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Industry Scorecard - Airline

 

The E-Freight Industry Value Chain

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Shipper  Forwarder  Ground HandlerAirlineCustoms Broker  |  Trucker  Consignee



 

BENEFITS OF DIGITIZATION

 


DIGITIZATION OF

DOCUMENTS

  • Timely data received from Shipper and Forwarder.
  • Reduce manual data input error and mistake compare to paper mode.
  • Better data quality as airline rejected data issue back to forwarder amendment.
  • Ready to support Advance Cargo Data Reporting and Export and
  • Import Customs electronic declaration.
  • Able to influence Customs and Authorities to adopt electronic data or electronic document submission rather than paper to shorten shipment cycle time.
  • Reduce loss of paper document which caused shipment delay.
  • Reduce paper storage replaced by electronic storage and can be retrieved quickly when required.
  • Improve communication between airline and forwarder/shipper with everyone invested in e-business by returning.
  • Able to exchange booking and shipment status between airline and forwarder in FSU message or C2K Routemap.
  • Enable airline or forwarder companies to re-use the data to improve internal operational processes.

 

 

eAWB

  • Speed, accuracy and greater efficiency and labor cost reduction

  • Replace paper contract by electronic contract, airline with same protection.

  • Data quality maintain at a good level.

  • Remove paper AWB printing by forwarder enable them to take last minutes cargo from their shipper.

  • Advance data available supports regulatory requirements security, customs and advance data reporting regulatory requirements

   

eCSD

  • Much clearer who, when and how to secure the cargo.
  • Hope to align one system-wide standard.
  • Remove the existing paper security declaration forms.
   

eFREIGHT

  • Reduction in pouches
  • Reduce document handling costs for shipper, forwarder, GHA and airline.
  • Encourage e-Customs and increase number of automatic clearance shipment percentage.
  • Improve shipment overall cycle time with e-Customs and no more document missing.
  • Environmentally friendly with using much less paper.

 

Invoice:

  • Support data reuse and send them to concern parties.
  • Have the value of the cargo data in advance.

 
Packing List:

  • Understand the size of each box and the box content.

 

 

Certificate of origin:

  • Fulfill regulatory requirement.
  • Remove the trouble of missing CO.

 

Letter of Instruction

  • Facillitate forwarder and airline on how to prepare the House Waybill or Air Waybill data by electronic means with timely information compared to paper.

 

 Dangerous Goods Declaration:

  • Airline can have advance information to better handling of DG products.
  • When something happen to this cargo, the information can be retrieve online.
  • Improve airline or warehouse e-handling.

 

Cites Certificate:

  • Avoid missing of this document and reduce customs issue.

 

Master Air waybill:

  • Remove airline or GHA manual input the data into various system.
  • Accurate AWB data and support billing process.


House Manifest

  • Better information availability for security declarations at destination
  • Remove airline or GHA manual input the data into various system.
  • Accurate HAWB data and support customs clearance.
  • Can enable automatically cross check physical cargo and e-AWB cargo weight.

 

Export Goods

  • Support electronic export clearance of the cargo by sending data to Customs.
  • Provide a system-wide standard for customs export reporting at AWB and House level.


Customs Release Report

  • Enable Customs to inform shipper, forwarder or consignee required additional information or clearance is completed.


Flight Manifest

  • Less paper handling
  • Enable GHA and Customs at destination about cargo are onboard on incoming flights in advance.
  • Better prepares required equipments if required.


Transfer Manifest

  • Less paper handling
  • Enable two e-Freight airlines to adopt e-AWB/e-Freight handling which save paper and time on doing Interline transfer by electronic means.


Expo Cargo Declaration

  • Less paper handling
  • Support airline electronic clearance of the cargo by sending data to Customs.
  • Provide a system-wide standard for customs export reporting at
  • AWB and House level.


Import Cargo Declaration

  • Less paper handling
  • Support import electronic clearance of the cargo by sending data to Customs.
  • Provide a system-wide standard for customs import reporting at AWB and House level.

 


Transit Declaration:

  • Enable electronic customs reporting for airline transit shipments.
  • Reduce Customs on number of physical examination shipments.
  • Security Declaration
  • Should adopt e-CSD, a global standard.
  • Freight Book List
  • Enable information share among airline and GHA to accept cargo from forwarder and create the build up plan by flight
  • Customs Release Import
  • Enable Customs to support electronic clearance for import shipments.

Security Declaration

  • Should adopt e-CSD, a global standard.


Freight Book List

  • Enable information share among airline and GHA to accept cargo from forwarder and create the build up plan by flight

Customs Release Import

  • Enable Customs to support electronic clearance for import shipments.

 


   
 CARGO 2000
  • Enable one common standard to measure Forwarder, warehouse and Airline performance.
  • With a standard set of reports on individual station performance and ranking, this will drive stations to achieve better performance and ranking.
   
 MOP
  • One common standard on Master AWB level allowed airline and forwarder members to provide shipment movement details against plan.

  • Phase 1 is to measure airport-to-airport performance. Facilitate forwarder to perform comparison by airline
   
 PHASE II
  • One common standard on House AWB level allowed forwarder, shipper and consignee provides shipment movement details against plan time.
   
 PHASE III
  • One common standard on piece level tracking allows forwarder and airline shipment movement details against plan time.
   
 DATA RE-USAGE
  •  Reduce manual input time and improve overall data quality.
   

 

CHALLENGES OF DIGITIZATION



DIGITIZATION OF

DOCUMENTS

  • Lack of e-AWB and e-Freight knowledge and know how.
  • Reluctant or not feel comfortable to adopt the change from paper mode to e-process.
  • Mandate paper document from export customs and authorities make it difficult to rollout total e-process.
  • Initial IT investment is required in developing electronic messages, costs of electronic messages and network capabilities.
  • Poor electronic messages data quality caused additional overhead from airline. Lack of resources to rollout this huge project system-wide.
  • Different airlines rollout at different pace with different standards.
  • Different locations have different requirements need to address by IT enhancements which slow down the rollout.
   
eAWB
  • Performance reduced to least common denominator of CCS
  • Inconsistent/poor performance on forwarder registration, FMA/FNA, FSU delivery
  • Poor data quality issue caused no cutover e-AWB possible. Other charges code are not standard across all airlines.
  • Members with FWB version 16 or below may cause incomplete address information.
  • Difficult to choose to maintan using CargoImp or invest to develop XML message.
   
 eCSD
  • Difficult to identify and convince the e-CSD project benefit to the users.
  • Not many forwarder systems can support e-CSD data in their FWB messages which slow down the project implemetation. Use CSD paper is not a smart alternative.
   
 eFREIGHT
  • Only few global forwarders can eliminate their paper pouch which cannot provide critical mass for the members to gain the project benefits.
  • Difficult to influnce remaining Warsaw countries to sign MC99 convention and support e-AWB and e-Freight.

1. Invoice Members need to invest in IT system and network to implement and exchange this new XML message with their partners which may take a long time to be commonly adopted.

 

2. Packing List Members need to invest in IT system and network to implement and exchange this new XML message with their partners which may take a long time to be commonly adopted.

 

3. Certificate of Origin Members need to invest in IT system and network to implement and exchange this new XML message with their partners which may take a long time to be commonly adopted.

 

4. Letter of Instruction Members need to invest in IT system and network to implement and exchange this new XML message with their partners which may take a long time to be commonly adopted.

 

5. Dangerous Goods
Declaration Members need to invest in IT system and network to implement and exchange this new XML message with their partners which may take a long time to be commonly adopted.

 

6. CITES

certificate Members need to invest in IT system and network to implement and exchange this new XML message with their partners which may take a long time to be commonly adopted.

 

7. Master Air Waybill

Duplicated with eAWB above.

 

8. House Waybill

Forwarders are too slow to digitalize their House Waybill Manifest. IT network providers also required to enhance their system to support e-House Manifest.

 

9. House Manifest

Some countries require special information to be shown in the House Manifest (FHL) data exchange make it difficult for every member to follow.

 

10. Export Goods

Many countries have created their own messages specification for their oen

 

11. Customs Release

Export Members need to invest in IT system and network to implement and exchange this new XML message with Customs which may take a long time to be commonly adopted. The XML standard messages come out too late after most country customs have already defined their own messages standard and are commonly use in that country.

 

12. Flight Manifest

Do not have issue which is commonly used and exchanged today. Airline and warehouse members can manage to adopt XML message together.

 

13. Transfer Manifest  

 

14. Export Cargo
Declaration Require to wait for more airlines implemented e-AWB then the Transfer Manifest XML standard can be fully adopted.

 

15. Import Cargo Declaration

Members need to invest in IT system and network to implement and exchange this new XML message with Customs which may take a long time to be commonly adopted.


The XML standard messages come out too late after most country customs have already defined their own messages standard and are commonly use in that country. 16. Transit Declaration Members need to invest in IT system and network to implement and exchange
this new XML message with Customs which may take a long time to be
commonly adopted.


The XML standard messages come out too late after most country customs have already defined their own messages standard and are commonly use in that country.

 

17. Security Declaration

Members need to invest in IT system and network to implement and exchange this new XML message with Customs which may take a long time to be commonly adopted.


The XML standard messages come out too late after most country customs have already defined their own messages standard and are commonly use in that country. 18. Freight Book List* The existing number of active members is still small.


This project is quite difficult in terms of knowledge and experience to devel- op and implment by SME unless system platforms can be provided by C2K vendors. 19. Import Goods Declaration Members need to invest in IT system and network to implement and exchange
this new XML message with Customs which may take a long time to be
commonly adopted.


The XML standard messages come out too late after most country customs have already defined their own messages standard and are commonly use in that country. 20. Customs Release Import Members need to invest in IT system and network to implement and exchange
this new XML message with Customs which may take a long time to be
commonly adopted.


The XML standard messages come out too late after most country customs have already defined their own messages standard and are commonly use in that country.

   
CARGO 2000
  • The existing number of active members is still small.
  • This project is quite difficult in terms of knowledge and experience to develop and implment by SME unless system platforms can be provided by C2K vendors.
   
MOP

  • For airline and forwarder members they have to learn from experience or existing ways of Sales and Operations practices in order to fine tune their C2K system.
   
PHASE II
  • Not many forwarder members can support Door to Door Routemap and processes by their C2K system.
  • It will be with same difficulties for new SME to adopt the phase II as well.
   
PHASE III
  • Phase III is even more difficult to impelment. Compare to Phase I and Phase II until a time when the cost of GPS tracking equipments and parts are low enough to be widely adopted by cargo industry.
   
 DATA RE-USAGE
The challenge is to link up all related parties to exchange the data from source and how to redesign internal systems to make such automation for cross company sections.

 


 

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