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The air cargo industry still relies on paper-based processes to support the movement of freight. The average air freight shipment generates up to 30 paper documents – impacting costs and lengthening transport times. Replacing paper with electronic messages greatly benefits the competitiveness of air freight.

IATA e-freight involves carriers, freight forwarders, ground handlers, shippers, customs brokers and customs authorities in both design and implementation.

Concerns about IATA e-freight model

Some supply chain participants such as FIATA have expressed concerns about the e-freight initiative, saying that freight forwarders are not sufficiently involved and IATA is trying to force cargo into models set up for passenger air transport.

IATA welcomes the opportunity to address these concerns and work together with the air cargo supply chain to realize US$4.9 billion in annual potential savings.

Freight forwarder involvement essential

Almost 200 companies, including 173 freight forwarders, work with IATA in 23 countries around the world. “We are committed to getting everyone involved,” said Steve Smith, IATA e-freight Project Director. “Our ability to deliver this kind of change is based on developing a product that works for everyone.”

Freight forwarders are involved at all levels of the project, from global governance to local implementation. Recently, IATA and FIATA worked closely on the model agreement for electronic data interchange (EDI ) and the implementation of the electronic Air Waybill (e-AWB ). At country level, the local forwarder association and at least one multinational and one local freight forwarder are always involved. They play a critical role in determining the readiness of the country to implement e-freight, and provide input into local operating procedures.

Receiving feedback on an ongoing basis from the freight forwarding community has been key in strengthening the e-freight product. For example, one of the main concerns raised by freight forwarders last year was the need for the e-AWB, which is now complete.

Can IATA do more to involve freight forwarders?

“Of course,” says Smith. “It’s in our interest to work hand in hand with forwarders in implementing e-freight, and IATA welcomes ideas from the community on how they can get more involved. There are currently 30,000 e-freight shipments per month compared to less than 500 this time last year. This reflects the value and interest in e-freight by the cargo community”.

A solution that works for cargo

IATA is not new to the cargo business. The association’s US$310 billion cargo settlement system is the backbone of the industry. IATA e-freight is a project developed by cargo experts for the cargo supply chain.

“Cargo cannot walk or talk,” says Aleks Popovich, IATA’s interim head of Cargo. “The e-freight product therefore has to operate on a fundamentally different premise than our passenger initiatives. While there are surely lessons to be learned from the e-ticketing experience, the business case for paper-free air cargo was independently constructed, by the supply chain, for the supply chain.”

To find out about how you can benefit from IATA e-freight, visit www.iata.org/e-freight or e-mail the project team at IATAe-freight@iata.org.

• IATA e-freight operational news (pdf) 
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