e-freight

fundamentals

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 e-freight Vision
Shipper
Origin Carrier Destination
Forwarder Origin
GHA Consignee
GHA
Destination
Forwarder

Export
Customs/
Import
Regulators
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

Safe, Secure, Reliable, Efficient

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 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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 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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 e-freight fundamentals (3/3)

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

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 Scope: e-freight documents
Shippers
Carrier
Origin
Freight Forwarders
Origin Destination
Export
GHA GHA
Customs
Import
1. Invoice
2. Packing List Customs
3. Certificate of Origin Destination
4. Letter of Instruction
5. Dangerous Goods Declaration 12. Flight Manifest Freight Forwarders
7. Master Air Waybill
6.CITES certificate* 13. Transfer Manifest
8. House Waybill
14. Export Cargo Declaration
9. House Manifest
15. Import Cargo Declaration
10. Export Goods Declaration
16. Transit Declaration*
11. Customs Release Export
17. Security Declaration*
18. Freight Book List*
19. Import Goods Declaration
20. Customs Release Import
Consignees

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 e-freight: Why do it?

Cost:
Eliminate paper handling, transporting and processing cost
(eliminates data re-capture)
Time:
Reduced freight wait time
Visibility:
Quality electronic messaging for tracking status of freight
Quality:
Unified Quality Management Standards
Sustainability:
Contribute to environment by reducing paper consumption

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 e-freight Status end Oct 2012

42 437
Locations LIVE Airports LIVE
Overall e-freight
Monthly EF Volume (last 12 months) penetration
70,000 12.00% reached 14% on
60,000 10.00% trade lanes that
50,000
40,000
8.00%
were live at the end
6.00%
30,000 of 2010.
4.00%
20,000
10,000 2.00%
0 0.00%
Graphic figures
are based on
Total EF Consignment EAP
October 2012 data.
EAW EF Penetration between live partners

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 Cargo-XML Standards for e-freight
IATA published the Cargo-XML Manual and
Toolkit (1st Edition) containing the following 14
Cargo-XML Messages:

Transport Messages Acronym Commercial Messages Acronym

XML Waybill XFWB XML Shippers Declaration for Dangerous
XSDG
Goods
XML House Waybill XFZB
XML Invoice XINV
XML House Manifest XFHL
XML Packing List XPCL
XML Flight Manifest XFFM
XML Certificate of Origin XCOO
XML Freight Booked List XFBL
XML Shippers Letter of Instruction XSLI
XML Status Message XFSU
XML Response Message XFNM
Note: IATA also developed CITES permit and Transit Declaration
XML Booking Message XFFR in conjunction with respective organizations i.e. Convention on
International Trade in Endangered Species (CITES) and World
XML Custom Status Notification XCSN Customs Organization (WCO)

For further details about Cargo-XML standards please visit www.iata.org/cxmltf

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 e-freight development life cycle
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Project Kick -Off

Pilots in six
locations (1)
First e-FOPs (2)

Develop missing
Drive Roadmap towards
standards
100% paperless
GACAG
Build the route network Roadmap
(location Capability)

(1) Canada, Hong Kong, Netherlands, Singapore, Sweden, United Kingdom

(2) e-freight Operational Procedures

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 In 2012 GACAG adopted a
three-pillar Roadmap to achieve
paperless transportation

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 Three Pillars towards paperless
Shipper
Origin Carrier Destination
Forwarder Origin
GHA Consignee
GHA
Destination
Forwarder
Pillar III
Pillar II
Export Import
Customs/ Customs/
Pillar I Regulators
Regulators

Pillar I Establish Route Pillar II Implement Paperless Pillar III Implement

Network (enabler)
Engage regulators to create
network where customs are
electronic and regulatory
environment supports paperless
airport-to-airport Paperless door-to-door
Digitize core transport docs: Air Waybill, Digitize core commercial docs
House Manifest, Consignment Security Dec. (invoice/Packing list/HAWB) and
(CSD), Flight Manifest Special cargo docs
Goal: Paperless acceptance and delivery of Goal: Removal of document
freight, airport to airport. pouches, shipper to consignee

*Air Waybill, House Manifest, Flight Manifest, (Consignment Security Declaration is anticipated)

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 What is required for
e-freight to work?

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 I Global e-freight II Removal
Pillar I of Core III Removal of pouch
Network Transport Docs

Airline
Electronic Customs
Shipper environment
Key Handler Forwarder
Stake- Customs Ability to make customs declarations Airline
holders Forwarder
and electronically (export and import)
Regulators
No requirement to show original paper
documents for invoice and packing lists during
Pilots in two BRIC
2013
locations
or post transit
e-AWB 20% penetration
Industry plan to digitize
Target commercial docs
45% trade lane coverage Electronic docs (invoice/packing list) must be
accepted in electronic format, or printed copy

2015 Goal Use of e-pouch for

80% world trade lanes 100% paperless *
general cargo

Lead IATA IATA FIATA & GSF

*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration

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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)

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 e-freight trade & transport
messages should feed
Customs messages, reducing
manual entries and
increasing Quality

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al e-freight Globalofe-freight
II I Removal Core II Removal
III Removal of Core
of pouch III Removal of pouch
twork Network
Transport Docs
Pillar IITransport Docs

Airline Airline
Electronic
Shipper communication
Shipper
Key Handler
between
Handler
Forwarder FF-Airline-GHA Forwarder
s Stake- Customs Airline Airline
holders Forwarder Forwarder
and
Ability to communicate FWB and FHL information
rs Regulators between FF-Airline-GHA systems (or capture
information on airline web portal)
two BRIC Pilots in two BRIC e-AWB agreements signed and implemented (currently
2013 Industry optional
plan to digitize Industry
as ofplan
Jan to digitize
ations e-AWB 20%locations
penetration e-AWB 20%for e-freight but mandatory
penetration 2013)
Target commercial
Procedures commercialtodocs
docs defined between FF-GHA-Airline accept
ane coverage 45% trade lane coverage
freight at acceptance counter (origin) and for freight
delivery (destination) without original paper docs (may
require use of a shippers delivery note or warehouse
2015 Goal Use ofreceipt)
e-pouch for Use of e-pouch for
d trade lanes 80%
100%world trade* lanes
paperless 100% paperless *
general cargo general cargo

ATA Lead IATA

IATA IATA
FIATA & GSF FIATA & GSF
*Air waybill, House Manifest, Flight Manifest, Consignment Security Declaration

House Manifest, Flight*Air Waybill,

Manifest, House Manifest,
Consignment Flight Manifest, Consignment Security Declaration
Security Declaration
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 Flight Manifest

Cargo Declaration

Master Air Waybill Air Waybill

Transportation
House Manifest

Customs
House Waybill House Waybill

Trade
Invoice Invoice Invoice

Packing List Packing List Packing List Goods Declaration

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of Core Globalof
III IRemoval e-freight
pouch II Removal
Pillar III of Core III Removal of pouch
III Removal of the pouch
Docs Network Transport Docs

rline Airline
Shipper Electronic communication
Shipper
Handler
Key
Stake-
Forwarder between origin and destination
Forwarder
Customs Airline Airline
arder
holders and forwarder/consignee
Forwarder
Regulators
Ability of origin forwarder to communicate key
Pilots in two BRIC documents to destination forwarder, broker and
2013 Industry plan to digitize shipper electronically (houseIndustry
air waybill,plan to digitize
invoice,
netration locations e-AWB 20% penetration
packing list)
Target commercial docs commercial docs
45% trade lane coverage
Ability to archive documents electronically (e-
Archiving)
Once the above are in place, the forwarder does not
Use of e-pouch for need to provide these documents to the
Use airline forfor
of e-pouch
2015
less * Goal 80% world trade lanes 100% paperless *
carriage to destination (Eliminationgeneral
of the document
general cargo cargo
pouch for general cargo documents, reduced pouch
for other cargo that needs special cargo docs in the
pouch)
Lead FIATA IATA
& GSF IATA FIATA & GSF

*Air Waybill, House Manifest, Flight Manifest, Consignment Security Declaration

gnment Security Declaration
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 Appendix

e-freight: end-to-end data flow for General Cargo

e-freight: Principles
e-freight: find out more

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 e-freight end-to-end data flow
for General Cargo
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

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e-freight end-to-end data flow for General Cargo
Invoice
Packing List

Invoice Invoice
Packing List Packing List
Air Waybill
House Manifest
Shippers House Waybill

Cargo Acceptance
Consignees

Origin
Freight Forwarders Carrier
Export Goods Decl. /
Customs Release Export
Air Waybill
House Manifest

Import Cargo Decl. /

Export Cargo Decl. / Flight Manifest Customs Release Import
Air Waybill
Destination
Customs Release Export
House Manifest Freight Forwarders

Export Customs
Import Goods Decl. /
Freight flow Customs Release Import
Information flow EDI
Information flow EDI or Scan Import Customs

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 e-freight: 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 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)

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 e-freight: 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

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 e-freight: Find out more
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

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