1 / 35

IATA e-freight

Simplifying the Business. IATA e-freight. IATA e-freight: is a priority for the industry. IATA’s Board of Governors have mandated a project designed to remove all the paper for all stakeholders from air cargo transportation by 2010 This project is now called IATA e-freight

blakeney
Download Presentation

IATA e-freight

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Simplifying the Business IATA e-freight

  2. IATA e-freight:is a priority for the industry • IATA’s Board of Governors have mandated a project designed to remove all the paper for all stakeholders from air cargo transportation by 2010 • This project is now called IATA e-freight • E-freight has a “pilot” programme to accommodate those parties that are able to free their supply chain processes from paper by 2007 • The project has the full support from the industry: Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  3. Air Cargo Industry: Needs to change A good news story… • Until recently air cargo carriers outperformed passenger carriers …but a traditionally complex business • Average consignment E2E transport time stuck at 6.5 days • Average 38 paper docs accompany MAWB for each consignment • 35 million AWBs …. facing increasing challenges • Fuel cost: now accounts for 25% of airline costs • Reducing volumes: 13.4% in 2004 to 3.6% in first 8 months of 2005 Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  4. Strong forces for e-freight Security • Customs demanding advanced electronic manifest information • Large penalties for non-compliance • Need for globally coordinated drive for industry simplification Customers (world trade) • Shippers, manufacturers and importers—for their own efficiency Efficiency • Our industry is carrying paper-work costs it can no longer afford. Alignment and Mobilization • Many are joining forces: IATA, WCO, WTO, FFI, Cargo 2000, UN CEFACT, US agencies Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  5. The increasing pressure for e-freight C2K GHA’s Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  6. IATA e-freight:document issues • Today there are several problems with the manual creation and handling of paper documents • Missing / incomplete documentation • Slows down the process • Customs “holds and snagging” • Security aspects from customs regarding time and quality • Documents accompany the freight • Handover points • Duplication • Manual Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  7. So, are we entering a paperless era?  Paperless? An air cargo industry which prints no paper Paper-Free? Air cargo industry processes which are not paper-dependent Paper-Work? Air cargo industry cost of processing paper, including data quality IATA e-freight: Delivers a paper-free industry reducing paper-work!   Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  8. IATA e-freight: in a nutshell • What is it? • A joint air cargo industry programme of carriers, forwarders and customs, led by IATA • Aimed at eliminating need to produce and transport all paper documents for air cargo shipments • What is it worth? • 1.2b US$ air cargo supply chain cost saving, driven by 80% reduction in cost of paper-work • When will full benefits be delivered? • Dec 2010 onwards with early adoption Dec 2007 onwards • What is our approach? • Business change supported by automation if necessary • E-freight complimentary but aligned to Cargo 2000 • E-freight will enable enhanced supply chain integrity to customers Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  9. All cargo (general & special) Air freight Forwarder to consignee Eliminating the need to produce and transport typical paper documents IATA e-freight:business vision 2020 2010 Vision 2007 Scope / Objectives • Eliminate the need to produce and transport all paper documents within the full multi-modal • Shipper to consignee supply chain (buyer to seller) for all cargo at a piece level • e-billing • e-booking Scope / Objectives • Early adopters (airlines & forwarders) on specific trade flows (general) • Air freight • Global implementation enabling world trade air cargo volume to operate IATA e-freight (general & special) Quality Management System Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  10. IATA e-freight:engaging stakeholders • IATA has formed an Industry Action Group representing air cargo stakeholders made up of Airlines, the World Customs Organization and Freight Forward International • The process is complex with more than 16 000 stakeholders including: • 270 carriers • 200 customs authorities • Well over 15 000 freight forwarders • At least 20 industry bodies • Ground Handlers Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  11. IATA e-freight:challenges • Customs commitment to e-customs & IATA e-freight • Customs present both a challenge and opportunity as a force for change • Industry engagement across the supply chain; • It is critical that all stakeholders in the air cargo industry are engaged Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  12. IATA e-freight: project structure • The Project is divided into three Streams; • Business Stream; • Facilitates local implementation plans, process and messaging standards, IATA e-freight business requirements and other IATA e-freight business process related matters • Legal Stream; • Facilitates the identification of legal, governmental, regulatory, and treaty issues and the generation of solutions for the same. Supports the IATA e-freight programme with legal analysis & advice • Technical Stream; • Facilitates technical direction, technical requirements, systems solutions and delivery, and other IATA e-freight systems related matters Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  13. ScopeJune 05 ProcessSep 05 PilotsApr 06 DeliveryJun 07 Business Stream Vision, Scope &Objectives Process alignment Preparation Implementation • Business workshops • Document analysis • Multi modal / end-to-end • 2007 early adopters • 2010 market penetration • Beyond 2010 full multi-modal • Customs (WCO) • Industry (C2K) • Standards (UN CEFACT) • Policy • Smart pilot selection • Standard delivery plans • Cargo Committee Commitment • Airline fast track • Country and cluster workshops • Major trade lanes • Cluster delivery Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  14. Process & Data :primary docs identified Key Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  15. Process & Data:“to-be” data flows mapped Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  16. IATA e-freight: identifyingpilot countries • Smart pilots survey conducted Q4 2005 • Covered all airlines globally • Targeted specific Customs authorities and freight forwarders • Determined high level messaging capability and interest to participate in e-freight trials • Pilots filtered on volume and messaging capability for customs, carrier, forwarder Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  17. IATA e-freight: customs surveyed • Canada • United States of America • Chile • Sweden • United Kingdom • Germany • Netherlands • Spain • South Africa • Dubai (UAE) • China • Hong Kong • Singapore • Malaysia • Korea (south) • Japan • Australia Chosen on the basis of:- • WCO recommendations • Global cargo volume • Geographical split Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  18. IATA e-freight: forwarders surveyed • Total number of Freight Forwarder locations (16 countries): 96 • Total number of Freight Forwarder companies: 58 • FFI members 8 • Others forwarders 50 Involving the wider community of freight forwarders will be key Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  19. IATA e-freight:plan for pilot country selection Systems/BusinessJan 06 Legal - MOUs Early Adopters Feb 06 Legal – Government Audit Mar 06 – May 06 Legal – Assess TreatiesMay 06 Legal - MOUs Local ClustersMay 06 Obtain Commitment From Early Adopter Airlines Analyzing Horizontal and Vertical Surveys Government and Customs Audit Assess Impact of Treaties Obtain Commitment Local Clusters • Analyze airline response. • Analyze Vertical response. • Initial Selection Smart Pilot Countries. • Conduct country governmental and customs audit. • Refine selection of Pilot Countries based upon results. • Assess need to add countries to and/or amend list of Pilot Countries. • Government treaties audit. • Use MP4/MC99 treaty matrix to assess status of treaty ratification and compatibility of Pilot Countries. • Use results as filter for further screening of pilot countries to refine selection and create Local Clusters. • Obtain MOUs from all other stakeholders involved in Local Clusters: Airlines, Freight Forwarders, and Customs Authorities. • During Cargo Week, Obtain commitment from Cargo Committee Airlines. • Obtain commitment from other participating non-Cargo Committee Airlines (Air Canada, Iberia). Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  20. Governmental, Customs, and RegulatoryIssues • Customs Authorities Must Adopt, Develop, and Implement a WCO Compliant Single Window Concept • Determine whether each customs authority intends to develop and implement a single window concept • Determine whether and extent to which the custom authority’s single window concept is compliant with the WCO Data Model • Determine manner in which it differs from the WCO Data Model • Determine manner in which the custom authority’s single window concept allows for the identification and recognition of Authorized Economic Operators • Determine realistic timeline within which the customs authority will be able to implement the single window concept • Determine the legislative and regulatory environment that must exist within the government in which the customs authority operates for the single window to implemented • Determine whether the government’s customs code or similar construct need to be expanded and/or amended • Identify branches of government involved in these processes • Identify what the processes entail and determine timelines within which the governmental and regulatory environment of the government will be ready for implementation of the single window Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  21. Governmental, Customs, and RegulatoryIssues • Ownership of Customs Data - Responsibility for inaccurate and incomplete data • Determine laws and regulations that exist within each government regarding liability for inaccurate and incomplete data • Develop industry position (for airlines, forwarders, customs authorities) and push governments to adopt the same • Authentication of Data and Electronic Signature Requirements • Determine status of each government with respect to the regulations and requirements for authentication of data and electronic signatures • Ownership of Documents • Determine which, if any, documents within each government’s e-freight air cargo supply chain have ownership issues attached at the international, national, local, or private level Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  22. Treaties: assessing the globe • Warsaw Convention (for the Unification of Certain Rules for International Transportation by Air) and Warsaw as Amended by the Hague Protocol. • Paper air waybill required for carrier to assert liability limits stated in Warsaw, Warsaw-Hague. • Montreal Protocol No 4 (MP4) (Amends Warsaw Convention) • Allows electronic air waybill. Carrier may assert liability limits stated in Warsaw-Hague. • Montreal Convention 1999 (MC99) (for the Unification of Certain Rules for International Carriage by Air) • Allows electronic air waybill. Carrier may assert liability limits stated in the Montreal Convention. • New Treaty. Prevails over Warsaw and MP4. • Government of Origin and Destination must be party to the same treaty (MP4 or MC99) for the treaty to apply Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  23. Treaties:status of “smart pilot” governments Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  24. Pilot clusters: selection criteria • Matching treaties for MC99 & MP4 countries • Minimum 1 EU country in each cluster • Easy to expand to other EU countries • Easy to transfer to another EU country if one drops out • Risk assessment of likely compliance • Put countries more likely to drop out in separate clusters • Trade volumes • Ensure at least 1 large trader in each cluster • IAG Champion in each cluster to drive implementation Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  25. e-freight implementation: capability roadmap Shipper Forwarder 1 Customs 1 Forwarder 2 Customs 2 Shipper e e e Customs 3 Forwarder 3 Customs 4 Forwarder 4 Shipper Customs 5 Shipper Forwarder 5 Customs 6 Shipper infrastructure in place Forwarder 6 Carrier infrastructure in place Customs SW roll-out Forwarder infrastructure in place Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  26. IATA e-freight: pilot clusters CA SE GB DE NL US CN HK ES JP UAE KR MP4 MY SG MC99 MC99? Both CL AU ZA Neither Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  27. Pilot clusters: why 4- 5 countries per cluster? • Simplifies pilot implementation • If all 17 pilot countries set up e-freight pilots with each other, 136 pairs of O&D pilot e-freight lanes would have to be set up • Enables more penetration opportunity than simply grouping countries in pairs • Protects against the risk of individual countries dropping out • Remaining countries in the cluster will still have e-freight partners to work with Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  28. IATA e-freight:businessimplementation plans HandshakesMar 06 PlanFeb 06 AgendaFeb 06 OrganizeFeb 06 WorkshopsMay 06 >> Develop Global Implementation Plan Complete Global Agenda Organize Local Workshops Meet with StB Reps Workshops • Develop global standard implementation plan • Output; Provide a “standard” implementation plan for country managers • Clear idea of e-freight deliverables for 2006 • Output; Standard Agenda do be distributed to StB Reps • Develop strategy for organizing meetings, where, when and who • Output; Draft workshop plan per cluster: • Implementation Managers meeting • Output; Agree on plan, deliverables, targets, roles and responsibilities • Initiate workshops • Output; Workshop deliverables Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  29. IATA e-freight:global implementation plan • The IATA Business Process Stream will develop a global “standard” implementation plan which will be used as the basis for each individual pilot country’s implementation plan • The global plan will be tailored to fit each local situation – at country and cluster level – by the local StB representative with support from the central e-freight team • The overall management of each local plan will be coordinated by IATA Regional Programme Managers (RPMs), with support from the central IATA e-freight project team Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  30. IATA e-freight:local implementation plans The e-freight implementation plan for 2006 includes three workshops per country • For economic areas with several potential participating countries and a single Customs Code, country workshops will be combined to ensure a common approach. This applies to EU and ASEAN and will reduce the total workshop requirement • Some of these workshops will be for “clusters”, enabling O & D country pairs to prepare for implementation Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  31. Technical Stream IndustryAuditJul 05 Technical SolutionsNov 05 Supplier CoordinationJune 06 Delivery Jul 07 Current Technicalcapabilities Technicaldirection Alignment Implementation • Air freight industry • Airlines • Freight Forwarders • Related industries • Technical workshops • CCS • E-commerce • RFI • Supplier workshops • Technical workshops • WCO data model v2/3 • UN CEFACT • C2K / WCO Process • Detailed requirements • E-freight timelines • Preferred supplier(s) • Contracts / MoU’s • Develop • Test • Technical accreditation • Pilot Implementation Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  32. Technology:options to support delivery • Fully commercial environment • Three potential options in a fully commercial environment • Those Who Can, Do • Independent, industry neutral body • Commercial Solutions • Directions not exclusive • Multiple providers • Combinations inevitable in a commercial environment Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  33. Milestones 2005 2006 2007 Pilots Scope Process Vision, Scope &Objectives Process alignment Pilot preparation Pilot Implementation Business LegalCountry LegalFrameworkDevelopment Carriage Treaties /limitations Government & Customs Cluster commitment Legal solutions Legal TechnicalSolutions SupplierCoordination IndustryAudit Current Technicalcapabilities Technicaldirection Alignment Implementation Technical Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  34. C2K Gathering Momentum 16 x Customs World CustomsOrganization (WCO) HongKong TradeVision 50+ Freight Forwarders Singapore TradeXchange IATA e-freight 6 x Airlines 9 x Forwarders 14 x Airlines E-customs CEFACT UN e-docs UnitedNations ASW ASEAN Simplifying the Business Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2005

  35. 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

More Related