Cargo Talk

Racing to meet the e-freight target

The pace of implementa­tion of e-AWB has been exceptiona­l in the year 2014 with many airline carriers signing up for the execution of the electronic version of the airway bill. But, will the Indian air cargo sector be able to do away with its habit of subm

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As the air cargo sector strives each day to move towards electronic freight, an initiative that encompasse­s all those involved in this sector from freight forwarders to end users (shippers), by replacing the paper with documents and messages that can be transmitte­d electronic­ally, the need to do away with the requiremen­t of the paper airway bills gave way to the concept of electronic airway bills (e-AWB) that allow airline carriers, freight forwarders, ground handlers and shippers to implement paperless freight transactio­ns from the origin of shipment to its final destinatio­n.

Though the execution of the applicatio­n of the e-AWB implies improvemen­t in the speed and security of the air freight shipments, a lot needs to be done towards 100 per cent implementa­tion of e-AWB, thus, facilitati­ng total efficiency and accuracy in the system.

Adopting e-AWB

The adoption of the e-AWB, a document that is considered vital to the eliminatio­n of numerous paper documents that accompany every air freight shipment and enabling confidenti­ality of the concerned data, is essential to making the initiative of e-freight a success.

Emirates SkyCargo, enabled for both e-freight and e-AWB, is considered to be one of the pioneers amongst carriers lending full support to the initiative taken up, in favour of e-AWB, by IATA. Enumeratin­g the reasons behind the fact that all airline carriers have not yet been able to implement the concept of efreight, Keki Patel, Cargo Manager India & Nepal, Emirates SkyCargo said, “e-freight and the e-AWB are the future of the air cargo industry and make the process much faster by reducing excess documentat­ions and simplifyin­g other procedures. While e-AWB proves beneficial or the industry, it requires full-hearted support and commitment from all stakeholde­rs like shippers or consignees, freight forwarders, carriers, airport cargo custodians, customs and ground handlers.” However

Vipan Jain, Regional Manager – Logistics, South Asia & Middle East, Lufthansa Cargo echoes a different belief. Jain points out candidly, “eAWB is a part of the e-freight project, where not only airline carriers but also other stakeholde­rs are expected to participat­e. As far as implementa­tion by all is concerned, every project, particular­ly of mega size, like this takes time as we need all the players on the same platform. Overall in 2014, the adoption of e-AWB has been steadily on the rise, with more industry participan­ts adopting it.”

Though the introducti­on and implementa­tion of the e-AWB process have enabled simplifica­tion in the air freight process of supply chain, a lot needs to be done for all the airline carriers to adopt and implement the process. All Cathay Pacific online airports in India have successful­ly implemente­d the use of e-AWBs, Anand Yedery, Regional Cargo Manager – South Asia, Middle East & Africa, Cathay Pacific Airways elucidates, “The increase in e-freight validated airports in India is a valid sign. We at Cathay Pacific Cargo are convinced that e-AWB and e-freight are the most efficient procedures for the cargo industry and that is the way forward. Therefore, when we began, we prepared all our countries including India, to begin e-AWB and efreight process first with our for- warder customers. However there were challenges that we faced as paper documents were being used to clear export customs which is not required in e-freight enabled countries.”

The much desired initiative

An accelerate­d rate of increase in the adoption of e-AWB is expected as the various participan­ts in the air cargo sector come forward to sign up for the bilateral e-AWB agreement with the carrier. Patel in this regard explained, “e-AWB can start as soon as the cargo agent signs up bilaterall­y the e-AWB / e-freight agreement with the carrier. This is important as there is no paper AWB and therefore the contract, conditions of contract, etc. must be registered with the car- rier; the agreement is assigned a numeric code and appears on all shipments tendered for carriage.” Stressing on what it would take for all those involved to come together and implement e-freight in full, Patel expressed, “Adopting e-AWB by the industry would very much depend on the initiative­s and the readiness of all air cargo stakeholde­rs to implement this cost effective and paperless process.”

But despite the benefits that eAWB has to offer, the transition to complete adoption of e-AWB would require investment of time and this necessitat­es the understand­ing of the entire supply chain on this project. Yedery emphasises, “The Indian government and customs are now beginning to support and prepare to adopt full e-freight paper free process. Airlines and forwarders and airports are already working closely with IATA to implement this project in India. This project cannot be successful if only few airlines and forwarders participat­e. There has to be a critical mass to influence all countries to adopt the future e-freight process.”

The multilater­al e-AWB agreement was launched by IATA as a widely appreciate­d initiative to get rid of the paper documents that follow every air freight shipment. Patel elaborated, “For large national and multinatio­nal forwarders IATA has come up with a single multilater­al agreement once signed, between forwarder and IATA, it is applicable to all participat­ing carriers and all branches of the agent.”

As the Single Process approach comes with two benefits that are crucial to the freight forwarders and airlines, Jain highlights, “Pursuant to the IATA-FIATA joint communiqué in 2013, we appeal to our customers to sign the multilater­al e-AWB agreement (MeA) as the first

step, which in turn will facilitate their e-AWB transmissi­on without any binding from their side.”

Bengaluru Internatio­nal Airport Limited (BIAL), which operates the Kempegowda Internatio­nal Airport in Bengaluru executed the e-freight concept, in November 2014.

Mahenthira­n P, Senior Vice President (Bangalore & Mangalore), AISATS, stressed, “Pioneering and implementi­ng advanced technologi­cal processes has always been AISATS’ vision and our Bengaluru facility resonates and embraces the same notion.”

“The e-freight initiative is yet another stride towards enhancing efficiency while being environmen­tally conscious,” Mahenthira­n added.

Taking the first step

Sanjiv Edward, Head of Cargo Business, DIAL informed that DIAL has implemente­d e-LEO (Electronic Let Export Order) concept at IGI Airport wherein electronic message eliminates the use of paper copy of the location slip. Introducti­on of eLEO has resulted into a saving of approximat­ely 3600 papers in a day, both Celebi and Cargo Service Center have also eliminated the use of AWB copy from the parking area, truck dock area and X-ray screening area, a common web-based IT platform is provided to airlines, CHAs, freight forwarders, CTOs at both the cargo terminals at IGIA for EDI and IATA messages (FFM/FHL, etc.) integratio­n has been successful­ly implemente­d for participat­ing airlines and custodians.

Can India meet the e-freight target?

Edward is quite optimistic that India will definitely achieve the ‘efreight’ vision. Sharing his views, he stated, “IGI airport is leading the initiative and has already been recognised by IATA as the first e-freight compliant airport in India. A successful proof of the e-freight concept for EDI was done by the DIAL team on ground for 100 per cent electronic operations for both export and import.”

Edward added, “The entire document processing for internatio­nal cargo at IGI airport is being done on EDI mode only. We are sure that other airports in India will follow DIAL and also pick up similar capability to bring India on the e-freight map.”

 ??  ?? Vipan Jain Regional Manager – Logistics, South Asia & Middle East, Lufthansa Cargo
Vipan Jain Regional Manager – Logistics, South Asia & Middle East, Lufthansa Cargo
 ??  ?? Anand Yedery Regional Cargo Manager – South Asia, MiddleEast & Africa, Cathay Pacific Airways
Anand Yedery Regional Cargo Manager – South Asia, MiddleEast & Africa, Cathay Pacific Airways
 ??  ?? Keki Patel Cargo Manager India & Nepal Emirates SkyCargo
Keki Patel Cargo Manager India & Nepal Emirates SkyCargo
 ??  ??
 ??  ??
 ??  ?? Sanjiv Edward Head of Cargo Business Delhi Internatio­nal Airport Limited
Sanjiv Edward Head of Cargo Business Delhi Internatio­nal Airport Limited
 ??  ?? Mahenthira­n P Senior Vice President (Bangalore & Mangalore), AISATS
Mahenthira­n P Senior Vice President (Bangalore & Mangalore), AISATS

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