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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013

e-freight
fundamentals

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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013


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


Shipper
Export
Customs/
Regulators
Import
Customs/
Regulators
Origin
Forwarder

Carrier
Consignee
Destination
Forwarder
Origin
GHA
Destination
GHA
Safe, Secure, Reliable, Efficient
e-freight Vision
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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-freight fundamentals (1/3)
e-freight is about building a paper free air cargo supply chain

It includes a set of business processes and standards that allow to
remove paper documents from the process of shipping air cargo from
origin to destination

Documents are replaced with the exchange of electronic data

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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-freight fundamentals (2/3)
The e-freight initiative identifies the locations where those electronic
standards can be used

The e-freight initiative drives adoption of those standards by industry
participants via targeted change management initiatives
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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-Doc standards used as part of e-freight rely on use of EDI (Cargo-
IMP or XML) or scanned images (for some documents)

e-freight uses the existing air cargo industry messaging
infrastructure. Participants must use in-house technology to connect
to their partners or use tools provided by their partners or 3rd party
providers
e-freight fundamentals (3/3)
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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
Shippers
Export
Customs
Import
Customs
Origin
Freight Forwarders

Carrier
Consignees
1. Invoice
2. Packing List
3. Certificate of Origin
4. Letter of Instruction
5. Dangerous Goods Declaration
6. CITES certificate*


7. Master Air Waybill
8. House Waybill
9. House Manifest
10. Export Goods Declaration
11. Customs Release Export
Destination
Freight Forwarders
19. Import Goods Declaration
20. Customs Release Import
12. Flight Manifest
13. Transfer Manifest
14. Export Cargo Declaration
15. Import Cargo Declaration
16. Transit Declaration*
17. Security Declaration*
18. Freight Book List*
Origin
GHA
Destination
GHA
Scope: e-freight documents
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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
Cost:
Eliminate paper handling, transporting and processing cost
(eliminates data re-capture)
Time:
Reduced freight wait time
Quality:
Unified Quality Management Standards
Visibility:
Quality electronic messaging for tracking status of freight
Sustainability:
Contribute to environment by reducing paper consumption
e-freight: Why do it?
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42
Locations LIVE
437
Airports LIVE
Graphic figures
are based on
October 2012 data.
Overall e-freight
penetration
reached 14% on
trade lanes that
were live at the end
of 2010.
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Monthly EF Volume (last 12 months)
Total EF Consignment EAP
EAW EF Penetration between live partners
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-freight Status end Oct 2012
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IATA published the Cargo-XML Manual and
Toolkit (1
st
Edition) containing the following 14
Cargo-XML Messages:





INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
Cargo-XML Standards for e-freight
Transport Messages Acronym
XML Waybill
XFWB
XML House Waybill
XFZB
XML House Manifest
XFHL
XML Flight Manifest
XFFM
XML Freight Booked List
XFBL
XML Status Message
XFSU
XML Response Message
XFNM
XML Booking Message
XFFR
XML Custom Status Notification
XCSN
Commercial Messages Acronym
XML Shippers Declaration for Dangerous
Goods
XSDG
XML Invoice
XINV
XML Packing List
XPCL
XML Certificate of Origin
XCOO
XML Shippers Letter of Instruction
XSLI
Note: IATA also developed CITES permit and Transit Declaration
in conjunction with respective organizations i.e. Convention on
International Trade in Endangered Species (CITES) and World
Customs Organization (WCO)
For further details about Cargo-XML standards please visit www.iata.org/cxmltf


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2009 2010 2011 2012 2013 2015 2014
2006 2007 2008
Drive Roadmap towards
100% paperless
Project Kick -Off
Pilots in six
locations
(1)
First e-FOPs
(2)
GACAG
Roadmap

(1) Canada, Hong Kong, Netherlands, Singapore, Sweden, United Kingdom
(2) e-freight Operational Procedures
Develop missing
standards
Build the route network
(location Capability)
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-freight development life cycle
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In 2012 GACAG adopted a
three-pillar Roadmap to achieve
paperless transportation
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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Three Pillars towards paperless


Shipper
Export
Customs/
Regulators
Import
Customs/
Regulators

Carrier
Consignee
Origin
GHA
Destination
GHA
Pillar I Establish Route
Network (enabler)
Engage regulators to create
network where customs are
electronic and regulatory
environment supports paperless
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
Pillar I
Pillar II
Pillar III
*Air Waybill, House Manifest, Flight Manifest, (Consignment Security Declaration is anticipated)
Origin
Forwarder
Destination
Forwarder
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
What is required for
e-freight to work?
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II Removal of Core
Transport Docs
III Removal of pouch
Shipper
Customs
and
Regulators
Forwarder
Handler
I Global e-freight
Network
IATA IATA FIATA & GSF
Forwarder
Airline
Pilots in two BRIC
locations
45% trade lane coverage
e-AWB 20% penetration
Industry plan to digitize
commercial docs
Airline
80% world trade lanes 100% paperless *
Use of e-pouch for
general cargo
Key
Stake-
holders
2013
Target
2015 Goal
Lead
*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration
Pillar I

Electronic Customs environment

Ability to make customs declarations
electronically (export and import)
No requirement to show original paper
documents for invoice and packing lists during
or post transit
Electronic docs (invoice/packing list) must be
accepted in electronic format, or printed copy


INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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Key electronic customs requirements
for e-freight
Customs should accept:

Electronic as an alternative to paper-based requirements
Goods & cargo declarations exchanged electronically
Release & control notification exchanged electronically
Supporting documents exchanged electronically
Messages & supporting documents archived electronically
Paper by exceptions e.g. for examination
Paper printout of electronic records instead of paper originals at least for invoice and
packing list, master air waybill and house air waybill (including for post-flight audits)
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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e-freight trade & transport
messages should feed
Customs messages, reducing
manual entries and
increasing Quality
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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Pillar II

Electronic communication
between FF-Airline-GHA

Ability to communicate FWB and FHL information
between FF-Airline-GHA systems (or capture
information on airline web portal)
e-AWB agreements signed and implemented (currently
optional for e-freight but mandatory as of Jan 2013)
Procedures defined between FF-GHA-Airline to accept
freight at acceptance counter (origin) and for freight
delivery (destination) without original paper docs (may
require use of a shippers delivery note or warehouse
receipt)
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
II Removal of Core
Transport Docs
III Removal of pouch
Shipper
Customs
and
Regulators
Forwarder
Handler
I Global e-freight
Network
IATA IATA FIATA & GSF
Forwarder
Airline
Pilots in two BRIC
locations
45% trade lane coverage
e-AWB 20% penetration
Industry plan to digitize
commercial docs
Airline
80% world trade lanes 100% paperless *
Use of e-pouch for
general cargo
Key
Stake-
holders
2013
Target
2015 Goal
Lead
*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration
II Removal of Core
Transport Docs
III Removal of pouch
Shipper
Customs
and
Regulators
Forwarder
Handler
I Global e-freight
Network
IATA IATA FIATA & GSF
Forwarder
Airline
Pilots in two BRIC
locations
45% trade lane coverage
e-AWB 20% penetration
Industry plan to digitize
commercial docs
Airline
80% world trade lanes 100% paperless *
Use of e-pouch for
general cargo
Key
Stake-
holders
2013
Target
2015 Goal
Lead
*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration
*Air waybill, House Manifest, Flight Manifest, Consignment Security Declaration
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Flight Manifest
House Waybill
Master Air Waybill
House Manifest
House Waybill
Cargo Declaration
Goods Declaration
Invoice Invoice
Packing List Packing List
Air Waybill
T
r
a
d
e

T
r
a
n
s
p
o
r
t
a
t
i
o
n

C
u
s
t
o
m
s

Invoice
Packing List
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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Pillar III

Electronic communication
between origin and destination
forwarder/consignee

Ability of origin forwarder to communicate key
documents to destination forwarder, broker and
shipper electronically (house air waybill, invoice,
packing list)
Ability to archive documents electronically (e-
Archiving)
Once the above are in place, the forwarder does not
need to provide these documents to the airline for
carriage to destination (Elimination of the document
pouch for general cargo documents, reduced pouch
for other cargo that needs special cargo docs in the
pouch)


INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
II Removal of Core
Transport Docs
III Removal of pouch
Shipper
Customs
and
Regulators
Forwarder
Handler
I Global e-freight
Network
IATA IATA FIATA & GSF
Forwarder
Airline
Pilots in two BRIC
locations
45% trade lane coverage
e-AWB 20% penetration
Industry plan to digitize
commercial docs
Airline
80% world trade lanes 100% paperless *
Use of e-pouch for
general cargo
Key
Stake-
holders
2013
Target
2015 Goal
Lead
*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration
II Removal of Core
Transport Docs
III Removal of pouch
Shipper
Customs
and
Regulators
Forwarder
Handler
I Global e-freight
Network
IATA IATA FIATA & GSF
Forwarder
Airline
Pilots in two BRIC
locations
45% trade lane coverage
e-AWB 20% penetration
Industry plan to digitize
commercial docs
Airline
80% world trade lanes 100% paperless *
Use of e-pouch for
general cargo
Key
Stake-
holders
2013
Target
2015 Goal
Lead
*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration
III Removal of the pouch
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Appendix


e-freight: end-to-end data flow for General Cargo
e-freight: Principles
e-freight: find out more
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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In the paperless environment, data flows match the
requirements of each party for information

The following diagram represents one possible data flow
scenario

Other scenarios exist based on the location, the nature of the
cargo, or the specific arrangement between the parties
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-freight end-to-end data flow
for General Cargo
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Export Customs
Flight Manifest
Air Waybill
House Manifest
Cargo Acceptance
Export Cargo Decl. /
Customs Release Export
Import Customs
Air Waybill
House Manifest
Invoice
Packing List
Air Waybill
House Manifest
House Waybill
Export Customs
Export Goods Decl. /
Customs Release Export
Invoice
Packing List
Invoice
Packing List
Origin
Freight Forwarders
Information flow EDI
Freight flow
Carrier
Consignees
Shippers
Import Cargo Decl. /
Customs Release Import
Import Customs
Import Goods Decl. /
Customs Release Import
Destination
Freight Forwarders
Information flow EDI or Scan
e-freight end-to-end data flow for General Cargo
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
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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 and 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)

INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-freight: Principles (1/2)
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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
INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
e-freight: Principles (2/2)
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INTERNATIONAL AIR TRANSPORT ASSOCIATION 2013
Tools provided by IATA to support you:

e-Cargo Matchmaker: who does e-freight where
e-freight complete Case Studies
e-freight Handbook: implementation guide
e-freight self-assessment questionnaire
e-freight Model EDI agreement (for e-AWB)
Capability Matrix of IT Providers

www.iata.org/e-freight and www.iata.org/e-AWB

e-freight: Find out more