Implementation Playbook - IATA

1 StB Cargoe-AWBI mplementation PlaybookOctober 2019 David SAUVM anager, Digital CargoStB CargoVersion control2 RevisedbyChangesVersionDateDavid Dec2016 David SAUVC hanges as per internal review withthe e-Cargo Dec2016 David SAUVC hanges as per comment from Regional Cargo 2016 David SAUVM inortypo and regional map Dec 2016 David SAUVM odification followingIATA and CX Jan 2017 David SAUVM odification followingAA Jan 2017 David SAUVM inor slide title modification ( ) Avr2017 David SAUVAddIBS as Jun 2017 David SAUVAdd BOS as eAWB360 Jun 2017 David SAUVC hange mission and visionof Digital Cargo (ex e-Cargo) Jul 2017 David SAUVC hange of EVA AIR AUG 2017 David SAUVAdd Freight Forwarder activationon step SEP 2017 DavidSAUVR eplace tableswith link to IATA 2018 Isaac BERTINO verall OCT 2019 StB CargoGeneral introduction to Digital Cargoe-AWB progress statuse-AWB Implementation stepsPre-requisite / Check the regulatory environmentStep 1 / Join the Multilateral e-AWB Agreement Step 2 / Ensure your technology supports e-AWBStep 3 / Ensure high-quality electronic messagesStep 4 / Ensure business processes are setStep 5 / Roll out e-AWBStep 6 / Report e-AWB shipmentsWrap 44 Table of ContentsStB CargoDigital Cargo @ IATABack to Table of ContentsStB CargoDigital Cargo @ IATAOur visionToachieveafullydigitallyconnecteda ndintegratedaircargosupplychainOur missionWeleadtheindustrywithend-to-endsu pplychaincollaborationondevelopmentofinn ovativetechnologystreamlinedprocessesand globalstandards5 Back to

2 Table of ContentsStB CargoDriving changeIATA supports Digital Cargo Implementation by developing industry standards and offering guidance and tools that facilitate the adoption of new initiativesWorkshop & conferenceBeyondtheWorldCargoSymposium, , Process & StandardInordertoremovepaperanduseelectr onicmessagesitisnecessarytohavecommonand clearbusinessprocessandstandards, ,IATA developedarangeofsolutionsaimingtohelpth eentiresupplychainactorsmovingtowardofpa perlesswayofworking:-Matchmaker-Cargo-XM L AutoCheck-Message Improvement , to Table of ContentsStB Cargoe-FreightDesigned to fulfill the visionBack to Table of ContentsStB CargoDigitization of the air cargo industryIn 2017, more than 50% of the global air trade rely on paper-based shipment can generate up to 30 paper documentsand many of the processes, such as track & trace, still depend on human interventionEach year, more than 7,800 tons of paper documents are processed,the equivalent of 80 Boeing 747 freighters filled with paper8 Back to Table of ContentsStB Cargoe-Freight.

3 Designed to fulfill the visione-Freight is an industry-wide program that aims to build anend-to-end paperless transportation process for air cargo made possible with regulatory framework, modern electronic messages and high quality of data9 Back to Table of Contentse-FreightispartoftheStBCargoprog ramaimingatmakingaircargoeasier, ,visibilityandsafetyEPICStB Cargoe-Freightbringsoperationalefficienc ythroughthereductionoftheendtoendprocess ingtime(upto24h)e-Freightimplementationf acilitatescompliancetointernationalandlo calregulations( (AEI)requirementsforsecuritypurpose)e-Fr eightwilleliminatemorethan7,800tonsofpap erdocumentsannually,theequivalentof80 Boeing747freightersfilledwithpaperStanda rdizationanddigitizationarekeyenablersfo rthedevelopmentofnewinnovativeservicesan dsolutions,thusincreasingthevalueoftheai rfreighttoshippers( )e-Freightbringscosteffectivenessthrough thereductionofdocumentprocessingandarchi vingcostse-Freightimprovesdataqualityand accuracy( ,mandatoryfields.)

4 E-Freight benefitsOperational efficiencyRegulatory complianceSustainabilityInnovationCost effectivenessData qualityThe ultimate goal of the e-Freight program is to bring benefits for the air cargo industry 10 Back to Table of ContentsStB CargoThe 3 pillars of the e-Freight programInitiated by IATA in 2006, the program became an industry-wide initiative involving carriers, freight forwarders, ground handlers, shippers, customs brokers and customs authoritiesThe e-Freight roadmap outlines a shared end-to-end industry approach with clear leadership roles, around three core components, or "pillars"Customs documentsTransport documentsCommercial & Special cargo documents 1. Customs documentsEngaging regulators and governments worldwide to create an e-freight route network with fully electronic customs procedures and where regulations support paperless shipments2. Transport documentsWorking collaboratively within the cargo supply chain to digitize the core industry transport documents, starting with the Air Waybill (AWB)3.

5 Commercial & Special cargo documents Developing a plan to digitize the commercial and special cargo documents typically accompanying airfreight today, in or outside of the Cargo pouch 11 Back to Table of ContentsStB CargoThe scope of e-FreightThe scope of e-Freight covers 20 documents supported by 12 Cargo XML message standardsScope of e-Freight documentsExport Goods DeclarationImport Goods DeclarationExport Cargo DeclarationImport Cargo DeclarationCustoms Release ExportCustoms Release ImportCertificate of OriginCITES CertificateShipper's Dangerous Good DeclarationCommercial documentsTransportation documentsCustoms documentsSpecial Cargo documentsCargo XML Messages supporting the e-Freight programTransport messagesCommercial messagesXML WaybillXML Freight Booked ListXML Custom Status NotificationXML InvoiceXML House WaybillXML Status MessageXML Shippers Declaration for DGXML Packing ListXML House ManifestXML Certificate of OriginXML Flight ManifestXML Shippers Letter of InstructionXINVXPCLXCOOXSLIXFWBXFBLXCSNX FZBXFSUXSDGXFHLXFFM12 Back to Table of

6 ContentsHouse ManifestMaster Air WaybillFlight ManifestTransfer ManifestTransit DeclarationFreight Book ListConsignment Security DeclarationInvoiceLetter of InstructionPacking ListHouse Air WaybillStB Cargoe-AWBE nabling the 100% e-Freight visionBack to Table of ContentsStB CargoThe Air Waybill: 1ststep toward e-FreightThe Air Waybill (AWB) is a critical air cargo document that constitutes the contract of carriagebetween the shipper and the carrier (airline)It is governed by IATA Resolution 600a The Air Waybill and 600b Air Waybill Conditions of Contract 14 Back to Table of ContentsStB CargoAWB and e-AWBT heelectronicAirWaybill(e-AWB)istheelectr oniccontractofcarriagebetweenthe shipper andthe carrier (airline)The Electronic Air Waybill Resolution 672 (MeA) removes the requirement for a paper Air WaybillThe original transportation contract is electronic (shipment record) There is no longer a need to print, handle or archive the paper AWBsimplifying the air cargo process15 Back to Table of ContentsStB CargoThe 2 components of an AWB can be found both in the paper and in the electronic worldsPaper AWB versus electronic AWBF ront (600a)Reverse (600b)

7 +ElectronicmessagesSigned e-AWB agreement+e-AWBP aper AWB16 Back to Table of ContentsStB Cargoe-AWBW here do we stand now?Back to Table of ContentsStB CargoStatus as of October 2019In October 2019, the Air Cargo industry processed more than million Air Waybills (AWBs)Theindustryisdrivenbythreemainregi onsrepresenting73%oftheAWBs:Europe,AsiaP acificandNorthAsia18 Back to Table of Contents2%22%29%3%22%4%18%AfricaAsia PacificEuropeMiddle EastNorth AsiaCanada-LATAMUSAStB Cargoe-AWB penetration: 66%as of October 201919 Back to Table of ContentsTheglobale-AWBpenetrationreached 66%onthelegallyfeasibletradelanes(~64%of theAWBs) % % CargoBack to Table of Contents20 TOP performers / September 2019 For more insight on the e-AWB performance at airport level, check out theTop 100 Airports monthly report(pdf)Thee-AWB monthly update(pdf) lists thetop participating countries, airports, airlines, andfreight forwardersStB Cargoe-AWB adoption / main challengesSince its global rollout, the industry adoption of e-AWB faces the bellow main challenges.

8 Regulatory constraintsLack of harmonizationTechnology limitationComplex processMaturity threshold e-AWB is not possible in all airports and all trade lanes due to regulatory limitations e-AWB procedures are not harmonized between freight forwarders, airlines and ground handling agents in key airports where e-AWB is live Many of the SME forwarders do not have the technical capability/EDI enabled systems to enable them to transmit shipment data to airlines Some large forwarders face the same issue: their local branches are the result of SME forwarders acquisition and their IT system have not been aligned with the rest of the company Perceived complexity to do e-AWB for forwarders dealing with multiple airlines Some markets reached a certain level of maturity where major actors (airlines / freight forwarders) already achieved the biggest potential21 Back to Table of ContentsStB Cargoe-AWB adoption / supporting initiativesIn order to address the e-AWB adoption challenges and to accelerate the growth in the penetration rate, the following supporting initiativeshave been delivered.

9 Expand number of trade lanes where e-freightand e-AWB are possibleHarmonize e-AWB procedures in key airports across forwarders airlines/GHAP rovide Implementation guidance and materialsCoordination efforts of industry in key e-airports Continue the government supported e-freight initiatives in key locations Developed an e-AWB Global Standard Operating Procedure (SOP) Developed an Implementation Playbook to support the adoption of e-AWB Strengthen the e-AWB penetration rate in the existing eAWB360 airports Deploy eAWB360 initiatives at additional airports (in particular in Europe)22 Back to Table of ContentsStB Cargoe-AWBHow do we implement it?Back to Table of ContentsStB CargoImplementing e-AWB in 6 stepsThe following 6 steps are key to ensure the success of an e-AWB implementationAs a prerequisite, please verify that local regulations authorizethe use of e-AWB as a contract of carriage between the shipper and the carrier Jointhe Multilaterale-AWB AgreementEnsureyour technology supports e-AWBE nsurehigh-quality electronic messagesEnsurebusiness processesare setRoll oute-AWBR eporte-AWB shipments16234524 Back to Table of ContentsStB CargoPre-requisite /Check the regulatory environmentBack to Table of ContentsStB CargoRegulatory framework for e-AWBThe use of e-AWB as a means to establish the contract of carriage is only recommended on feasible trade September, the feasible trade lanes represented 64%of the AWBs.

10 (MP4)ortheMontrealConventionof1999(MC99) Theuseofe-AWBasacontractofcarriagebetwee nthe shipper andthe carrier mayalsodependsongovernmentauthoritiesrec ognizingandacceptingthee-AWBUSA / FranceMC99 countriesBrazil / NigerMP4 countriesCountries that have ratifiedMC99 Countriesthat have ratified MP426 Back to Table of ContentsStB CargoStep 1 /Join the Multilateral e-AWB AgreementBack to Table of ContentsStB CargoStep 1 / Multilateral e-AWB Agreement Beforestartinge-AWB,Airlinesandfreightfo rwardersarerequiredtosigntheMultilateral e-AWBA greement(MeA)followingthebelowsteps:TheI ATAM ultilaterale-AWBA greement(IATAR esolution672) ,freightforwardersandairlineseffectively enterintoe-AWBA greementswitheachother, , and read the Resolution 6721 Download, fill-in and sign the Resolution 672, Attachment D 2 Send the Airline Submission Form to IATA3 Airline to be listed as party to the MeA4 Airlines processComplete and submit the Online Joining Form1 Receive the Agreement by e-mail from IATA Cargo2 Review and e-sign the Agreement 3 Receive Final agreement after counter-signed by IATA4 Freight Forwarder will be listed as party to the MeA5 Freight Forwarders processBenefitsFree of chargeProvides the necessary legal framework for establishing electronic cargo contracts (e-AWB)Avoids the need to negotiate numerous bilateral e-AWB agreements with AirlinesEnables to do e-AWB with all participating AirlinesParticipating Airlinesand Freight Forwarders are listed on the IATA website.