1. 5.1.
e-AWB
The following implementation training was used by one of the leading global forwarders and can serve as basis for other implementations.
November 2015

2. Objectives At the end of this training session, you will
be able to describe what e-freight is
understand the pre-conditions for e-freight
understand in which circumstances e-freight can be implemented
know how e-freight is measured
Know where to find information about e-Freight
Objective of the training is to give some basics and enable you to transmit the basics.
During the training you can ask questions: you don’t have to wait until the end , but:
If it related to a topic concerning another session, or it becomes to much I will take the liberty of writing this down and come back to you.
This training does not cover : the steps to take to start the implementation, but provides the overview and the principles on e-freight and e-awb

3. Summary Definition and scope
Specifics and requirements for HAWB and its pouch
Specifics for MAWB/Direct
e-capable lanes list
Application entries at a glance
e-Freight measurement
Q & A
In the chapters about HAWB and MAWB , will be completed with some interactive parts.

4. E-freight is an e-initiative
For many forwarders e-freight is an integral part of their electronic data processing modules (sample below).
E-Shipment Visibility
E-Carrier Booking
E-Booking
E-Freight
E-Billing
Scope
Electronic Forwarding Order
Electronic AWB & HAWB Elimination of pouch
Electronic Vendor and customer invoicing
Electronic Carrier Booking
Electronic Status Messaging and Milestone management
current
stage
E-Booking project ongoing
Technically ready
E-File available
Data quality in good progress
In development for SAP TM
CASS e-invoices for dedicated customer
“e” Initiative was started: increase Electronic interchange to save paper and time consuming processes.
Several projects were tackled : e- booking ( customer), E-Order ( electronic carrier booking) E-billing
Reducing transport documentation:
e-file
FWB/ FHL
Statuses: replace cargo receipt document with the RCS status ( standard c2k status)
T & T improvement and preparation for SAP TM

5. Main documents in the chain
Cargo and documents are checked at many stages in the transport processes
Some are pre-condition for the cargo movement, others are generated during the Journey Different elements of the cargo and the documents are verified at different moments for different purposes. ( see examples in notes pages)
Many documents are necessary for transportation
Some are pre-condition for the cargo movement, others are generated during the Journey ( e.g. Customs Clearance, Flight Manifest)
Cargo and Documents are checked upon at many stages in the transport processes: different elements are being verified at different moments
Examples:
Customs will be interested in nature of goods and value
Ground Handling agent check pieces and weight, they check discrepancies for their customer ( the airline)
The Security Authorities are interested in Screening method on CSD or MAWB
Sanitary authorities are interested to check Cites documents
Forwarder is interested in issuing all docs correctly, to make sure to move cargo quickly and make customer happy.
Airline at Origin is interested in pieces , weight and correct shipper and consignee, nature of goods and customs info to actually make it fly.
The airline accounting is interested in accounting information on AWB after the flight departure
The airline must issue a Flight manifest and provide this to Aviation authorities, the information is compiled from MAWB data.

6. E-Freight: definition
E-Freight is the electronic interchange of transport documentation with business partners that eliminates the physical documentation that follows a shipment.
HAWB and MAWB pouches that contain:
Commercial invoice
Packing list
Certificate of Origin
ATA carnet
Cites
Dangerous Goods declaration
Letter of instruction
MAWB/ DAWB
Cargo manifest
House AWB
House Manifest
We will look at the definition in some minutes again focusing on HAWB and MAWB.
CITES: A specimen of a CITES-listed species may be imported into or exported (or re-exported) from a State party to the Convention only if the appropriate document has been obtained and presented for clearance at the port of entry or exit.
ATA Carnet: the ATA Carnet is an international customs document that permits the tax-free and duty-free temporary export and import of goods ( exhibition etc)

7. Electronic Contract of carriage.
AWB and e-AWB
e-AWB
HAWB and MAWB/ HAWB
Electronic Contract of carriage.
The information contained in the pouches is still required but exchanged electronically.
What is the air waybill? The Air Waybill (AWB) is the contract of carriage between the ‘shipper’ (e.g. forwarder) and the ‘carrier’ (airline). Is used for many purposes on the journey. = paper AWB
From this slide , we would say the AWB is just the contract.
But the contract is also moving with the cargo, and is
a identification of the Freight
Used for Freight acceptance
Security checks
Data entry in systems of many parties
And used as a basis for invoicing

8. Limitations of todays e-Freight
Some transportation documents cannot be transferred electronically yet:
no industry accepted electronic version for some documents (e.g. e-DG declaration, certificate of origin)
some country legislation require physical documents (Export and Import)
type of commodity requires specific paperwork and originals
Excluded from e-freight: CC, AVI, LHO, HUM, Letter of Credit
Own, Carrier and ground handling capabilities
E-freight/ e-AWB cannot be implemented on all lanes yet
Not all documents/pouches can be eliminated yet
AVI. Live animal
LHO: Life Human Organs
HUM: Human remains
Cc: Freight collect
Letter of Credit.
Comment
on electronic version :
Comment on Country legislation:
e.g. Russia e.g. Where the customs processes are still manually performed.
Type of commodity:
Insurance, declaration of value, sanitary declaration e.g. for Live Animals
Carrier and Ground handlers
Not all are technically equiped
Groundhandler from airline x is not equipped

9. Benefits: 4 minutes brainstorm with trainees
Which are the benefits you can imagine of implementing e-AWB for all parties of the transportation chain?
The Shipper
The Forwarder
The Ground Handler
The Airline
Which benefits do you see? Could you imagine?
What is in there for our customers?
Would the cargo be able to travel quicker?
Will there be more the visibility & better monitoring?
Reliability/ Increased quality?

10. Benefits of e-Freight
Today Air transport is still documentation driven; i.e. cargo is waiting for physical documents.
What is in for our service to our customers?
Move faster : de-coupling cargo from information flow. (e-customs, GHA acceptance process quicker over fast lanes, etc.). We do not want our cargo on the slow lanes!
Better shipment visibility & monitoring capabilities and pro-activeness !
Physical documents, paper, printing, storage cost diminish.
Effort /production of (H)AWB and AWB remains/need to be issued, but time reduction on splitting the AWB copies apart and walking to the printer ( 2 minutes per AWB?)
What is in for our service to the customer , established with our partners?
Improved data quality - root cause in stead of corrections down the road
Reduced data duplication by all involved business partners
online accessibility commercial and transportation documentation related to a shipment and exchange with partners.
Information will be pushed forward.
reducing data duplication also means better data quality: original data will be enhanced with necessary information and pushed along the chain.
Strengthening air freight: the whole industry is working on e-freight: the air industry as such want to take out a time/ transit time benenfit.
Other C2K definitions:
Booking received at Carrier
FWB: Submit FWB
RCS: Freight Checked in at Departure Airline
DEP: Goods confirmed on Board Flight
ARR: Freight Arrival at Destination Airport
RCF: Freight Acceptance at Arrival Airport
AWR: Documents Received at Destination Airport
NFD: Freight & Docs ready for Forwarder Pick Up
AWD: Documents Delivery to Forwarder
DLV: Freight delivery to Forwarder

11. Stakeholders of e-Freight & Implementation
Security Authorities: Homeland security : USA
Aviation Authorities of each country.

12. Today, the scope is e-AWB
e-AWB: which stands for the elimination of the MAWB or Direct: no document is handed to the airline anymore.
Pouch / e-HAWB: electronic HAWB and related commercial or transport documents are available electronically ( , eFile)
The final objective of “tomorrow” is transportation completely without any papers.

13. e-Freight on HAWB :
Contract of carriage between Shipper and forwarder is “issued” and distributed electronically. Pre-conditions:
One time acceptance of the IATA terms and conditions need to be signed by shipper
Certified enterprise document management system is in place: e-file
FHL can be send from forwarder and carrier can receive.
Technical ability/
Timely submission + Good quality of FHL
With FHL the manifest data is on hand at the carrier. For several destinations this was a must since long , beginning of 2014, FHL are send to all carriers ( that can receive it)
Good quaity of FHL and FNA must be monitored as the carrier will not be able to have the fall back on the Pouch and complete the data based on the HAWB copy.
EDI
.pdf

14. Documents can be stored and exchanged electronically:
e-File:
HAWB automatically saved in e-version to e-file
Electronic copies of commercial documents saved to e-file (issued by Shipper/supplier)
They are available for all involved parties (export and import and allowed agents)
Electronic docs available for shipper/ consignee

15. e-Freight on HAWB possibilities
E-AWB
HAWB
Code
E-freight flag : EAW > W
meaning
Shipment moves without Documents
No physical documents at all
NON E-AWB
HAWB / Slim Pouch & Original Docs
Code
E-freight flag : NO > N
meaning
Shipment moves with Documents
copies, laser prints and only required original documents
NON E-AWB
HAWB / Full Pouch & all required docs
Code
E-freight flag : NO > N
meaning
Shipment moves with complete set of original documents
contains copies of the HAWB (neutral form), original commercial invoices, evtl. original packing list (all originals)
Comment: Slim docuemnts ( limited set of docs,) in the systems are coded as NON- e-freight: but by limiting the production of HAWB or swithcing to laser print to make a “slim pouch” does bring panalpina a economical saving.

16. 1. No documents is the ultimate goal
can apply for
Country or commodity do NOT require original documents
Destination BU can access e-File: E-File allows storage of electronic versions of documentation
Carriers which confirmed they do not require a pouch
Consequence: If all shipments on a consolidation are W ( have no pouch), the MAWB can be EAW
HAWB
Application Code
E-freight flag : EAW > W
meaning
Shipment moves without Documents

17. 2. Limited number of documents (slim pouch)
Can apply for
If no original documents are required
If no FHL are sent to airline Laser Print HAWB / AWB and copies of commercial documents are required
Special commodities or shipments which need to follow the shipment. E.g. DG certificate, a certificate of origin, CITES, Carnet ATA etc.
HAWB
Application Code
E-freight flag : NO (N)
meaning
Shipment moves with some Documents
Here we see that if we do send some documents the shipment is considered as NON e-Freight:
Just not that there is a benefit, because ,
we reduce the amount of physical document production ,
it is a first step to e-freight, in situations where it is not yet possible

18. 3. Complete set of original documents (NON)
Can apply for
Full set of original documents is required
For countries, for which the customs at destination requires full original documents
for certain commodities
HAWB
Application Code
E-freight flag : NO (N)
meaning
Shipment moves with Documents

19. Business Cases
A shipment (house), goes to a country where no original docs are required. But it needs to be accompanied by a Carnet-ATA
2. A shipment (house), goes to a country where no original docs are required. E-file is accessible in the destination country. FHL is sent to carrier.
CDG
1. What pouch will be made?
2. How do we code this in our application?
Answers:
SLIM
N for NON
1. What pouch will be made?
2. How do we code this in our application?

20. Specifics for e-Freight on MAWB/ Direct
E-Freight is the electronic interchange of transport documentation with business partners that replaces the physical documentation that follows a shipment.
Elimination of printed MAWB /Direct
Business partner is the Carrier
We saw thhis definition already and now we will look how it applies to MAWB
Elimination of physical MAWB/Direct
Business partner: That is with howm we send the contract of carriage basically.
In the case of a direct we sign on behalf of the customer.

21. Pre-conditions for e-Freight on MAWB/ Direct
Ability to process FWB
Technical Ability
Timely process the FWB (cut off times)
Good quality FWB
One time acceptance of the IATA terms and conditions need to be signed by Forwarder and Carrier (multilateral e-AWB agreement)
General information about the multilateral agreement:
Joined carriers can be looked up in the IATA matchmaker:
Certified enterprise document management system is in place: e-file
For EAW: all HAWB must be EAW (W)
We will come back to the FWB topic in a next session

22. Forwarder’s requirements to carriers
Forwarder expects following from carriers prior to agree to e-Freight:
support the Single Process
no handover of AWB irrespective of the destination.
according to multilateral agreement, the carrier produces and signs the AWB on our behalf, if required
Note: capability on real single process needs to be checked.
send FNA and FMA as a response on the FWB/FHL
RCS : Cargo Checked in at Departure Airline
send Status messages (FSU) according to C2K industry standard (incl. ARR)
Note: capability on real single process needs to be checked.
Carriers joining the single process have the good intention to apply this process: note we are in implementation phase also for airlines and we recommend checking capabilities.
FWB: Electronic version of MAWB
FHL: manifest data for HAWB FNA: Reject Message for FWB or FHL
FMA. Accepted/ acknowledgement for FHL and FWB
FSU: Status messages from airlines
C2K: cargo 2000 ( industry standard)
ARR: arrived status

23. Single Process Carrier status 1.10.2015 (source: IATA)
Cathay Pacific (CX)
Lufthansa Cargo (LH)
Singapore Airlines (SQ)
Turkish Airlines (TK)
Air France (AF)
KLM (KL)
Swiss (LX)
Korean Air (KE)
Air Canada (AC)
Delta Air Lines (DL)
Qatar Airways (QR)
South African Airways (SA)
American Airlines (AA)
SAS (SK)
IAG / British (BA)
IAG / Iberia (IB)
Ethiopian Airlines (ET)

24. e-Freight on MAWB/Direct
NO MAWB and NO POUCH with HAWBs
2. NO MAWB and a POUCH (preferably a slim pouch)
3. Printed AWB
AWB (MAWB/Direct)
Code
EAW
meaning
E-AWB: Shipment moves without POUCH
AWB (MAWB/Direct)
Code
EAP
meaning
E-AWB with Pouch
AWB (MAWB/Direct)
Code
NON
meaning
NON E-AWB : Shipment moves with FULL POUCH

25. Scenarios : link s between HAWB and MAWB/Direct
EAW
MAWB
HAWB
NON
MAWB
EAP
HAWB
EAW
NON
MAWB
EAP
HAWB
NON
MAWB

26. Business Case 1
A shipment (house), goes to a country where no original docs are required. But it needs to be accompanied by a Carnet-ATA.
1. The consolidation in which this shipment will be assigned, can it be a e-Freight Consolidation or not?
2. How do we code this our system?
CDG
Answers:
SLIM
N for NON

27. Business Case
A consol with 6 shipments. For 5 of these shipments we are not preparing a pouch, however 1 shipment needs to be accompanied by certificate of origin.
1. Can we do e-freight?
2. Do we hand a pouch to the airline?
3. How do we code this?
CDG
CDG
CDG
CDG
CDG
MAWB
Answers:
Yes
Slim Pouch
5 x Y in FOS
1 x N in FOS
MAWB = EAP
CDG

28. How is e-freight measured
IATA e-AWB penetration published by IATA, based on industry criteria
Countries ratifying conventions, carriers signing the multilateral agreement
Ay forwarder’s e-freight performance can be measured based on two values:
HAWB performance = EAW/Total HAWB
AWB performance = EAW+ EAP / Total AWB
No exclusions based on carriers
No exclusions based on destinations
Mentioned in the report ( e.g. november)

29. Implementation
Align with Regional Standard & governance on a long and short term implementation plan.
Depends on the carrier/ shipment balance in each country
Use published reports to analyze carrier split.
Give priority to Single Process where possible
Consider if airline is Single process ready
Consider if incentives for e-AWB have been agreed
Focus on quality implementation:
Consider airline capability to full fill our requirements (FNA, FMA, receipt of RCS and other Status updates)
Quality initiatives from airlines
Do not agree to long term and complicated workarounds
Note: capability on real single process needs to be checked.
Carriers joining the single process have the good intention to apply this process: note we are in implementation phase also for airlines and we recommend checking capabilities.
FWB: Electronic version of MAWB
FHL: manifest data for HAWB FNA: Reject Message for FWB or FHL
FMA. Accepted/ acknowledgement for FHL and FWB
FSU: Status messages from airlines
C2K: cargo 2000 ( industry standard)
ARR: arrived status

30. Frequently asked questions
Can I drop the pouch if I have a carrier which has not signed the multilateral agreement? No, you can not drop the pouch. But you can go on a “slim pouch”, just containing a copy Manifest as well as a laser print copy of the HAWB (no terms and conditions on the back side required) as long as the destination does not require original commercial documents
What do I do if an E-carrier can only do EAP and is not EAW ready? Majority of the carriers do confirm they do not have an issue with having no pouch. However information received on HQ side might differ than local perception.
I am EAW ready in Export, how should I inform my counterpart that I will start with no pouch? Although the green countries confirmed that they can handle import shipments with no pouch, we do suggest to send them a first heads up before you start
What should I do if a carrier does not support single process? During testing and implementation phase it is quite common to not work with a single process. However we need to make sure single process is applied latest 60 days after we start with a carrier. It is your own option if you do e-freight with carriers which do not offer single process.

31. Frequently asked questions
What should I do if a confirmed carrier locally does not offer single process? Single process means, the local ground handling agent needs to be equipped with AWB printers. That is not everywhere in place yet. Carrier should let you know by when they will be single process capable.
How do I know if I have to do a pouch? Check country list
Where can I see if a carrier has singed the multilateral e-AWB agreement? IATA page match maker (attention: match maker port pair is not up to date)

32. Let’s make e-AWB ad e-freight the priority for 2016.
Thank you for your kind attention