2 Chairman’s Opening Remarks Felix Keck, Managing Director,TRAXON Europe
3 Welcome Address Nick Rhodes, Director Cargo, Cathay Pacific Airways LimitedJackson Chan, e-AWB Services Manager e-Freight, Cathay Pacific Airways Limited
4 IATA World Cargo Symposium e-AWB VisionIATA World Cargo SymposiumNick Rhodes – Director CargoJackson Chan – Manager e-Freight09 Mar 2011
5 AgendaIntroductionCX EDI AgreementCX e-AWBCX e-AWB VisionQ & A
6 e-AWB Timelines Feb10 Mar Apr May Jul Sep Oct Nov Dec Jan11 Implementation Strategy approved by S/CBriefing sessions to Forwarder’s ManagementStart trail runConclude EDI AgreementHKG e-AWBCut overFeb10MarAprMayJulSepOctNovDecJan11HAFFA + key customers pre-alerted. Notice & briefing invitation issuedTechnical and operation training to Forwarder’s OPS TeamStart Pilot RunAll HKG Forwarders are ready
7 Why 100% e-AWB in HKG One International Airport Strong Home-Based CarrierClose-unit Cargo CommunityCo-operative Government and CustomsStrong IT Support – GLSHK“Can-Do” Hong Kong SpiritProject Champion
10 What are differences? IATA Model Agreement CX Agreement Difference? Master AgreementBasically sameAnnex A –Technical AnnexAnnex B- Conditions of Contracts for contracts concluded by electronic meansSameAnnex C – Recommended practice 1670NilAnnex D – Terms for initiating and concluding cargo contracts in respect of Warsaw CarriageCX only – for non MC99 ** destinationsAnnex E - Conditions of Contracts for contracts concluded by paper meansAnnex F – Airport ScheduleCX only – adopt e-AWB by airport* *TPE/KHH/BKK/HKT/CMB/KTM/DPS/JKT/SUB/PNH/HAN/SGN/CEB/MNL/DAC/MOW
12 e-AWB Scope of Document ShippersOrigin-DestinationCarrierOriginFreight ForwardersImport Goods DeclarationCustoms Release ImportExportCustomsImportCustomsInvoicePacking ListCertificate of OriginLetter of InstructionDangerous Goods DeclarationDestinationFreight ForwardersMaster Air WaybillHouse WaybillHouse ManifestExport Goods DeclarationCustoms Release ExportFlight ManifestTransfer ManifestExport Cargo DeclarationImport Cargo DeclarationThe remaining documents are not in scope, as they are not currently supported by international standards (not even on paper, as they are local documents). Note: Four more documents were added in year 201017.Flight Book List, 18.Security Declaration, 19.Transit Declaration and 20.CITES Certificatee-AWB only covers Master Air Waybill and House Manifest out of 20 Documents in this diagramConsignees
13 Objectives of e-AWBRemoval of paper AWB & replace by electronic AWB data between Freight Forwarder and Airline.Replacing paper contract by electronic contractEstablish first mandatory step for e-Freight
14 Design PrinciplesOne standard process between Freight Forwarder and Airline.All cargo types.All destinations, MC99 or non-MC99 Countries.
15 How to implement it? Options: To sign an Agreement for EDI with Forwarder (Global agreement with Annex F for each individual location)To exchange electronic messages via CDMP or direct host-to- host connection. CX IT Provider is GLSHK (Ezycargo/Ezyfreight)* Forwarder send FWB/FHL to Airline and receive FNA/RCS from AirlineOptions:1. Host to Host connection(Forwarder’s own system, Local IT Provider, Global IT Gateway)2. Ezycargo/Ezyfreight
16 Design Approach One standard procedure to Freight Forwarder – No AWB Paper for all destinations ex-HKGFreight Forwarder has to send electronic Air Waybill and House Data to CX e-Freight (ezyfreight) System.Other required documents can be manually uploaded to electronic airline pouchCX will accept the AWB within 30 mins and inform Ready For Carriage with EDI message (RCS) or reject with error message (FNA)CX will print AWB and House Manifest on behalf of forwarder based on individual destination requirement
17 AWB Printing Based on Destination Inbound Customs ClearanceNeutral AWBLaser AWBe-Freight(4 copies)(Print 1 A4 paper copy)(No paper AWB onboard)Local Customs acceptPEK / CTU / CKG / FOC / HGH / KMG / NKG / NGB / TAO / PVG / WUH / XMN / CAN / CEB / HKT / PNH / JKT / SUB / KTM / DEL / BOM / MAA / RUH / JED / MOW / CMB/ BKK / DPS / MNL / HAN / SGN / DAC/ DXB / KIX / PNHJNB / CSX / PUS / FUK / NGO / SPK / ADL / CNS / PER / BRU /MXP / ROM / ARN / BAH / YYZ / LAX / SFO / IAH / ATL / DFW / MIA / SYX / PEN / BLR / KHI / BKI / HND / SDJ /OKAAKL / AMS / HKG / KUL / LHR / ICN / SIN / SYD / YVR / NRT / MEL / BNE/ FRA / CDG / MAN / JFK / ORD/ PER/ KHH/ TPENote: Master Waybill will be printed in either Neutral or Laser A4House Manifest will be printed in Laser A4Neutral AWB will be printed for truck and Interline shipmentsHopefully in near future, AWB will be printed by destination only when required.
18 e-AWB Process – Overview Freight ForwardersService ProvidersAirlinesERPWebReceive InformationFWB/FHLPrepare Consol(system starts data validation)Receive Freight(warehouse receipt)Deliver FreightFreight on HandFSU/FOH(system starts data validation)Validate Information(data and scan)e-Pouch(documents for airline acceptance:license, declaration letter etc)Scan Documents(system validation)Resolve Issues(with forwarder if any)FNA(with airline if any)Freight AcceptanceFSU/RCSPrint Cargo Receipt(if need be)(produce cargo receipt)Deliver Pouch(to airline if any)Fly Pouch(to destination if any)
20 Difference between e-AWB and e-Freight To remove paper Air Waybill and replaced by electronic message (FWB).To remove all physical papers required for air transport, and convert them to electronic messages.Examples:Air Waybill, House Manifest, House AWB,Invoice, Packing List, Certificate of Origin, etc.Can implement on non-IATA declarede-freight stations.Only implement on IATA declared e-Freight stations.No IATA Cargo IMP codeNeed to input IATA Cargo IMP code: EAW or EAPThe whole chain involves:Origin Freight Forwarder Origin AirlineShipper Origin Freight Forwarder Origin Airline Origin GHA Origin Customs Destination Customs Destination GHA Destination Airline Destination Freight Forwarder ConsigneeCommon Practice for e-AWB & e-Freight :Documents which can’t be converted to electronic data can be sent to Airline through Ezycargo as e-Pouch.
21 Latest StatusCX/KA have successfully cutover 100% e-AWB in HKG as planned on 01Jan11e-AWB have been shipped to almost all CX/KA destinations and 100+ offline stationsAll EDI Agreements signed2/3 of HKG forwarders are connected by host-to-host
23 e-AWB VisionMove AWB document printing from Forwarder to Airline origin stationMove AWB document printing from origin to destination, print only by exceptionImplement 100% e-AWB for all CX/KA online stations by end 2012Remove Forwarder Pouch by implementing e-Freight
24 Inbound Customs Clearance e-AWB Vision (cont..)Inbound Customs Clearancee-Freight(No paper AWB onboard)Local Customs acceptAKL / AMS / HKG / KUL / LHR / ICN / SIN / SYD / YVR / NRT / MEL / BNE/ FRA / CDG / MAN / JFK / ORD/ PER/ KHH/ TPE PEK / CTU / CKG / FOC / HGH / KMG / NKG / NGB / TAO / PVG / WUH / XMN / CAN / CEB / HKT / PNH / JKT / SUB / KTM / DEL / BOM / MAA / RUH / JED / MOW / CMB/ BKK / DPS / MNL / HAN / SGN / DAC/ DXB / KIX / PNH JNB / CSX / PUS / FUK / NGO / SPK / ADL / CNS / PER / BRU /MXP / ROM / ARN / BAH / YYZ / LAX / SFO / IAH / ATL / DFW / MIA / SYX / PEN / BLR / KHI / BKI / HND / SDJ /OKAAll CX stations are e-freight enabled station
27 Keynote: The Iberia e-AWB Experience In Madrid Angel Cabeza Rivas, Head of Network & Product Development, Iberia Cargo
28 IBERIA CARGO / Head of Network & Product Development IBERIA e-AWB VISIONAngel CabezaIBERIA CARGO / Head of Network & Product DevelopmentIATA World Cargo Symposium, Istanbul, March 9th, 2011
29 AGENDA1. IB vision on e-AWB2. The solution3. The Status4. What's next
30 The AWB is the common document for all shipments… IBERIA e-AWB VISIONThe AWB is the common document for all shipments…Let´s Make it HISTORY !eFreightBenefits &ShipmentseAWBNowNumber of Documents & Complexity
31 IBERIA eAWB KEY SUCCESS ELEMENTS THE SOLUTIONIBERIA eAWB KEY SUCCESS ELEMENTSSpanish Customs SupportIATA RP1670 full endorsment asIB eAWB standard AgreementeBusiness HelpDesk: eAWB & eFreightare MAJOR changes for all participantsIT Systems readiness: iberia-cargo.com& TRAXON GLOBAL CCSForwarders & IBERIA Top Management willingness to embracethis initiative and get eAWB benefits in early stages
32 IBERIA e-FREIGHT & e-AWB STATUS IBERIA as part of the IATA eAWB Working Groupsupport the IATA RP 1670, and takes it as theStandard IB eAWB AgreementMore than 10 with Global & Local Forwardersfrom Spain, Colombia, Germanyhave already signed with IB eAWB AgreementOther 2 Global and 8 LocalForwarders to join during 2011
33 Over 2.000 eFREIGHT (eAWB) shipments each month and growing IBERIA e-FREIGHT & e-AWB STATUSOver eFREIGHT (eAWB) shipments each month and growinge-AWB CAGR : +65%% eAWB by originMAD: %SPAIN: %NETWORK: 5%
34 IBERIA 5th Airline in the World & 1st European Airline IBERIA e-FREIGHT & e-AWB STATUSIATA MIP, Dec 2010IBERIA 5th Airline in the World & 1st European Airline
35 Everything is in place now to make WORLDWIDE WHATS NEXT?Everything is in place now to make WORLDWIDEthe e-AWB iniciative a REALITY.IT Systems are ready.We All (Shippers, Forwarders & Carriers…) are willing to start!ALL WE NEED IS A FIRMLY SUPPORT FROM INTERNATIONAL CUSTOMSLegal framework is favourable with MP4/MC99, and the eAWB Agreement defined
36 Keynote: The Emirates e-AWB Experience in Dubai Niranjan Navaratnarajah, Manager Cargo Systems and E-Freight, Emirates SkyCargo
37 “Moving Toward 100% e-AWB" By Niranjan Navaratnarajah Manager cargo Systems & E-Freight
38 Remember the Benefits. Reduction in processing cost Greater accuracy Reduction in cargo handling delaysElimination of the requirements to file and store paper AWBReal-time access to AWB information when required and not from stores
39 How did we do it. Door to Door Campaign with Global Account Customers Campaign Locally with trusted customersEducate and explain the e-AWB concept to Staff and Customers.Be creative and offer differential Service offerings.Simplify it, e-AWB and e-Freight, Separate but connected.
40 How did we do it.Explained that the e-AWB agreement is simply replacing the Condition of Contract on the AWB.Contrary to opinion, the e-AWB agreement protects the interests of Customers.Have an open dialog with Customs, Airline and Agent on a feasible solution to achieve e-AWB in the local market.DXB customs don’t want the MAWB
41 What are the challenges? Global Forwarders are cautious to accept and adapt e-AWB even though their IT systems are e-AWB capable already.Forwarder local offices hesitant to adopt e-AWB, what's in it for us?Countries which have ratified the MP4/MC99 treaties where customs are still demanding original AWB documentation.
42 What are the challenges? Changing the mind set among customers to accept electronic data (EDI) instead of paper documents.Numerous legacy IT systems in place.Customs IT landscapes are very diversified.
43 Keeping our Targets in View. 100% e-AWB by end 201470% e-AWB by end 201330% e-AWB by end 201210% e-AWB by end 2011
45 Keynote: How to Roll-Out Successfully e-AWB? Céline Lavinay-Hourcade, Manager, Cargo Industry Management, IATA
46 Objectives of e-AWB project Replace the paper Air Waybills by the electronic version. No more paper AWB tendered to airlines!Provide a win-win-win scenario for airlines, freight forwarders and ground handlers by lowering costs, increasing data accuracy and improving customer experience
47 Key milestones for the Industry 2010: standard approved (RP1670) by the Industry and piloted by 9 airlines in 8 countries2011: 6% e-AWB2012: 30% e-AWB & standard EDI multi-lateral agreement2013: 70% e-AWB2014: 100% e-AWB
48 e-AWB today10 cargo hubs in 10 countries where e-AWB has already been piloted by 12 airlines162 airlines & local FFA to be actively engaged in April/May by IATA to raise awareness and mobilize the industry toward the 2014 mandate111 countries where e-AWB is legally feasible accounting for 95% of the global air freight volumes
49 Reduce your costs and delays Improve your customer service Start e-AWB, now!
50 Simple steps for your e-AWB project Set up your project teamDefine your deployment planEnsure technology is in placeSign your first EDI agreementsEngage and align your partnersUse the support from IATA
51 Set-up your project team Get the support from your Senior Management (Sales, IT, Legal, Operations, Customer support)Your e-AWB project champion needs to have a lot of IT background, the cargo experience and the passion to make it happen
52 Define your deployment plan When?First signed EDI agreement100% out of home market100% where feasibleHow?By freight forwarder?By GHA?Where?Home market?e-AWB markets?Top trade-lanes?e-freight trade-lanes?All trade lanes or only MC99/MP4 trade lanes?
53 Ensure technology is in place Ensure you have the capability to send, receive & archive FWB, FSU/RCS messages and Cargo ReceiptOffer web portal to your customers without EDI capabilityImprove your data quality
54 Sign your first EDI agreements Define your strategyContact your top 20 customers?Engage all your customers in the same market?Contact the local FFA and let them push for their members to sign the EDI agreements?Involve the right people: Legal is in the driver seat, Sales and Claims departments need to be trained & informed
55 Engage and align your partners CommunicateExplainAlignGround handlersFreight forwardersInterline partnersAirportsIT providersInsurance companies
56 Use the support from IATA Already availablee-AWB basicse-AWB specificationsIATA RP1670onComing soone-AWB scorecardse-AWB e-learning modulee-AWB Interactive Map to check the airports readinesse-AWB HandbookIATA Regional Workshops