CRITICAL mass on e-freight is ‘closer’ but there still is a way to go, according to the International Air Transport Association (IATA), which held an e-cargo conference attended by 194 industry delegates June 19-20 in Geneva, writes Jack Handley.
On the plus side, said IATA global head of Cargo Des Vertannes, is the growing understanding among airlines and governments as well as private industry that e-freight is not simply about removing paper, it’s about making the freight administration process more efficient, more cost-effective and faster.
Also, he said, there are some ‘major hitters’ in the aviation world that are adding their weight to adoption of e-AWB and e-freight generally. These include Germany’s Lufthansa, Singapore Airlines, Hong Kong’s authorities and (among the most important of all, given the region’s growing dominance as a world trade hub), leaders in Dubai who are driving the adoption of electronic practices ‘from the top down’ not just by Emirates airline, but also dnata, Customs and airports.
Many of e-freight’s gains to date have been achieved despite a turbulent world economy. Even traditional east-west one-way cargo flows no longer are a ‘given’ for world trade and airline yields are under continuing pressure not just from fluctuating customer demand, but also from growing aircraft belly hold capacity as airlines buy more economical and bigger aircraft.
“2011 and 2012 were tough, but we’re now seeing and predicting a better adoption of (e-cargo) technologies for 2013 and beyond,” said Vertannes.
Also, many of the former barriers to adoption are less of a problem now: “The industry is benefiting from wider adoption of the multi-lateral e-AWB, with forwarders investing in technology to meet demands by other stakeholders including Customs,” he said.
Terms such as harmonisation and convergence peppered e-cargo conversations at the conference.
It was as though – despite having quite some way to go and with significant barriers to 100 per cent adoption still ahead – the industry has accepted that e-freight in all its forms and guises is both a good thing and achievable. E-AWB alone was described by Vertannes as “steaming ahead” since April, particularly compared to levels one month earlier.
IATA also believes the future will bring changes to air cargo demand.
It won’t be all east-west traffic, with freighters flying empty on their way to pick up cargo. Neither will the current glut of services-based economies continue everywhere. IATA sees more migration to urban areas driving demand for airfreight and manufacturers returning to the market as an economic force.
“There will be more balanced demand,” IATA believes.
In the meantime, before the improved world economy can ‘do its bit’ to assist e-freight, IATA will use its own membership and partnerships with FIATA, GACAG and other bodies to help tear down the remaining barriers within airlines, governments and industry.
E-freight gathers global momentum
AirCargo Archive Stories #224
Monday, 01 July 2013
CRITICAL mass on e-freight is ‘closer’ but there still is a way to go, according to the International Air Transport Association (IATA), which held an e-cargo conference attended by 194 industry delegates June 19-20 in Geneva, writes Jack Handley.
On the plus side, said IATA global head of Cargo Des Vertannes, is the growing understanding among airlines and governments as well as private industry that e-freight is not simply about removing paper, it’s about making the freight administration process more efficient, more cost-effective and faster.
Also, he said, there are some ‘major hitters’ in the aviation world that are adding their weight to adoption of e-AWB and e-freight generally. These include Germany’s Lufthansa, Singapore Airlines, Hong Kong’s authorities and (among the most important of all, given the region’s growing dominance as a world trade hub), leaders in Dubai who are driving the adoption of electronic practices ‘from the top down’ not just by Emirates airline, but also dnata, Customs and airports.
Many of e-freight’s gains to date have been achieved despite a turbulent world economy. Even traditional east-west one-way cargo flows no longer are a ‘given’ for world trade and airline yields are under continuing pressure not just from fluctuating customer demand, but also from growing aircraft belly hold capacity as airlines buy more economical and bigger aircraft.
“2011 and 2012 were tough, but we’re now seeing and predicting a better adoption of (e-cargo) technologies for 2013 and beyond,” said Vertannes.
Also, many of the former barriers to adoption are less of a problem now: “The industry is benefiting from wider adoption of the multi-lateral e-AWB, with forwarders investing in technology to meet demands by other stakeholders including Customs,” he said.
Terms such as harmonisation and convergence peppered e-cargo conversations at the conference.
It was as though – despite having quite some way to go and with significant barriers to 100 per cent adoption still ahead – the industry has accepted that e-freight in all its forms and guises is both a good thing and achievable. E-AWB alone was described by Vertannes as “steaming ahead” since April, particularly compared to levels one month earlier.
IATA also believes the future will bring changes to air cargo demand.
It won’t be all east-west traffic, with freighters flying empty on their way to pick up cargo. Neither will the current glut of services-based economies continue everywhere. IATA sees more migration to urban areas driving demand for airfreight and manufacturers returning to the market as an economic force.
“There will be more balanced demand,” IATA believes.
In the meantime, before the improved world economy can ‘do its bit’ to assist e-freight, IATA will use its own membership and partnerships with FIATA, GACAG and other bodies to help tear down the remaining barriers within airlines, governments and industry.
