e-AWB Mandate.
What will it Change? Angel Cabeza Rivas, Head of Network & Product
Development, Iberia Cargo
IBERIA e-AWB VISION
The AWB is the common document for all shipments…
Let´s Make it HISTORY !
Number of Documents & Complexity
Benefits &
Shipments
eAWB
eFreight
Now
THE SOLUTION
Spanish Customs Support
IT Systems readiness: iberia-cargo.com & TRAXON GLOBAL CCS
eBusiness HelpDesk: eAWB & eFreight
are MAJOR changes for all participants
IATA RP1670 full endorsment as
IB eAWB standard Agreement
Forwarders & IBERIA Top Management willingness to embrace
this initiative and get eAWB benefits in early stages
IBERIA eAWB KEY SUCCESS ELEMENTS
IBERIA e-FREIGHT & e-AWB STATUS
More than 10 with Global & Local Forwarders
from Spain, Colombia, Germany
have already signed with IB eAWB Agreement
IBERIA as part of the IATA eAWB Working Group
support the IATA RP 1670, and takes it as the
Standard IB eAWB Agreement
Other 2 Global and 8 Local
Forwarders to join during 2011
IBERIA e-FREIGHT & e-AWB STATUS Total
0
500
1000
1500
2000
2500
3000
01/0
2/2
008
01/0
3/2
008
01/0
4/2
008
01/0
5/2
008
01/0
6/2
008
01/0
7/2
008
01/0
8/2
008
01/0
9/2
008
01/1
0/2
008
01/1
1/2
008
01/1
2/2
008
01/0
1/2
009
01/0
2/2
009
01/0
3/2
009
01/0
4/2
009
01/0
5/2
009
01/0
6/2
009
01/0
7/2
009
01/0
8/2
009
01/0
9/2
009
01/1
0/2
009
01/1
1/2
009
01/1
2/2
009
01/0
1/2
010
01/0
2/2
010
01/0
3/2
010
01/0
4/2
010
01/0
5/2
010
01/0
6/2
010
01/0
7/2
010
01/0
8/2
010
01/0
9/2
010
01/1
0/2
010
01/1
1/2
010
Total
Coloque campos de página aquí
Cuenta de Nº AWB
mes
Coloque campos de serie aquí
Over 2.000 eFREIGHT (eAWB) shipments each month and growing
e-AWB CAGR 2008-2010: +65%
MAD: 19%
SPAIN: 12%
NETWORK: 5%
% eAWB by origin
IBERIA e-FREIGHT & e-AWB STATUS
IATA MIP, Dec 2010
IBERIA 5th Airline in the World & 1st European Airline
WHATS NEXT?
Legal framework is
favourable with
MP4/MC99, and the
eAWB Agreement
defined
ALL WE NEED IS A
FIRMLY SUPPORT
FROM
INTERNATIONAL
CUSTOMS
Everything is in place now to make WORLDWIDE
the e-AWB iniciative a REALITY.
IT Systems are ready. We All (Shippers,
Forwarders &
Carriers…) are
willing to start!
Keynote: State of the Industry:
What has changed over the last 18
months, and how does it
impact the future? John Batten, Executive Vice-President Global
Cargo, Swissport International Ltd.
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
What has changed over the last 18 months,
and how does it impact the future?
IATA World Cargo Symposium, Istanbul, 10th March 2011
John Batten
EVP Global Cargo
Swissport
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off: NPT Profit* Global Commercial Aviation Industry in $b
-20
-15
-10
-5
0
5
10
15
20
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10F
INDUSTRY MADE MONEY IN 2010
but still a net loss overall
Source = IATA * Net post-tax profit
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
PROGRESS IN LAST 18 MONTHS?
Not enough. Isolated pockets of activity
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
CARGO 3000
(or still 2000?)
Project initiated in 1997
Phase 1 incomplete / Phase 2 incomplete / Phase 3 even possible?
Main obstacles:
• Deviation from the original Master Operating Plan (MOP)
• Different application of the business rules / definitions
• Different priorities of members
It is time to create a new C2K Master Plan in order to get this paper-tiger moving!
Get Ground Handlers on the Board to make change happen faster!
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
e-freight
why the slow take up?
Project initiated in 2006
2009 0.1% of all international shipments were e-freight. In 2010 this increased to 0.3%. Low penetration. Why?
Main obstacles:
• Savings in time and cost are not always achieved in reality. Same flight, same clearance time. No benefit
• Where value is generated, it is not shared up and down the chain
• Low perception of added value by Forwarders
• Reluctance to invest now in future benefits
• Poor discipline with regard to messaging e.g. FWB
• Time to tackle the obstacles in order to turn paper into reality?
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
SECURITY
globally aligned?
Many different standards TSA, EU
No global alignment.
No direct engagement with GHA
State regulations vary e.g. RASCO is approved in FR as primary
method of screening, whilst only secondary in UK
Adoption of known shipper concept varies in its specifications
and application
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
INFRASTRUCTURE
is cargo the ugly duckling?
Airports prefer to invest in glamorous passenger facilities. Cardboard boxes don‟t spend money
See the growth that occurs when investment is made
• Flower market DXB
• HKG – Achieved world‟s highest air cargo volume in 2010
Regional, for example EU: Road Cargo continues to gain attractiveness versus Air Cargo for intra-continental shipments due:
• Borders controls effectively disappear. Delays at borders are reduced
• LCC pushing out Legacy Carriers on regional routes
Time to push airports to “upgrade” to commercially attractive Air Cargo infrastructure? IATA can play a role here
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
Information Technology
no shortage of it but seamlessly aligned?
There are tens of different cargo handling systems in use
All manage to communicate reasonably well through Freight
Status Update (FSU) messaging, but different versions are in
use
Internet offers huge potential for seamless communication
Take up of XML format is not mandatory, nor are there fixed
deadlines for compliance
As an industry we do not capture many of the possible benefits
that IT can bring
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
CUSTOMS
globally different
Not aligned. Not just globally or regionally, even cities like Moscow
have different customs authorities
Bureaucracy still exists in many locations
Dwell times remain too high. A shipment can be 8 hours en-route and
then another 72 hours clearing Customs.
IT can offer a partial solution, but the rest needs industry engagement
and lobbying.
WE need to offer Customs solutions that save them time and cost,
whilst at the same time making borders even more secure.
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
THE ROLE OF IATA
cannot act in isolation
Encouraged to see the new collaboration between IATA, FIATA,
TIACA (GACAG), but where is the GHA?
The GHA needs more involvement, we can help
Should we form a GHA Association? Let us be Drivers instead
of Passengers?
IATA still seen as looking after the needs of airlines. A more
holistic approach is required. GACAG just the start…but a good
one nevertheless
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
SWISSPORT IS NOT SLEEPING…….
building upon 2010
Our Initiatives:
Customer focus: CRM, product development, Customer Feedback, Continuous Improvement. Engage, Listen, Act, Review
Quality improvement: Measurement by KPI, C2K Station Certification, SLA‟s
Performance optimisation: 5S, IT upgrades, Facility re-engineering
Standardisation: Swissport Formula, Process Mapping
Training: Invest in people, retain and develop good people, deliver better quality to our Customers
Engagement, engagement, engagement!
With our Customers, and our Customers Customers
With our Management, Staff, and Suppliers
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
“SO WE NEED GREATER INTERACTION AND
ENGAGEMENT"
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
THANK YOU
John Batten
+41 79 834 7779
Panel: Improving Global Supply Chain
Synchronization And Agility.
Are We On The Right Track? (Presentations And Q&A)
Moderator: P. Balasubramanian, Mgr. Cargo Global Ops Services,
Emirates SkyCargo
Panel: Sandeep Fernandes, Mkt. Dev Mgr. Cargo & Logistics, Mercator
Sebastiaan Scholte, Chief Executive Officer, Jan de Rijk logistics
Alan Wright, Global Cargo Network Development, Swissport International Ltd
Improving Global Supply Chain
Synchronisation and Agility
- ARE WE ON THE TRACK?
IATA World Cargo Symposium 2011
9th March 2011 - Istanbul
P. Balasubramanian (Bala)
Manager Cargo Global Operations Services
Emirates Airline
Reality check ? ……………
• Do we have standards …
( IATA ACM similar to IATA AHM?)
• Ever chasing standardisation ….
(Heterogeneous development ?)
• Do we have KPIs to measure vendors …
(GHA‟s activities ?)
• Do we enter information ONCE correctly and say …… that‟s it ?
(Information pipeline ?)
Who best other than ……………
• A Ground handler
• An RFS Service provider
• A Cargo systems provider
Fasten your seat belts !
www.janderijk.com
Jan de Rijk Logistics
Improving Global Supply Chain Synchronization and
Agility
Are we on the right track?
Sebastiaan Scholte – C.E.O. Istanbul, March 2011
Jan de Rijk at a glance
Over 1,000
employees and
25 offices in 15
countries in
Europe
Strong asset
based operator
with 700 trucks
and 1,300
trailers
4 lines of Business:
• International
Transport
• Warehousing
• Benelux distribution
• Retail distribution
European Road Feeder Service daily network snapshot
• Time: It is essential to deliver on time,
while being flexible in changing customer
demands
• Place: Having the required availability at
the right place trying to balance the
network as much as possible
• FTL versus LTL: Depending on customer
demands and load factor optimization
• Hubs: Operating from hubs from where
the network is optimized
• Import/Export ratio (in vs out): Trying to
complement imbalances in the network
• Availability of equipment or third
parties: Having a strong network of
external providers
Network dynamics and planning
The Goal is to achieve a high load factor
and yield, as well as utilizing your asset
(truck) as much as possible to deliver
the customer a high quality service
37
Air cargo in the procurement chain
Build/ Reconfigure/ Weigh Pallets
Load Aircraft
Offload Re- Config
Transfer Delivery Shipper
Handling Agent Forwarder Handling Agent Forwarder
Consignee
Airline
Origin Onload Airport Offload Airport Destination Trucking Trucking
Transfer
Off-line
Airport Off-line
Airport
Transfer Delivery
• Most of the transit time of an air freight shipment is on land
• Competitive advantage for an airline is therefore also on
ground
• Trucking is a large part of this transit time
Contractual relations
AIRLINE
RFS
GHA
GHA
• Relationship between GHA and RFS provider is not contractually enforceable
• Nevertheless RFS provider is often faced with long waiting hours and the GHA with relatively unplanned peaks
• Utilization of assets and load factor is important for airline and RFS provider while manpower is the biggest cost item for both the GHA and the RFS provider
• A seamless and quick transition both benefits the economics of all as well as the end consumer
Let’s align processes to ensure efficiency in the supply chain
• Vertical & horizontal collaboration in order to eliminate waste
• Information & communication is key
• Security will improve as well
• Tri-party relationship
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
Improving Global Supply Chain Synchronization
and Agility.
Are we on the right track?
Alan Wright
Istanbul, 10 March 2011
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off: Lack of a single blueprint or Master Operating Plan (MOP)
Different IT platforms & FSU versions in use
System capability and management (messaging)
Lack of discipline (timings, messaging)
Lack of information e.g. % fill or volume
Players do not synchronize their modal networks
The Issues
what makes it difficult?
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
Who can we learn from?
Integrators have solved many issues
3/14/2011 | Page 43
End to end data integrity
Synchronization of road and air movements
Widespread Customs pre-clearance
Coordination and pre-planning of volume. Real-time manipulation
of volume. (Containerisation)
C2K Phase 3 & e-freight are not merely aspirations
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
So Containerisation?
what is it, and what are the advantages?
3/14/2011 | Page 44
We care! : Ground Handling
: Cargo
: Fueling
: Executive Aviation
: Aircraft Maintenance
: Aviation Security
From landing to take-off:
Impossible?
Common denominators and what is missing?
3/14/2011 | Page 45
Common denominators
Air Cargo / Aircraft & Trucks / IT Systems / Warehouses / ULDs
What is missing?
- Engagement
- Planning
- Structure
- Discipline
There is huge a opportunity in front of us….
IMPROVING GLOBAL SUPPLY CHAIN
SYNCHRONIZATION AND AGILITY. ARE WE ON THE
RIGHT TRACK?
(PRESENTATIONS AND Q&A)
Quality, Standardization & simplification,
Technology
Sandeep Fernandes
Market Development Manager Cargo & Logistics, Mercator
Past worst recession
Increasing costs
Eroding yields
Customers want faster,
cheaper, reliable service
Source Boeing
Air Cargo industry situation
Industry response: Electronic Integration
Vertical Integration
Electronic Integration
Non Integrated Supply Chain
Electronic Integration Benefits
Reduce processing costs
Reduce processing errors
Improve delivery times
Better customer service
…Increased industry profitability
Challenges to achieve electronic integration
Standardization Vs Flexibility
– Limited Richness
– Limited Reach
„distribution control‟ > intermediaries
– CCS
– „industry‟ Portals
Intra organisation integration
The Solution: “Insource” distribution capability
Inflexible standards -> Richness and Reach?
Power of information distribution?
e-freight dilemma?
Inter/intra organisation integration?
Future proofing?
Increased Richness and Reach, through open
standards
Power of information distribution retained
e-freight benefits achieved
Inter/intra organisation integration ready
Future proofed
The tool: Integrated Message Broker
Sits “on-top” of the cargo
application
Receives data and transmits
data
Multiple Media: SMS, Email,
FTP, MQ….& Type b
Multiple Formats: <enter your
format here>
…An integral part of SkyChain
Message Broker Benefits
Combat emerging cost pressures &
mode switching through:
– Lower processing costs
– Lower communication cost
– Increased Reach & Richness
Quicker delivery times
Improved Customer Service
Retain power of distribution
Choice & Freedom