IATA: Paperless Cargo By 2010

Colors… In Switzerland ID-LIGHT created this dramatic and beautiful multi-colored object d’ art wall relief, executed in the Hotel Crowne Plaza, Geneva.
Meantime in the main meeting hall, air cargo industry executives worked for three days last week developing a plan to take air cargo paperless by 2010.

Last week a large interesting and innovative group of industry executives met in Geneva at the behest of IATA.
    The gathering both called for and discussed wide-ranging innovative ideas and plans for a rather rapid exit of the air cargo paperwork jungle.
    In fact if the ambitious schedule mapped out last week comes to pass, by 2010 most of the world’s air cargo business will be paperless.
    The IATA e-Freight Conference November 1-3 included attendance from airlines, forwarders, WCO and UN officials and also the usual suspects including publications, salesmen and other vendors.
    But did IATA e-freight work?
    Our observation is that presentations were crisp and well thought out.
    We also noted that amongst the worker bees at this event there is growing feeling that at long last the air cargo industry at large is receptive, on track and quite supportive of the e-Freight project.
    Customs folks from all over also seemed quite enthused
    It can be reported here that Customs is advancing rapidly with their initiatives to move into the paperless era.
    At IATA e-freight, the feeling prevailed amongst attendees that the industry should proceed on both understanding and implementation in gradual advancement, leading up to the pilot paperless program in 2007.
    In this scenario some early e-freight devotees, especially the airlines and forwarders, will move to go paperless during 2006 and then interface with customs at industry launch in 2007.
    Emirates Sky Cargo Senior Vice President Ram Menen delivered the e-freight Conference keynote speech standing in for Lufthansa Cargo President Jean-Peter Jansen who was taken sick at the last moment and couldn't make it to Geneva.
     Mr. Menen noted:
     “Technology is not the constraint, rather mindset is what needs to be changed in air cargo.
     “Ever since the advent of Information Technology called Data Processing, the air cargo industry has been talking about a paperless environment.
     “Reality is that during the past few decades the industry has actually produced more paper than ever.
     “Developing air cargo technologies up until recently have been a limiting factor in going paperless simply because of strict frameworks and standards that by their nature are largely inflexible.
     “In truth, once the dream for a paperless air cargo environment was born, marketing hype overtook the advancement of technology.
     “Today the evolution in technology complete has made it possible for the air cargo industry to operate in a broad logic environment.
     “We have been freed of the need to operate within those former strict developmental standards.
     “Air cargo today is able to perform a single transaction with multiple parties using various standards.
     “At Emirates, we are up to solving the e-freight challenge, and we are quite confident about being able to achieve the industry objective by 2007.”
     Aleks Popovich who serves as IATA Global Head of Cargo noted:
     “e-freight aims to eliminate the need to produce and transport all paper documents for air cargo shipments
     “This effort is well worth everyone’s attention in air cargo.
     “Annually the industry can save about 1.2billion USD while reducing the cost of paper issue and process by 80%, and shipment time by 25%.
     “The e-freight approach is nothing less than a fundamental business change for air cargo, driving process and standards, enabled by technology.
     “We are aligning and mobilizing all air cargo supply chain participants, led by IATA while utilizing our critical mass to address current government and regulatory obstacles.”
Jim Friedel, Senior Vice President-Pacific & President Cargo, Northwest Airlines was also quite clear in his message and support for the project. Northwest Cargo, it is immediately evident, has done both its homework and research and is way ahead of most everybody else in achieving a paper-free environment.
     Mr. Friedel spoke of NWA’s effort in concert with many forwarder customers in an ongoing effort to achieve 'clean data'.
     Jim Friedel cautioned that advancement toward a true and workable paperless environment for air cargo will be achieved by moving in a methodical and measured pace while seeking consensus amongst all parties involved.
     Mr. Friedel suggested that forwarders and airlines go at it first.
     There were excellent panel discussions and presentations at IATA e-freight 2005, maybe some of the best most forward looking discussion so far anywhere this year in air cargo.
     Robert Ryan who is Program (spell that Programme) Director IATA e-freight, having moved to IATA on assignment from a UK transportation think tank, did his part setting the tone for the future as the conference closed.
     Mr. Ryan said:
     “IATA e-freight has moved forward during its first six months.
     “We have identified and are prepared to navigate various challenges and roadblocks while securing process and standards, stakeholder management, legal & regulatory objectives and technology.
     “As-Is” and “To-Be” business processes and documents have been mapped out.
     “With the cooperation of FFI, FIATA, WCO, Cargo 2000, Cargo Committee, UN, and others, various technology options are under evaluation that will support the IATA e-freight Business Change
     “In terms of a time line we expect pilot paperless projects to be in affect by January 2006 with implementation by June 2007 amongst early adopters.
     “By 2010, 95% of air cargo could be compliant.”
     A sentimental favorite of ours at IATA e freight Conference was Sue Probert who talked at length as editor of UN/CEFACT.
UN/CEFACT is a United Nations body, with global impact that encourages close collaboration between governments, vendors and private business to secure the interoperability for the exchange of information between the public and private sector.
     It is now drawing up the next generation of trade facilitation and e-business standards and tools.
     UN/CEFACT includes delegations from member countries and international organizations.
     But critical to the success of the IATA new business plan for e-freight is revealed in that UN/CEFACT develops, publishes and maintains trade facilitation recommendations, e-electronic business standards, and technical specifications for the three pillars including the business and regulatory processes information stream and technology.
     “Our outreach program builds partnerships between external organizations such as OASIS, WCO, GS1, IATA.”
     Maybe that statement albeit brief, was most significant, even maybe beyond all the numbers and implementation predictions, and hopes and dreams at this conference.
     When all is said and done the ability to communicate in a language that everybody understands as what they meant, may be recalled in history as delivering the critical component in eliminating the paperwork jungle in air cargo.
     IATA e- freight Conference was among the best, most beneficial and hopeful gatherings of 2005, is our stand.
(Geoffrey Arend)