There are many benefits of implementing the e-AWB for both shippers (typically a freight forwarder) and airlines. The following are just some of the key benefits of the e-AWB that have been identified by industry stakeholders:

• Reduced costs: Elimination of purchase costs for pre-printed paper AWB, reduced AWB printing costs, reduced archiving costs
• Higher productivity: Elimination of repeated data keying, real time access to AWB information, reduction in cargo handling delays due to missing or illegible paper AWB, detection of errors prior to submitting the physical freight, no waiting time for processing paper AWB at airline desk
• Better reliability: No risk of losing documents and reduced number of errors
• Regulatory compliance: Authorized by international treaties regulating air cargo transport; contribution to the advanced reporting requirements
• Paving the way towards e-freight: A first step toward a paper free air cargo, involving less stakeholders
  

The e-freight project aims to take many paper documents out of air cargo and replace it them with the exchange of electronic data and messages. Initiated by IATA, the project became an industry-wide initiative involving carriers, freight forwarders, ground handlers, shippers, customs brokers and Regulators  including customs authorities.

The AWB is the most important transportation document in Air Cargo. The e-AWB initiative is more and more considered as  the first step to realize the e-freight vision. The e-AWB project replaces the paper AWB contract with an electronic contract of carriage between the Shipper (which is very often the Freight Forwarder) and the Carrier.

When the e-freight project started, there was no standard for e-AWB. Therefore up to end of 2012, it is possible for e-freight shipments to “move” with a paper AWB. However from January 2013, e-freight mandates e-AWB, which means that the use of e-AWB becomes a necessary condition for a shipment to be considered e-freight.

e-AWB can be implemented on a broader scale than e-freight: In particular, a traffic route does not have to be an e-freight trade route to be eligible for e-AWB. We refer to the answer to the question “Where can the e-AWB be implemented?” for detailed explanations about the traffic routes where the e-AWB can be implemented. Also some stakeholders do not whish for the time being to remove other paper documents than the paper AWB so they can do e-AWB now and decide to do e-freight later on.

The airline industry target is 15% e-AWB penetration on feasible lanes by the end of 2012.

From 1st January 2013, e-freight will mandate e-AWB. This means that the use of e-AWB will become a necessary condition for a shipment to be considered e-freight.

The vision is to achieve 100% e-AWB on feasible lanes by the end of 2014.

As of beginning of 2012, several airlines in Asia and Middle East have already achieved a penetration of 100% of e-AWB on their local market.

The industry initiative to move away from the paper AWB to e-AWB is endorsed by FIATA (the International Federation of Freight Forwarders Association) who encourages its members to adopt the e-AWB. Also many local freight forwarder associations have clearly and formally expressed their support e.g. Canada, Israel. The communications from these organizations are available under www.iata.org/e-awb

Airline and freight forwarder representatives worked together as part of the e-AWB Advisory Group to define the e-AWB in 2008 and 2009. Their work resulted in the publication of the Recommended Practice 1670 in March 2009.

The e-AWB Agreement has been endorsed by FIATA (the International Federation of Freight Forwarders Association), was adopted by the Cargo Service Conference and approved by several governments around the world including the US Department of Transportation.

There are 2 options to incorporate the e-AWB process into the day-to-day freight operations:

Option1: ‘Immediate Cargo Receipt Delivery’ option

• Step 1: Both parties (Carrier and Shipper) must sign an e-AWB Agreement prior to implementing the e-AWB. This should be done only once, preferably at Corporate Level to ease the administrative burden of having multiple e-AWB Agreements locally)
• Step 2: Shipper sends FWB electronic message to carrier prior to tendering the shipment
• Step 3: Shipper tenders the shipment to carrier prior to flight departure
• Step 4: Carrier accepts shipment in their system as “Ready for Carriage”
• Step 5: Carrier immediately sends FSU/RCS electronic message to shipper, concluding the Cargo Contract 
• Step 6: Carrier provides shipper with Cargo Receipt (paper document) as proof of contract

Option2: ‘Deferred Cargo Receipt Delivery’ option

• Step 1: Both parties (carrier and shipper) must sign an e-AWB Agreement prior to implementing the e-AWB. This should be done only once, if possible, at corporate headquarters level to ease the administrative burden of having multiple e-AWB Agreements locally)
• Step 2: Shipper sends FWB electronic message to carrier prior to tendering the shipment
• Step 3: Shipper tenders the shipment to carrier prior to flight departure
• Step 4: Carrier receives the shipment as “Freight on Hand”
• Step 5: Carrier provides shipper with a “Warehouse Receipt”. For purposes of this option, the Warehouse Receipt will be deemed an interim cargo receipt to be used by the parties until the Carrier can produce the EDI based “Cargo Receipt” described in Step 6
• Step 6: Carrier accepts shipment in their system as “Ready for Carriage”
• Step 7: Carrier immediately sends FSU/RCS electronic message to shipper, concluding the Cargo Contract
• Step 8: Carrier makes the Cargo Receipt (paper evidence of contract) available upon request by the shipper
  

The vision is paperless air waybill for the complete life cycle of the shipment.
 
Note: In the event that a party chooses to use the form of an air waybill as a Warehouse Receipt, any mention or reference to conditions of contract shall be disregarded and considered null and void.

Additionally, it is recommended when using the paper air waybill that the form should include a clear indication on its face that it is a “Warehouse Receipt” only and not an air waybill to avoid confusion

• With a few limited exceptions endorsed by IATA, the e-AWB should only be implemented on trade lanes where origin and destination countries have ratified the same international treaty, The Warsaw Convention as amended by Montreal Protocol 4 (MP4) or Montreal Convention 1999 (MC99). Both of these treaties provide a favorable and secure legal foundation for e-AWB and e-freight.
• Local Customs authority must be willing to accept electronic air waybill or a printout of the electronic air waybill

NOTE: Shippers and carriers are nonetheless reminded that IATA e-freight is a discretionary program, and it is up to shippers and carriers alike, based on their internal legal analysis, to determine how they should ship and document cargo to and from any endorsed IATA e-freight destination. IATA provides recommended tools for accomplishing IATA e-freight transactions such as Cargo-IMP messaging and the e-AWB Agreement, and through its endorsement of particular destinations, confirms that the governments of such destinations will accept the use of these tools at their borders. By ensuring that an endorsed location is a signatory to either MP4 or MC99, IATA can compel the acceptability of IATA efreight tools.

However, such endorsement does not affect in any way the preexisting legal regime with regard to liability or the particular requirements that cargo insurance carriers may have when cargo is transported to and from those destinations. The determination of how liability and insurance issues should be resolved continues to be the responsibility of the carriers and shippers.

Parties are cautioned that the use of electronic means in lieu of a paper air waybill may increase their liability exposure on traffic routes where electronic means are not recognized under international convention and local law.  

Montreal Protocol 4 (MP4) serves to amend the Convention for the Unification of Certain Rules Relating to the International Carriage by Air signed at Warsaw on 12 October 1929 as Amended by the Protocol done at The Hague on 28 September 1955 (the “Warsaw Convention). Thereafter, a need to modernize and consolidate the Warsaw Convention and related instruments was recognized. This culminated in a new convention, the Montreal Convention of 1999 for the Unification of Certain Rules for International Carriage by Air (MC99). The significance of these treaties, as mentioned, is that they provide a favorable and secure legal foundation for IATA e-freight and the e-AWB. There is in fact only one significant technical difference between the two treaties: MP4 requires the consent of the shipper prior to using the e- AWB; this “consent” is provided for in the e-AWB Agreement.

Importantly, carriers and shippers should bear in mind that both origin and destination countries must have ratified the same treaty. That is, both countries must have both ratified MP4 or the both must have ratified MC99. Conversely, if one country has ratified only MP4 the other country has ratified only MC99, its conceivable that neither treaty would apply and the parties run the risk of having their shipments detained indefinitely by government authorities and/or frustrate their ability to assert the liability limitations afforded by the international conventions.

Montreal Protocol No. 4 was entered into force, generally, on 14 June 1998. Montreal Convention 1999 was entered into force, generally, on 4 November 2003.

The country of origin and country of destination must have ratified the same treaty for the limits to apply. For information regarding the status of ratification for each country, please refer to http://www.icao.int/secretariat/legal/Lists/Current%20lists%20of%20parties/AllItems.aspx   

There are 2 ways to implement the e-AWB from technology perspective:

• ‘EDI’ option: This option requires carrier and shipper to use Electronic Data Interchange messages to transmit the information of the Shipment Record (See Section 24) as describe in the e- AWB Agreement
• ‘Web Portal’ option: This option is an alternative to the EDI option. Instead of using the EDI as a mean to exchange electronic messages (Shipment Record information), carrier may provide web-based access for shipper to:
   
• Accept air waybill terms and conditions 
• Enter air waybill data
• View the carrier acceptance of freight as “Ready for Carriage” information
• Store and display the Shipment Record information
• View and print Cargo Receipt
  

Technology requirements for EDI Option:

• Ability to receive FWB messages
• Ability to send FSU/RCS messages
• Electronic archival capability of FWB and FSU/RCS messages (these two messages constitute the Shipment Record)
• Ability to produce (print) the Cargo Receipt on demand

Technology requirements for Web Portal Option:

Carrier must have the following functionalities on web portal to allow freight forwarder to:

• Accept air waybill terms and conditions
• Enter air waybill data
• View the carrier acceptance of cargo as “Ready for Carriage” information
• Store and display the shipment record information
• View and print Cargo Receipt 

Operations requirements:

• A defined step-by-step operational procedure of how to handle e-AWB shipments

Technology requirements for EDI Option:

• Ability to send FWB messages
• Ability to receive FWB/RCS messages
• Electronic archival capability of FWB and FSU/RCS messages (these two messages constitute the Shipment Record).

Alternatively, forwarder without EDI capability may be able to access an online web solution where their airline business partners allow them to do:

• Accept air waybill terms and conditions
• Enter air waybill data
• View the carrier acceptance of cargo as “Ready for Carriage” information
• Store and display the shipment record information
• View and print Cargo Receipt
  
  

Should you want to participate:

Step 1: Go to www.iata.org/e-awb and download and read the following documents:

• e-AWB Quick Reference Guide
• CSC Recommended Practice 1670
• e-AWB Functional Specification

Step 2: Identify the critical technology enhancements needed to support the e-AWB implementation in your organization. IATA has created technical readiness assessments to help you identify any gaps that may exist. These assessments can be found at: www.iata.org/e-awb

Step 3: Develop and test your e-AWB Standard Operating Procedure (SOP). The e-AWB SOP should describe the step-by-step process required to handle e-AWB shipments

Step 4: Sign an e-AWB Agreement with your technically capable forwarders and shippers (paper or on-line). Whenever possible the agreement should be signed at the corporate headquarter level to limit the administrative burden of having multiple agreements locally. The model agreement for the data interchange (Recommended Practice 1670) can be found at: www.iata.org/e-awb

Additionally, as an airline implementing the e-AWB, you are required to provide information of signed e-AWB Agreement to IATA.This information will allow IATA to measure e-AWB adoption globally and by stakeholders

Step 5: Prepare e-AWB roll-out. The following are some suggested key activities to ensure a smooth transition:

• Train all personnel who will be involved in the day-to-day handling of e-AWB shipments
• Prepare contingency planning to minimize disruption to your day-to-day operations in case of go-live issues

Step 6: Start with your first e-AWB shipment

For more information please visit the IATA public website for the e-AWB: www.iata.org/e-awb

Or
Contact the IATA Cargo team at cargo@iata.org

Step 1: Go to www.iata.org/e-awb and download and read the following documents:

• e-AWB Quick Reference Guide for Forwarders
• CSC Recommended Practice 1670
• E-AWB Functional Specification

Step 2: Identify the critical technology enhancements needed to support e-AWB implementation in your organization. IATA has created technical readiness assessments to help you identify any gaps that may exist. These assessments can be found at: www.iata.org/e-awb

Step 3: Develop and test your e-AWB Standard Operating Procedure (SOP). The e-AWB SOP should described the step-by-step process required to handle e-AWB shipments

Step 4: Sign e-AWB Agreement with your airlines (paper or on-line). Whenever possible the agreement should be signed at the corporate headquarter level to limit the administrative burden of having multiple agreements locally. The model agreement for the data interchange (Recommended Practice 1670) can be found at: www.iata.org/e-awb 

Additionally, as an airline implementing e-AWB, you are required to provide information of signed e-AWB Agreement to IATA. This information will allow IATA to measure e-AWB adoption at globally and by stakeholders

Step 5: Prepare e-AWB roll-out. The following are some suggested key activities to ensure a smooth transition:

• Train all personnel who will be involved in the day-to-day handling of e-AWB shipments
• Prepare contingency planning to minimize disruption to your day-to-day operations in case of go-live issues

Step 6: Start with your first e-AWB shipment

In general, you don’t have to contact your local Customs authority to inform them of your intention, provided that the origin and destination countries are live with IATA e-freight (see Section 16). In the case that they are non e-freight countries, the legal environment of the origin and destination countries satisfies the minimum legal requirements of the e-AWB, which means they must:

• Have ratified the same international treaty, Montreal Protocol 4 (MP4) and/or Montreal Convention 1999 (MC99)
• Local Customs authority must be willing to accept electronic air waybill or a printout of the electronic air waybill IATA recommends that the airlines inform the local Customs authority at origin and destination of the upcoming e-AWB implementation.

Yes, provided that you have access to an online web portal provided by your airline business partners that allow you to:

• Accept air waybill terms and conditions
• Enter air waybill data 
•  View the carrier acceptance of cargo as “Ready for Carriage” information
• Store and display the shipment record information
• View and print Cargo Receipt
  

A comprehensive list of airlines who is ready for e-AWB implementation with the origin and destination countries as well as implementation options can be found on the IATA web site: www.iata.org/e-awb 

Yes, the model agreement for e-AWB (Recommended Practice 1670) was published in 2010. This is a standard model agreement that should be signed by carrier and shipper prior to the implementation of the e-AWB.

Recommended Practice 1670 can be found at: www.iata.org/e-awb  

Further information about the IATA e-AWB can be found at: www.iata.org/e-awb

 Contact IATA Cargo team at: cargo@iata.org 

You can contact the IATA Cargo team at cargo@iata.org  

As this is an industry wide program, the involvement of all stakeholders and parties is crucial to IATA. Therefore information will be made available for the entire industry. Update on the progress of the e-AWB will be distributed by the IATA Cargo team and posted on our website: www.iata.org/e-awb

The letter of credit for e-AWB has not been investigated in detail, but the following is a possible solution:

• e-AWB is feasible for letter of credit shipments
• e-AWB will have the bank as consignee
• e-AWB will have a notify party
• The airline will give a copy of the AWB printed from electronic record
• The notify party will go to the back to get an endorsement letter from the bank
• The notify party with the endorsement letter from the bank will come and pick up the cargo