Target:
Eliminate the need to produce and transport paper documents for air cargo shipments by moving to an industry-wide, simpler, electronic, paper-free environment
Early adopter implementation by end 2007, full industry implementation by end 2010
Benefits:
Shipper: Expedited movement of goods, improved quality of service
Forwarder: Process efficiency, reduced cost of compliance
Airline: Process efficiency, cost reduction, improved competitiveness of air freight
Customs: Faster, more accurate information for security screening & clearance
Quick Facts:
- Average of 25 documents per shipment at a cost of US$30
- Early adopter implementation (end 2007) will generate savings of US$800 million per year
- Industry savings will be US$1.2 billion per year when fully implemented (2010)
- Paper used in processing shipments every year could fill 39 747-400 or 81 A-300F4-600R freighters
- 20 years ago it took 6.5 days on average to send a shipment internationally, today it still takes 6.0 days - 1 day to fly, 5 days to wait for the paper
- IATA has formed a preliminary Industry Action Group representing air cargo stakeholders made up of British Airways, Cargolux, Emirates, Fedex, Lufthansa Cargo and Singapore Airlines
IATA’s Action Plan:
- Develop governance to effectively represent early adopter forwarders, carriers, shippers, customs, and also ensure effective engagement with key industry bodies.
- Harmonise current industry data and communication standards
- Define user requirements and system functionality to support a potential Cargo Data Exchange (CDX) RFP process
- Identify roadblocks to the elimination of paper, and develop a plan to remove them
- Develop a legal framework to operate a paper free end-to-end process