Simplifying the Business

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Simplifying the Business

• IATA e-freight
• May 5th, 2007

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A little bit of background
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Document intensive industry Shipper to
Forwarder
Freight Forwarder
Shipper
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Document intensive industry Forwarder to Carrier
Consolidation
Carrier
Forwarder
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Document intensive industry Manifest
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Many documents..
Airline
export and import customs declarations
Freight Forwarder

Shipper
transported with every shipment
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Challenging!
In an information intensive industry
e-freight is about migration from PAPER
to DATA !!
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IATA e-freight Vision and Mandate

• VISION Paperless
• No requirement to produce or transport any paper
  documents for any purpose at any time (primary
  and secondary process)
• MANDATE FROM IATA BoG Paper Free
• Environment in which industry does not need to
  transport paper in parallel with the freight, but
  there may be a requirement to produce this paper
  in original, copy or printed e-document form for
  some authority or process.
•  
• IATA e-freight Delivers a paper-free industry
  to reduce paper-work (i.e. cost of processing
  paper, including data quality). IATA e-freight is
  not paperless.

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IATA e-freight is industry wide seamless flow of
data across the air cargo chain
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IATA e-freight strategy 2007
Learn Demonstrate Get started
PILOTS
Drive industry data Readiness
Message Improvement Programme (M.I.P.)
Non-pilots global assessment and engagement
approach
Engage Governments and Industry globally
StB Preferred Partner Programme e-f Vendor
Action Group
Ensure e-freight solutions are available
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IATA e-freight Governance moving forward
e-freight Industry Action Group Pilot
participants KLBASQCXAC, FFI rep Local hero
Forwarder Cargo 2000 Board Chair WCO Ray
McDonagh Chair Project Director e-freight
e-freight Pilots Central Action Group Airline
Project Managers KLBASQCXAC FFI Project
Managers Other supply chain participants by
invitation Chair Head e-freight Implementation
e-freight MIP Action Group 2 airlines from each
region One FFI member Cargo 2000 management
member Chair IATA EDI Improvement Manager
e-freight Vendor Action Group Senior Execs of
e-freight Partner Program Chair e-freight
Technology Stream Leader
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IATA e-freight 2007 Targets

• Pilots
• 5 pilot implementation projects live by end 2007
• Message Improvement Program (MIP)
• 30 airlines 10 forwarder participants by end
  2007
• Non-pilots approach
• Methodology to assess governments and support
  industry (by May 2007)
• Assessment/engagement with prioritized
  governments/countries (list TBD) initiated by end
  2007

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e-freight 2007 High-Level Milestones
Q3 07
Q4 07
Q1 07
Q2 07
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e-freight MIP
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Without MIP Forget it!

• Data quality must improve for e-freight to become
  a reality
• Examples of current performance
• A Cargo 2000 airline conducted an audit of FWB
  performance for Sept 2005
• AWBs issued 46,473
• FWBs received 18,079 (38.9 of total AWBs issued)
• FWBs incorrect 7,084 (39.2 of total FWBs
  received)
• 76.3 of AWBs did not have a correct FWB (ie.
  missing or incorrect)
• Recent samples from 3 system providers showed
  that 5 of FWBs and 9 of FHLs were rejected by
  airline systems (FNAs sent).
• MIP is the e-freight vehicle to improve data
  quality on a global basis
• Airlines and forwarders commit to report on
  penetration and quality, perform root cause
  analysis, and initiate corrective actions

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IATA e-freight MIP Who?

• Airlines to date who have committed to
  participate (20)
• American, Air Canada, Air France, British
  Airways, Cargolux, Cathay Pacific, Copa Airlines,
  Emirates, Etihad Airways, Iberia, Icelandair,
  KLM, Korean, Lufthansa, Northwest, SAS, Singapore
  Air, Swiss, Thai, THY Airlines, United Airlines
• Freight Forwarders to date who have committed
  to participate (8)
• Agility DHL Kuehne Nagel Schenker
• Yusen TNT Hellmann Logistics
• Panalpina
• Airlines currently supplying data.

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e-freight pilots
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2007 Pilots What?
Dec 07
Feb 07
Sep 07
Jun 07 CHECKPOINT
I.
II.
III.
I.
II.
III.
IV.
V
IV.
V
Roll out
Roll out
Proof of
Proof of
Set
-
up
concept
Build
-
up
Set
-
up
concept
Build
-
up
Transition
Go
-
Live
Transition
Go
-
Live

• Pilot Objectives
• Prove we can remove need to transport specific
  documents with freight, on specific pilot
  trade-lanes, based on simple, electronic,
  paper-free process
• Determine and publish e-freight standards for
  operating on specific trade-lanes between pilot
  countries
• Implement e-freight for such documents on
  specific trade-lanes

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Scope of pilots export forwarders to import
customs
Scope
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2007 Pilots 5 Locations
UK
Canada
Netherlands
Hong Kong
Singapore
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2007 Pilots 5 Airlines
UK
Canada
Netherlands
Hong Kong
Singapore
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2007 Pilots 5 Forwarders
Canada
UK
Netherlands
Hong Kong
Singapore
5 Customs GHAs 5 Forwarder Assoc IT
Providers
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IATA e-freight Pilots deliverables for current
phase (proof of concept) by June 07

• Deliverables for the pilot groups
• To-be e-freight processes defined for each
  trade lane
• Scope determined what docs on what trade lanes
  with what participants
• Deliverables for stakeholders individually
  (airlines, forwarders)
• Confirm trade lanes you will participate in
• Provide initial (high level) plan to get to
  readiness by Dec 07

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Beyond pilots
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More locations wish to engage!
Sweden
Canada
UK
Netherlands
USA
Switzerland
Hong Kong
Dubai
Korea
Singapore
Chinese Taipei
Mauritius
New Zealand
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• Ramp-up of e-freight how IATA will facilitate
  e-freight Scalability

• Create and Test e-freight Processes and Standards
• Create 2007 Pilots
• Test Identify and Engage Government and
  Industry Stakeholders for the next wave
  implementations (2008)
• Assess and Promote Industry Preparedness for
  e-freight
• IATA e-freight MIP
• Promote use and acceptance of the Plain Paper AWB
• IATA e-freight StB Preferred Partner Program
• Assess and Promote Government Preparedness for
  e-freight
• Global assessment of government preparedness
• Relationships with International and regional
  Organisations
• Lobby to Promote government preparedness

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For more information visit http//www.iata.org/stb
supportportal/efreight