e-freight Sycaff Jan 26th 2012

1. e-freightSycaff Jan 26th 2012 Guillaume Drucy Head, Cargo e-business

2. e-freight – end to end paperless process for air cargo transportation Shippers Carrier Origin Freight Forwarders Destination GHA Origin GHA Export Customs Import Customs • Invoice • Packing List Destination Freight Forwarders 3. Master Air Waybill 4. House Air Waybill 8. House Manifest 9. Flight Manifest 5. Export Goods Declaration 6. Export Cargo Declaration 7. Customs release Export 10. Import Cargo Declaration 11. Import Goods Declaration 12. Customs release Import • Set of business processes and standards for data exchange and removal of paper Consignees Cargo Media Day 2011

3. Electronic Customs/regulatory environment Origin FwR Dest. FwR Shipper GHA Carrier GHA Consignee • Customs declarations electronic • Invoice/packing list) accepted in electronic format, or printed copy Export Customs Import Customs Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2011

4. Electronic communication between forwarder, airline and handler Origin FwR Dest. FwR Shipper GHA Carrier GHA Consignee - Communicate electronic data (FWB and FHL messages) or capture information on airline web portal • e-AWB implemented (currently optional for e-freight but mandatory as of Jan 2013) • Paperless acceptance counter and freight delivery (destination) without original paper docs (may require use of a shippers delivery note or warehouse receipt) Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2011

5. Electronic communication between origin and destination forwarder/consignee Origin FwR Dest. FwR Shipper GHA Carrier GHA Consignee - Communicate key documents to destination forwarder, broker and shipper electronically (house air waybill, invoice, packing list) • Ability to archive documents electronically (e-Archiving) • Elimination of the document pouch for general cargo documents, reduced pouch for other cargo that needs special cargo docs in the pouch Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2011

6. Lowers industry costs Transfer time Errors in data Carbon footprint Why e-freight – key benefits Key Facilitator for Security Cargo Media Day 2011

7. Benefit example: Single Data Capture • 37% of data in HAWB comes from Invoice, Packing List, COO (CAAS Study) • Significant savings on re-entry of MAWB/HAWB data by airline/handler on freight acceptance Cargo Media Day 2011

8. Benefit example: Simpler Freight Acceptance Process at Origin 1. Documents acceptance 2. Freight acceptance Traditional process 1. Freight and data acceptance Paperless process Cargo Media Day 2011

9. e-freight status – Dec. 2011 42 Countries/SARs 100+ Major Airports 42 Live airlines 400+ Forwarders 9.4% Live trade lanes* *Trade lanes live at end 2010 Cargo Media Day 2011

10. Critical factors of change • Customs and regulatory support • Airline readiness (IT legacy) • Airline-Handler interface • Data quality • Forwarder capability and awareness Cargo Media Day 2011

11. Local Local Local: (EF@NL, EF@SIN, Task Forces, and now Sycaff e-freight commission!) Local Approach 2012 and beyond: collaboration Global • Global: • GACAG e-Commerce Task Force (GECTF), • e-freight Central Action Group (eCAG) Cargo Media Day 2011

12. Priorities 2012 Customs / regulatory FF-Airline-GHA interface FF-Shipper interface • Expand network (priority BRIC) • e-AWB 15% (Board target) • Assess and promote technology solutions – e-pouch • Multilateral e-AWB agreement • Improve support in existing countries/ locations (US and others) • Improve industry data quality (FWB/FHL) • Proof of concepts for e-SDDG and e-Security Declaration • Upgrade IHM • (Ground Handling) Review overall Roadmap to 100% e-freight with GACAG partners Cargo Media Day 2011