IATA E-FREIGHT REVISES BUSINESS CASE, INCREASES
BENEFITS ACROSS AIR CARGO SUPPLY CHAIN
The 188th IATA Board of Governors meeting concluded in Geneva on December
5th, 2008. The board confirmed the vital importance of IATA e-freight
in the deteriorating economic environment, approving a revised business
case that dramatically increases savings to the air cargo industry.
The supply chain will benefit from annual savings of up to US$4.9
- Up to US$1.7 billion in reduced
document processing costs
- Up to US$1.7 billion in inventory
savings for shippers
- Up to US$1.8 billion in savings due
to increased market share from sea-freight
These figures are based on the industry achieving 100% e-freight,
replacing 16 documents with electronic messages, and organic growth of
freight volumes. Were the industry to achieve 80% e-freight, the supply
chain savings would be US$3.1 billion annually.
Other benefits include:
- Faster shipments: the ability to
send shipment documentation before the cargo itself can reduce the
industry cycle time by an average of 24 hours.
- Greater accuracy: Electronic
document auto population – allowing one time electronic data entry
at point of origin - reduces delays to shipments due to inaccurate
or inconsistent data entry. Electronic documents are also less
likely to be misplaced, so shipments will not be delayed because
of missing documentation.
- Better tracking: Data entered electronically
gives organisations the opportunity to track shipments en route –
allowing for real-time status updates.
- Better for the environment: IATA
e-freight will eliminate more than 7,800 tonnes of paper documents,
the equivalent of 80 Boeing 747 freighters.
The complete business case is in the IATA e-freight Handbook. The
handbook is the comprehensive guide to implementation and is available
free of charge on the IATA e-freight website.
Built by the supply chain, for the supply chain
Facilitated by IATA, the project is an industry-wide initiative
involving carriers, freight forwarders, ground handlers, shippers and
customs authorities. “We are committed to getting everyone involved,”
said Steve Smith, IATA e-freight Project Director. “Our ability to
deliver this kind of industry change is based on developing a product
that works for everyone.”
To date, 31 freight forwarders are involved in IATA e-freight.
Several shippers and freight forwarders are members of the e-freight
Advisory Group (eAG), which sets out project strategy, processes, and
Picking up speed: more locations, more volume and more documents
In one year, the number of IATA e-freight locations has tripled,
from six in 2007 to 18 in 2008. “This is a significant achievement,
particularly given the fact that countries must pass two levels of
assessments – the first of which involves ratification of international
treaties – to be endorsed as ready for IATA e-freight,” added Steve
In 2009 five more locations – Belgium, China, Japan, Malaysia and
Switzerland – will become e-freight live. Belgium, China and Malaysia
will need to first complete LAPs (Local Action Plans that meet the
assessment criteria). Fourteen more airports will also become e-freight
live. Half of these airports will be in the USA. Three more documents –
the Dangerous Goods Shipper’s Declaration, Transfer Manifest and
Shipper’s Letter of Instruction – will be replaced by electronic
messages, bringing the total number of messages to 16. Finally, the
project will focus on adding additional stakeholders in locations
already live – through the use of the handbook.
By the end of 2010, locations that account for 81% of all
international freight will be e-freight capable, paving the way for the
supply chain to realise these savings.
How to get involved
- The IATA e-freight homepage provides up-to-date
information on the e-freight status of countries around the world.
Find out which locations are live and which airlines and freight
forwarders are participating.
- In 2009 IATA e-freight will host a
series of workshops around the world, offering stakeholders the
opportunity to interact with subject matter experts. A list of
workshops will be made available on the website in early 2009.
- To provide feedback or for further
information, please contact us at IATAefirstname.lastname@example.org.
The StB Global Team