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Standards for an Emerging Air Cargo Market

Air Cargo India 2008 Mumbai, 23-25 January 2008 Aleks Popovich, Global Head Cargo, IATA. Standards for an Emerging Air Cargo Market. India: as an emerging air cargo market will be successful…. IATA International Freight Forecast

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Standards for an Emerging Air Cargo Market

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  1. Air Cargo India 2008 Mumbai, 23-25 January 2008 Aleks Popovich, Global Head Cargo, IATA Standards for an Emerging Air Cargo Market

  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. …. IF: we deliver standards to ease doing business! The World Bank Group Ease of doing business index 2008 IATA International Freight Forecast Top 10 growth countries by average annual growth rate: 2007 – 2011 (From Top 30 countries based on 2006 volume) http://www.doingbusiness.org/EconomyRankings

  4. IATA Cargo Agenda: All about standards Customers need: • More speed • Less cost • More consistency So IATA delivers: • e-freight • Cargo 2000 • Common Solutions (CASS, ULD) Regulators expect: • Safety • Security • Environment So IATA delivers: • Safety for Air Cargo • Secure Freight • Environment action for air cargo

  5. e-freight:What is it? e-freight is Paper-Free: No need to transport paper with the freight e-freight is Simplicity: Simplified freight process plus electronic messaging e-freight is Challenging: e-freight = e-ticket + e-passport for customers who can’t walk or talk

  6. e-freight:Why do it? Cost: Take the paper out of the supply chain Time: Reduced freight “wait time” Visibility: Quality electronic messaging for tracking status of freight Consistency: Via one One Quality Management System

  7. e-freight:Where is it? Live Pilots in 6 locations and 20 connecting routes Hong Kong, Singapore, UK, Netherlands, Canada, Sweden . • 7 forwarders • 7 airlines • Also: • 9 GHA • 11 Customs & Government Bodies • Cargo 2000 • 6 industry associations

  8. 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 How e-freight takes the paper outOne standard e-freight operating process Shippers Origin-Destination Airports Origin Freight Forwarders Export Customs Import Customs Destination Freight Forwarders Consignees 13 Documents removed: 50-60% of the paper

  9. e-freight:What next? Secure the pilots: • Increase the capability • Increase the participation • Define document standards • Fully operational by end 2008 Increase the locations: • Must fulfill set criteria • Detailed assessments • 8 more locations in 2008 High Level Criteria: INDIA (1) MP4 or MC99 ratified?: NO (2) e-Customs modernization?: YES? (3) WCO Letter of Intent?: YES` High Level Criteria: (1) MP4 or MC99 ratified?: (2) e-Customs modernization?: (3) WCO Letter of Intent?:

  10. CASS: 2003-2007The Industry Billing and Settlement StandardGrowth accelerates - Defaults hold 75 0.025% 70 0.020% 65 60 New CASS Countries 0.015% 55 % Defaults 50 0.010% 45 40 0.005% 35 30 0.000% 2002 2003 2004 2005 2006 2007

  11. New CASS 2008: Fill the big gaps 2008 Candidates (with position in international export league table) Export Chinese Taipei (10), India (14), Colombia (32), Pakistan (38), Vietnam (41), Sri Lanka (45), Israel (47), France, Australia, Canada, Chile Import Domestic USA, China, Brazil

  12. IATA Cargo in Emerging Markets Series: India Dec 06 Can India Fulfill its Promise? The Promise: • India as respected innovative leader in World Trade! • Integration with rest of world and rest of country • Profitable growth exceeding market expectations The Vision: • Pressure on “infrastructure” as the chosen approach • Cargo Hub(s)

  13. “If any suggestions from IATA, we are open to dialogue. For India – Cargo cannot be left out” Fulfill the Promise!:Translate Strategy into Action

  14. India Industry Action Group (Government, Commerce, Customs Administration, Supply Chain) Agenda • Voice of Customer • Industry Awareness, Education, Training • Accelerate e-freight • Accelerate Global Industry Standards • Security, Safety, Cargo 2000, Shared Services

  15. India Industry Action Group (Government, Commerce, Customs Administration, Supply Chain) Progress Key specific areas for action highlighted: Airport Facilities / Congestion, Fuel, Process, Regulatory, Security, Training Government and Customs dialogue established. Actions progressed: • Tackling transshipment uncertainties at Indian airports • Development of air freight stations for better handling and movement

  16. To register: http://www.iata.org/events/wcs08

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