Steve Smith Director Cargo Supply Chain Management

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1 IATA e-freight project status Steve Smith Director Cargo Supply Chain Management

2 Contents 1. Introduction: Vision and Board Mandate 2. Current Performance progress to increasing e-freight capability: Increasing ggeographic g capability y( (locations and airports) Defining new document standards 4. Growing e-freight volumes 6

3 1. Introduction 7

4 EF 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 cargo By end 2010, EF in 5 domestic markets representing 86% of domestic cargo Deliver 20 electronic document standards 8

5 2. Current Progress 9

6 IATA e-freight Implementation SCORECARD >> As of December 20, IATA e-freight was live in 24 locations and more than 125 airports. Over 200 live Stakeholders (airlines and freight forwarders) can now use e-freight on more than 3000 trade lanes. 10

7 IATA e-freight Live Countries as of February 20 >> Iceland Sweden Norway Canada UK Denmark Germany Luxembourg Netherlands Switzerland USA (JFK/ORD) France Spain Egypt Dubai Chinese Taipei South Korea Japan Hong Kong Malaysia Singapore Mauritius Australia New Zealand 11

8 IATA e-freight Implementation SCORECARD >> Airlines participating: Air Canada Iberia Air France Icelandair Air Mauritius Japan Airlines All Nippon Airlines KLM American Airlines Korean Air Cargo Asiana Lufthansa British Airways Malaysia Airlines Cargolux Airlines Martinair Cathay Pacific Nippon Cargo Airlines China Eastern Airlines Qantas Egyptair Swiss World Cargo Emirates SAS Eva Air Singapore Airlines United Airlines 12

9 IATA e-freight International volumes >> Overall market penetration approx 0.4% 13

10 IATA e-freight Domestic volumes >> South Korea Domestic Starts 14

11 3. Increasing EF capability 15

12 EF international capability 2010 targets Area 3 (3 locations) Area 2 (17 locations) Area 1 (2 locations) India and Thailand (under DLA) China under implementation Belgium, Finland (under implementation both live one way) Austria, Czech Republic, Hungary, Malta, Slovakia and Slovenia (start implementation in Feb) Ireland (DLA), Israel, Italy, Portugal, Turkey (LAP) implementation in Q2 Cyprus, Estonia, Romania (LAP) implementation in Q3 Kenya (LAP) implementation in Q4 Chile under implementation Mexico LAP due to complete in May

13 EF domestic capability 2010 targets Asia (2 locations) China Quarter - implementation underway Japan Quarter 4 Americas (2 locations) US implementation underway Canada Quarter 4 17

14 EF capability Major Airports for major airports implemented by end of 2010 is target This means we need to implement at least 8 major additional airports in current live locations by end of 2010 Candidates include: BSL/DUS/GVA/HAM/LYS/MUC YYC KIX ATL/DFW/LAX/MIA 18

15 EF electronic documents 2010 targets Deliverables for 2010: 4 new message standards: Steps taken: CITES Certificate certificate for endangered species Transit Declaration Security Declaration Freight Book List Define standards using Task Force concept Vote on standards through Cargo Services Conference Prove the standards in proof of concept Implement the standards 19

16 4. Growing penetration (EF volumes) 20

17 Growing Penetration - Approach for 2010 Current performance is 0.4% market penetration In parallel to increasing e-freight capable locations we will continue to drive volume This will be achieved through: Implementation of 20 new locations Implementation of 8 new major airports Targeting airlines to ensure they adopt e-freight at their major airports Targeting top forwarders (volumes) through the airlines to adopt e- freight Working with the top 20 multi-national freight forwarders to adopt e- freight 21

18 Inhibitors to EF growth: Action Plan Participant feedback FF Carrier Progress issue issue Need e-awb to achieve benefits Yes Yes Now have final sign off from US DOT Not satisfied with EDI interface with airline or ground handler Airlines and forwarders targeted to implement e- AWB Yes No IATA has re-confirmed the process as documented in the Handbook Quality of forwarder data (FWB/FHL) No Yes Data quality has improved significantly on e-freight trade The issue seemed to be with one airline s system Not enough airlines doing EF in live locations Not confident customs are fully supportive Yes No Many live e-freight airlines have committed to implement 90% of the available e-freight locations by end 2010 Yes No IATA will identify which specific customs authorities that do not appear to be fully supportive WCO and Customs attending Symposium Need more valid transit points No Yes IATA campaign completed with now more than 400 valid transit points 22

19 e-freight improves: EDI Message Quality 100% 98% 99% Dec. 20 international EF shipments only, 90% 90% measured by MIP on EF mandatory fields. 80% 78% 70% 60% 57% Total Penetration (FWB+FHL) 50% 40% FHL Quality MIP Quality for FWBs has 30% 25% doubled over 12 months 20% thanks to drop in duplicates FWB Quality 10% 0% Dec- 08 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 2323

20 For more information, visit the Cargo website 24

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