Fact Sheet: IATA e-freight

Definition:

• IATA e-freight is an industry-wide programme that aims to reduce the use of paper documents in the airfreight supply chain by moving to a simpler, paper free, electronic environment. It involves among others: airlines, shippers, freight forwarders, ground handlers, and customs administrations.

Target:

• 14 e-freight live locations by end 2008.
• Full industry implementation by end 2010, where feasible.

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

Status:

• An industry action group including six top global cargo carriers, the World Customs Organization (WCO), and Freight Forward International was established in 2005 
• The project is aligned with WCO’s and UN’s global e-customs initiatives 
• E-freight business process standards, processes, and documents developed
• Seven live e-freight locations: Canada, Hong Kong, Netherlands, Singapore, South Korea, Sweden and the UK 
• 12 additional locations have launched e-freight implementation: Australia, Denmark, Dubai, France, Germany, Mauritius, Luxembourg, New Zealand, Norway, Spain and the USA
•  IATA has launched an e-freight Message Improvement Programme, to improve data quality and penetration of electronic messages 
• A commercial vendor community has been established to support the e-freight vision, pilots, and e-messaging quality measurement.

Savings:

• US$1.2 billion per year when fully implemented

Quick Facts:

• Up to 38 paper documents per shipment at a cost of US$30 each will be eliminated
• 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

Updated: August 2008