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e-freight Roadmap December 2012

e-freight Roadmap December 2012. Background. Through 2012, the GACAG e-Commerce Task Force (ECTF) has conducted a review of the e-freight initiative

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e-freight Roadmap December 2012

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  1. e-freight Roadmap December 2012 GACAG e-Commerce Task Force 2012

  2. Background • Through 2012, the GACAG e-Commerce Task Force (ECTF) has conducted a review of the e-freight initiative • The goal was to define a joint air cargo industry approach that GACAG members can consider adopting to drive implementation of paperless transportation processes in future • This document presents the new e-freight ‘Roadmap’ endorsed by each GACAG association memberships • It will form the basis for managing e-freight as an air cargo initiative moving forward GACAG e-Commerce Task Force 2012

  3. Contents • e-freight vision • Principles to support the vision • ‘Three Pillar’ Roadmap Approach • The Three Pillars • Proposed Targets • Roles • Items identified for GACAG collaboration (to date) • Governance • Next steps ALSO IN APPENDIX: • Current Status, Details on governance, Draft future scorecard, Scope of documents per Pillar, Details on targets (foot-notes), ‘What this roadmap aims to deliver’ (Text) GACAG e-Commerce Task Force 2012

  4. GACAG e-freight vision Shipper Carrier Origin Forwarder Destination GHA Origin GHA Consignee Destination Forwarder Export Customs/ Regulators Import Customs/ Regulators ‘Building and implementing an end-to-end paperless transportation process for the air cargo industry where paper documents are replaced with the exchange of electronic data’ GACAG e-Commerce Task Force 2012

  5. Principles (1/2) In support of the vision to build and implement an end-to-end paperless process for the air cargo industry, GACAG members have identified the following principles : The initiative shall: Aim to achieve data capture at source (to avoid re-keying) Adopt end-to-end supply chain vision: shipper to consignee (to enable single data capture) Encompass customs, security, transportation and other relevant documents that are part of the freight transportation process Include legal, regulatory, business and technology elements in the definition of paperless processes Rely on e-Document standards and common business processes (defined in e-freight Operating Procedures – e-FOP) that are aligned with international standard setting bodies (WCO, UNCEFACT, ICAO, etc.) Allow paper to still be present by exception as required by local processes and based on electronic source data (print-on-demand) GACAG e-Commerce Task Force 2012

  6. Principles (2/2) In support of the vision to build and implement an end-to-end paperless process for the air cargo industry, GACAG members have identified the following principles : The initiative shall: Not rely on single industry technology platform: each participant remains responsible for managing their own data Use existing industry EDI infrastructure where sufficient, but upgrade where relevant Drive emergence of solutions that facilitate adoption by all parts of the supply chain, and all types of organizations (large and small) Identify workable migration paths from current paper based processes to paperless processes Define a roadmap towards 100% paperless that splits the vision in manageable components with specific deliverables over time GACAG e-Commerce Task Force 2012

  7. Three Pillars to drive towards the vision Shipper Carrier Destination GHA Origin Forwarder Origin GHA Consignee Destination Forwarder Pillar III Pillar II Export Customs/ Regulators Import Customs/ Regulators Pillar I Pillar I– Establish Route Network (enabler) • Engage regulators to create network where customs and regulatory environment allows for digitization of 12 core industry docs* Pillar II – Implement Paperless ‘airport-to-airport’ • Digitize core transport docs: Air Waybill, House Manifest, Consignment Security Dec. (CSD), Flight Manifest • Goal: Paperless acceptance and delivery of freight, airport to airport. Pillar III – Implement Paperless ‘door-to-door ‘ • Digitize core commercial docs (invoice/Packing list/HAWB) and Special cargo docs • Goal: Removal of document pouches, shipper to consignee *Customs Export and Import Goods, Cargo and Release (6 docs), Air Waybill, House Manifest, Flight Manifest, Invoice, Packing List, House Waybill GACAG e-Commerce Task Force 2012

  8. Targets – 2013-2015 Pillar I. e-freight Route Network Pillar II. Core transport docs (Airport-to-airport) Pillar III. Commercial docs (Door-to-door) Key goal: Full industry capability for paperless A2A on e-freight Network by 2015 Key goal: Define industry plan for digitization of commercial and special cargo docs Key goal: 80% network coverage by 2015 Specific Targets: Specific Targets: Specific Targets: e-freight market coverage: • 2013: 45% • 2014: 60% • 2015: 80% (Note: specific documents could be digitized on a larger Network than just the e-freight trade lanes. This will appear in document specific scorecards) e-AWB Penetration: • 2013: 20% • 2014: 50%, • 2015: 100% e-House Manifest:100% capability by end 2015 e-flight Manifest:100% capability by end 2015 e-CSD:complete standard, and regulatory acceptance in a set of locations by end 2015 By mid 2013: • Doc. specific roadmaps defined for: Invoice, Packing list, House Way Bill, Shippers Dec. for DG By end 2013: • Doc. specific roadmaps for Certificate of Origin (CoO), Letter of Credit (LoC), Health and CITES (priority on CoO, LoC) GACAG e-Commerce Task Force 2012

  9. Roles Program Management 1. Creation of Route Network 2. Digitization core transport documents 3. Digitization commercial documents • Project management: IATA(1) • Lobbying activities: Led by IATA with support from all GACAG organizations and their members • Local implementations: led by local industry leaders(2) • e-AWB: IATA project management in close collaboration with FIATA(3) • e-House Manifest: IATA project management with support from FIATA • Flight manifest: IATA • e-CSD: IATA project management, in collaboration with FIATA - e-SDDG, Health Certificate: IATA leader - Other documents: leadership from FIATA/GSF with methodological support from IATA (1)Specific ad-hoc plans to be defined for key locations. IATA will also work with WCO for engagement of country customs and regulators (2)Depending on location can be: airline/FF/customs/airport authority/possibly ground handlers (3)Management via EAWBAG and via bilateral IATA-FIATA collaboration. See specific items of collaboration identified to date on next slide Overall program secretariat, reporting tools, scorecards, and other supporting tools as needed (such as Matchmaker) are also provided by IATA GACAG e-Commerce Task Force 2012

  10. GACAG collaboration on Pillars II/III Actions identified to date II. Digitization core transport documents III. Digitization commercial documents • IATA/ FIATA jointly develop multilateral agreement for e-AWB • FIATA: seek to identify e-Products for SME members • IATA to push airlines to become e-AWB capable • Ensure right approach to implementation through EAWBAG (leadership from national airlines first) • IATA/ FIATA to discuss ways to promote benefits to airline/forwarder community • Adjust e-AWB standard in view of any impact from change in forwarder/airline relationship (agent vs. principal) • Project to review the specific issue of transfer of data/e-Documentation at destination – issue any recommendation as needed • Technology: IATA to discuss with FIATA how technology suppliers can better integrate e-Products into current software solutions • Invoice/ Packing List: GSF surveying members for interest in digitizing core commercial documents • Special docs (LoCs, CoOs): GSF engaging regulators of Letter of Credit and Certificate of Origin to understand status • e-SDDG: IATA will conduct in 2H12 a campaign for e-SDDG acceptance GACAG e-Commerce Task Force 2012

  11. Each document must go through three stages for full digitization 1. Development of e-document standard 2. Regulatory adoption (global and local) 3. Industry adoption • Identify or define standard • Conduct Proof of Concept • Define supporting Business Processes • Not always required (depends on document) • Can be conducted in parallel to stage 2 • Needs supporting business processes and technology • To drive through these steps, individual Task Forces or Working Groups may be required for specific documents, within the context of the overall e-freight initiative • The e-freight governance will reflect this reality while maintaining overall consistency and end-to-end vision via the key role of the e-freight Central Action Group (eCAG)

  12. Industry Leadership – e-freight Supports objectives Provides strategic guidance Identifies actions GACAG members or their organizations can take in support of vision Helps engage regulators, stakeholders, leaders as relevant GACAG e-Commerce Task Force (ECTF) Industry Guidance e-freight Central Action Group (eCAG) Overall vision, targets, strategic approach e-freight overall Governance Network dvlpmt Transport docs Commercial docs Document specific or lobbying focused groups (part of e-freight program structure, or IATA Cargo Services Conference, or other) LAPB* (Health Certificate) Local e-freight Support Groups in key non-live locations (Brazil, Russia, India, China,...) e-AWB Advisory Group (EAWBAG) e-House Mfest Task F. (EHMTF) e-SDDG Task Force Digitization of specific documents and/or engagement of regulators. e-CSD Task Force e-Flight Manifest TF? Other docs in future? Note: groups with dotted line box do not currently exist, potentially to be created in future (GACAG members remain responsible for endorsement of e-freight roadmap related items by their own governance structure and membership, if and when they see fit) GACAG e-Commerce Task Force 2012

  13. Appendix

  14. Current status – for reference I. Creation of Route Network (Regulatory/Customs component) II. Digitization of core transport documents (Industry driven) III. Digitization of commercial documents (Industry/ Regulatory) • 14,000 ‘pouch-less’ e-freight shipments (EAW) in May 2012, representing 25% of total e-freight shipments, and under 1% of global market • 42 locations (country/admin regions) and 100+ airports representing 33% worldwide volumes (May’12) • e-AWB:~5% penetration* (July 12) • e-House Manifest and e-flight manifest: no measure yet** • e-Consignment Security Declaration: not live yet*** • *On non-Warsaw trade lanes • **Creation under review by project team • ***Three PoCs under way in 2012 GACAG e-Commerce Task Force 2012

  15. Possible future e-freight scorecard Network development (e-Customs Network) Digitization transport docs Digitization commercial docs (plus scorecards per documents to be defined) All numbers for illustration purposes only GACAG e-Commerce Task Force 2012

  16. Other industry working groups supporting e-freight (for reference) • XML standards Cargo XML Task Force (CXMLTF) LAPB • Paperless standards for freight acceptance and release Network dvlpmt Transport docs Commercial docs Cargo Operations Advisory Group (COAG) ? e-AWB Advisory Group EAWBAG e-House Mfest Task Force EHMTF e-SDDG Task Force Customs Action Group (CUSAG) • Advanced Cargo Security e-CSD Task Force e-Flight Mnfst TF? Other docs? Other docs? Vendor Action Group (VAG) • Engagement with vendors e-freight Central Action Group (eCAG) GACAG e-Commerce Task Force 2012

  17. Scope of documents for e-freight three Pillars I. Creation e-freight Route Network II. Digitization of core transport documents III. Digitization of commercial documents • Network (countries/airports) where paperless procedures can be implemented for a core scope of documents* (corresponding to General Cargo) • Implementation of: • e-AWB • e-House Manifest • e-flight Manifest • e-Consignment Security Declaration • Core commercial docs: Invoice, Packing list, House Air waybill • Special cargo docs: • Cites, Health Certificate, Certificate of Origin (CoO), Letter of Credit (LoC), Shipper’s Dec. for Dangerous Goods (SDDG) • *6 customs docs, 3 transport docs (Air Waybill, House Manifest, Flight Manifest), 3 commercial docs (Invoice, Packing List, House Waybill) GACAG e-Commerce Task Force 2012

  18. Details on targets – 2013-2015 I. e-freight Route Network II. Core transport docs (Airport-to-airport) III. Commercial docs (Door-to-door) e-freight market coverage(1): • 2013: 40-45%(1) • 2014: 60% • 2015: 80% e-AWB Penetration(2): • 2012: 15% • 2013: 30% • 2014: 70%, • 2015: 100% e-House Manifest:100% penetration or capability by end 2015(3) e-flight Manifest:100% capability by end 2015(4) e-CSD:complete standard, and regulatory acceptance in a set of locations by end 2015 By mid 2013: • Document specific roadmaps defined for: Invoice, Packing list, HAWB, SDDG • GACAG targets defined for volume of EAW e-freight shipments (shipments with no document pouches) By end 2013: • Document specific roadmaps for Certificate of Origin (CoO), Letter of Credit (LoC), Health, CITES (priority on CoO, LoC) (1) % air waybills covered by e-freight trade lanes. Key expansion drivers will be: USA (outbound), China, India, Brazil, Russia (2) On non-Warsaw (feasible) trade lanes (3) Pending review by e-House Manifest Task Force, which should recommend a measurement, either based on penetration or capability (by end 2012). (4) Pending review by eCAG *6 customs docs, 3 transport docs (Air Waybill, House Manifest, Flight Manifest), 3 commercial docs (Invoice, Packing List, House Waybill) GACAG e-Commerce Task Force 2012

  19. What this roadmap aims to deliver: • For House Manifest, this is for review by e-House Manifest Task Force by end 2012. There is no current measure for penetration. A possible alternative would be to measure a measure industry capability. • For the purpose of e-freight, general cargo is considered any cargo where only Flight Manifest/MAWB/House Manifest/Invoice/Packing List/HAWB/Security Dec and Customs Declarations would be present. Special cargo is any cargo where any other document is also present. 1) By end 2015, paperless “airport-to-airport” industry implementation covering up to 90% of global trade lanes with: Established industry capability to remove AWB, House Manifest, Flight Manifest & Security Declaration on these lanes 100% e-AWB & e-House Manifest adoption(1) 2) By end 2015, a paperless “door-to-door” environment covering 80% of global trade lanes where: Shipments of general cargo(2) can be transported with no paper (no pouch) from shipper to consignee (estimated to represent a potential of around 60% of all air cargo shipments) – based on regulatory environment and customs procedures Special cargo(2) can be transported with pouch 3) By end 2013, an approach to drive: Adoption by shippers and forwarders of e-Documents for invoice/packing lists/house waybills – would eliminate 60% or more of all ‘document pouches’ (targeting mid 2013 for a proposed roadmap for this component) Digitization of key special cargo documents (e-SDDG, Health, Cites, etc.) – would eliminate most of the remaining 40% of pouches (targeting end 2013 for a proposed roadmap for this component) GACAG e-Commerce Task Force 2012

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