of general freight – phase 1) Primary document list  House waybill  Master air waybill  Commercial/pro-forma invoice  Flight manifest  House manifest  Export cargo declaration*  Export goods declaration*  Import cargo declaration*  Import goods declaration* * data obtained from other documents Extended list (some/most countries)  Packing list  Certificate of origin  Security declaration

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Standards, where are we ? Documents required for the clearance of general freight

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Standards, where are we ? Documents required for the clearance of “special” freight

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Message Improvement Program “Bottom Up”  e-freight stakeholders must be confident in the quality of data in electronic messages.  Participation in the program is a necessity for e-freight pilot stakeholders.  Initial focus of the program will be to improve FWB and FHL quality and penetration, between forwarders and airlines.  e-freight and Cargo 2000 are working together to ensure any data measurement synergies are maximized and duplication avoided

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Suggested UNeDocs/IATA engagement model  Work with vendors/document owners to create standards for UNeDocs, using core components.  Review and agree standard with UNeDocs Team.  Formally submit standard to UNeDocs Team.  Publish standards for use by vendors.  Incorporate any feedback from TBG into published standard.

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Feedback from Vendors  Standards must be agreed and implemented quickly, while being easy to maintain.  New standards should only be developed when a business need for that document/message has been identified.  Vendors claim that airlines, agents and ground handlers are increasingly asking for XML versions of Cargo messages, claiming XML is easier to develop and maintain.

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: Finally  UNeDocs is a great collaboration of standards, but:  Develop a communications strategy, many potential stakeholders are not aware of UNeDocs.  Many of the users will be new. Please make the information easily accessible and understandable to NON-TECHNICAL STAFF. They can be the KEY decision makers.  Standards should be stable and consistent  Make information easily accessible on the web. Keep the web site up to date.  Create a Glossary  Develop a robust version control mechanism, which allows for timely update.  Please Keep It simple

Simplifying the Business  INTERNATIONAL AIR TRANSPORT ASSOCIATION IATA e-freight: How to stay connected! Click on the StB Support Portal button Updates FAQs Materials Log request for follow up StB eNewsletter