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IATA Asia-Pacific Cargo Updates
4th Jun 2010, FAPAA ECM
Agenda
Update on IATA e-freight in Asia-Pacific
Introduction to IATA e-AWB
Update on CASS activities in Asia-Pacific
IATA Cargo AgendaProtect the Cash – Deliver quality at lower cost
CASS
Transform the Supply Chain IATA e-freight, Secure Freight, Cargo 2000
Deliver and Manage Supply Chain standardse-AWB
Create value to the Supply Chain with relevant Products and Services
CargoIS
IATA e-freight Update
IATA e-freight - Vision and Board Mandate
IATA Board mandate for end 2010:
Establish EF capability in all feasible locations
2010 targets as promulgated by IATA Board:
By end 2010, EF in 44 locations and 76 airports representing more than 80% of global cargoBy end 2010, EF in 5 domestic markets representing 86% of domestic cargoImplement 20 electronic document standards
EF international capability - Need 20 locationsArea 3 (3 locations) Area 2 (17 locations) Area 1 (2 locations)
India and Thailand (under DLA)
China live
Finland liveBelgium and Czech
Republic live one way Austria, Hungary, Malta,
Slovakia and Slovenia started implementation
Ireland Israel, Italy, Portugal, implementation in Q3
Cyprus, Estonia, Romania implementation in Q3/Q4
Kenya (LAP) implementation in Q4
Chile live
Mexico LAP
EF capability - Major Airports for 201076 major airports implemented by end of 2010 is target
At end of 2009 we were at 48 major airports
Including 20 major airports as part of the new country airports that will be implemented by IATA takes us to 68
This means we need to implement at least 8 major additional airports in 2010
Candidates include:DUS; HAM; MUC; STR; SZG; LNZ; FCO; LPA; TFN; GVA; GLA; BHXYYCKIXATL; DFW; LAX; MIA
EF domestic capability - 2010 targetsArea 3 (2 locations) Area 2 (Not applicable) Area 1 (2 locations)
China implementation underway (go live August)
Japan (no value proposition)
US live March
Canada – Quarter 4
IATA e-freight update
IATA e-freight Scorecard as of April 2010:Live in 25 locations
More than 125 airports
Over 200 stakeholders (airlines & freight forwarders)
More than 3000 trade lanes
IATA e-freight International Volumes
Overall market penetration approx 0.54%
IATA e-freight’s Top 10 at April 2010 (international)
IATA e-freight Domestic VolumesSouth Korea Domestic Starts
US Domestic Starts
IATA e-freight’s Top 10 at Apr 2010 (domestic)
Key Catalysts for IATA e-freight
Freight Forwarder adoptionImplementation of e-AWB will help
Ensure there is available and affordable technology – Strategic Partnership Program
Customs support is criticalWCO has publicly endorsed e-freightSingapore and Korea publicly endorsed in Memorandum of Understanding with IATA and local stakeholders with programs to support industry
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Electronic Air Waybill (e-AWB)
What is e-AWB?
The Air Waybill (AWB) is a critical air cargo document that constitutes the contract of carriage between the ‘shipper’ (forwarder) and the ‘carrier’ (airline).
The new Electronic Air Waybill recommended practice (e-AWB RP1670) removes the requirement for a paper Air Waybill, significantly simplifying the air freight supply chain process.
With the e-AWB, there is no longer a need to print, handle or archive the paper AWB
16
Benefits of e-AWB
Reduction in processing cost due to the removal of paper AWB
Greater accuracy of air waybill data
Reduction in cargo handling delays due to missing or illegible paper AWB
Elimination of the requirements to file paper AWB
Real-time access to AWB information for all personnel from all locations
17
Current Status for e-AWB
Developed throughout 2008 and 2009 collaboratively with industry stakeholders, in particular with FIATA
Adopted by the IATA Cargo Services Conferenceas the IATA Recommended Practice 1670
Governments adopted and filed the IATA Recommended Practice 1670
e-AWB Proof of Concepts have been implemented successfully on trade lanes (HKG/AMS/ARN)
18
How does e-AWB work?
The process flow of e-AWB allows two options:
Immediate Cargo Receipt Delivery
Deferred Cargo Receipt Delivery
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1. Shipper sends FWB prior to delivery
2. Shipper presents the freight to the airline
3. Airline, upon delivery, accepts the freight as “ready
for carriage”*
4. Airline sends the FSU/RCS concluding the Cargo Contract
6. Airline uploads the cargo and flies it to destination
5. Airline produces the Cargo Receipt in paper
Step 1 Step 2 Step 3
e-AWB:Process Overview – Immediate Cargo Receipt
* If it deviates from the FWB, the shipment shall be treated according to the exception management procedures previously agreed between the Parties
1. Shipper sends FWB prior to delivery
2. Shipper presents the freight to the airline
3. Airline receives the freight as “freight on hand”*
7. Airline uploads the cargo and flies it to destination
Step 1 Step 2 Step 4Step 3
6. Airline sends the FSU/RCS concluding the Cargo Contract and makes available the
Cargo Receipt
4. Airline produces the Warehouse Receipt** in paper
5. Airline accepts the freight as “ready for carriage”*
e-AWB:Process Overview – Deferred Cargo Receipt
* If it deviates from the FWB, the shipment shall be treated according to the exception management procedures previously agreed between the Parties
** In lieu of a Warehouse Receipt, the Carrier may verify the information on and counter-sign the Shipper's Delivery Note
Where can e-AWB be used?
Can only be implemented on trade lanes between origin and destination countries that have both ratified the same international treaty, either MP4 or MC99 (ICAO web site: http://www.icao.int/icao/en/leb/treaty.htm)
In addition, local Customs authority who ask for the AWB must accept e-AWB or a printout of e-AWB in lieu of paper AWB
The above acceptance exists in least all the locations (countries) where IATA e-freight is already implemented
For additional locations (no IATA e-freight), the above acceptance should be investigated by individual stakeholders prior to implementation
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IATA Adoption of e-AWB
IATA Cargo Committee endorsed targets on the move to 100% e-AWB adoption by 2014
For 2010, IATA has proposed for e-AWB to be adopted between at least one freight forwarder and one airline in at least 8 locations by end of 2010. Targeted locations are: AE, CA, ES, HK, KR, NL, SG, UK
IATA will identify and communicate interim targets from 2011 to 2014 in due course
23
How to implement e-AWB?Step 1: Identify critical technology enhancements to support e-AWB
Step 2: Develop e-AWB Standard Operating Procedure (e-AWB SOP). The SOP provides step-by-step instruction needed to handle e-AWB shipments
Step 3: Sign an e-AWB agreement with your forwarder business partners. Whenever possible this agreement should be signed at corporate level to eliminate the need to have multiple local agreements
24
How to implement e-AWB?Step 4: Provide details of the signed e-AWB agreement to IATA
Step 5: Prepare for e-AWB roll-out. Some key activities to ensure a smooth transition:
Train all personnel who will be involved in the day-to-day handling of e-AWB shipments
Prepare contingency plan to minimize disruption to day-to-day process in case of go-live issues
Step 6: Start your first e-AWB shipment
25
Information on e-AWBAll documents and info to start e-AWB are freely available for download on the IATA corporate web site: www.iata.org/e-awb
The e-AWB Functional Specification, e-AWB Model Agreement, e-AWB Quick Reference Guide and other accompanying documents on the website are your starting point.
Upon request, the IATA Cargo team can also help you with expert advice. Please write to: [email protected]
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e-AWB and IATA e-freightIATA e-freight removes 12 core paper documentsfrom air cargo transportation process (with an additional 8 optional documents)
In locations with e-freight implemented, the paper AWB is used at origin as evidence of contract of carriage (but not transported to destination)
With the e-AWB, full elimination of the paper AWBis now possible for e-freight shipments
IATA targets by end of 2011, the implementation of the e-AWB will be mandatory for all e-freight shipments
27
IATA CASS Update
Snapshot of Activities in Asia-PacCASS Export CASS Import e-freight Secure Freight
SG Completed Completed CompletedMY Completed Completed By 2010ID CompletedTH Completed By 2010PH CompletedVN By 2010
AU Completed Completed CompletedPG CompletedFJ CompletedNC CompletedPF CompletedNZ Completed CompletedVU Completed
JP Completed Completed CompletedKR Completed By 2010 Completed
INLKBD CompletedPK Completed By 2010
IATA CASS Update
IATA CASS Scorecard – Both Global and Asia Pacific
2007 2008 2009Global Operations 72 84 97
SCUs (Million) 17.0 18.0 17.8Settlement (USD Billion) 23.0 28.0 20.0
ASPAC Operations 12 15 17
SCUs (Million) 3.2 3.7 3.6Settlement (USD Billion) 5.8 6.6 4.6
Numbers will pick up in 2010.
IATA CASS Update in Asia-PacificNo change to Regional Focus:
Expanding CASS ActivitiesDelivering System Quality
Coverage Extended in 2009Launch of 2 CASS Export: Vanuatu & PakistanLaunch of 2 CASS Import: Singapore & Australia
Targeted Activities in 2010 Implement CASS in Vietnam by Q3 2010Continue CASS growth in Indonesia, Bangladesh & Pakistan
Thank you