IATA e-freight Patrick Murray IATA e-freight

1. Simplifying the Business IATA e-freightPatrick Murray IATA e-freight

2. IATA e-freight: Purpose • 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 Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

3. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

4. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

5. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

6. 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 1st wave pilot countries have been identified and a commitment meeting schedule planned. • A Message Improvement Program is under development. Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

7. IATA e-freight: Pilot ImplementationPlan “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 2007. • 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

8. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

9. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

10. IATA e-freight: Standards, where are we ? Documents required for the clearance of general freight Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

11. IATA e-freight: Standards, where are we ? Documents required for the clearance of “special” freight Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

12. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

13. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

14. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

15. 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 Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

16. IATA e-freight:How to stay connected! http://www.iata.org/whatwedo/simplibiz1 Click on the StB Support Portal button Updates • FAQs • Materials • Log request for follow up • StB eNewsletter Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005