The digitization initiative in air freight shipping industry encompasses various stakeholders such as carriers, air freight forwarders, ground handlers, shippers, customs brokers, and customs authorities. Its primary objective is to establish a fully digital transportation system for air cargo, eliminating the need for paper-based processes. This endeavour involves the development of a regulatory framework, utilization of electronic messages, and a strong emphasis on maintaining high-quality data throughout the entire supply chain.
In this blog post, we aim to emphasize the advantages that eAWB offers to the air freight shipping industry and advocate for its swift adoption throughout the industry.
What is e-AWB and how it can help the air freight shipping industry digitize its operations
Over the past few years, the air freight shipping industry has undergone remarkable advancements, largely influenced by technological innovations. These developments have revolutionized the transportation of goods, and among them, the electronic Air Waybill (eAWB) stands out as a significant breakthrough. IATA and numerous airline carriers have enthusiastically supported and endorsed the eAWB as the future of the airfreight sector.
The air freight sector relies heavily on the paper air waybill (AWB), a crucial document that establishes the contractual agreement between the forwarder or shipper and the airline or carrier. To keep up with technological advancements, an electronic version of the AWB, known as the e-AWB, has been introduced. IATA employs the term “e-AWB” to refer to the exchange of Electronic Data Interchange (EDI) messages or electronic data used to finalize carriage contracts. Essentially, the e-AWB serves as the digital equivalent of the paper AWB, aiming to minimize errors, streamline paperwork, reduce manual labor, and facilitate improved communication.
In simple terms, the e-AWB replaces the paper-based documentation traditionally exchanged between air freight forwarders and carriers. This includes a wide range of documents such as customs papers, commercial documents, transportation documents, and any other paperwork involved in the air freight process.
The best e-AWB platforms
If you lack the engineering resources to develop your own e-AWB system using the Cargo-XML platform, there are existing off-the-shelf solutions available for your use. These e-AWB systems primarily serve the purpose of allowing users to transmit data to airlines, receive and retrieve messages, print them if necessary, and update and shipment tracking status. These online platforms are designed to be user-friendly, making them preferable alternatives to EDI (Electronic Data Interchange). Some platforms even allow the air freight forwarders to send shipment details to customers via email. IATA has a list of partners who assist with e-AWB implementation and provide platforms and management systems for enterprises, as well as small and medium-sized freight forwarders.
Some of the best platforms for e-AWB implementations are, Riege Software, Boltrics, Magaya e-AWB, Descartes, and Smart AWB.
How to make Electronic Airway Bill work
To effectively implement the e-AWB, the air freight industry needs to address several key elements. One crucial aspect is ensuring clarity of the process. The implementation of the e-AWB is a major change for international air cargo service providers. However, implementing this is absolutely crucial since the elimination of paperwork results in a seamless workflow. Additionally, it helps you to easily keep track of the cargo’s route. The e-AWB implementation process consists of 4 steps:
Become a part of the IATA e-AWB agreement
The first step is to become a part of the Multilateral e-AWB Agreement (MeA). By signing this agreement, air freight forwarders can execute e-AWBs with all other parties involved in the agreement. It allows forwarders and carriers to establish a legally binding electronic agreement. Joining the agreement provides forwarders with a convenient one-stop-shop to submit e-AWB shipments to multiple airlines across major international airports. To join the agreement, follow these steps:
- Complete the form with your organization’s information.
- Sign the agreement electronically or in PDF format and send it to IATA.
- Once IATA signs the MeA, you will receive a copy, making you a member eligible to collaborate with other members. Importantly, joining the agreement is free of charge.
Ensure adequate tech support
The successful exchange of shipment status between the shipper, forwarder, ground handlers, and carriers relies on robust technological capabilities. Therefore, it is crucial to have suitable software capable of performing the following functions:
- Sending e-AWB messages
- Receiving notifications and flight status updates
- Archiving e-messages
- Enabling print-on-demand AWB
To carry out these operations, air freight companies should use Cargo-XML, the preferred standard for communication with carriers and other stakeholders in the process. However, the Cargo-XML toolkit is not available for free, and IATA charges a fee ranging from $999 to $4,995 for its use.
Check the quality of e-messages
Before initiating e-AWB exchanges, it is important to ensure the quality of the data transmitted. Remember that the online messages sent represent actual documents, and any flaws in their quality can lead to issues. Pay attention to the following aspects of your electronic messages:
- Validity of data
- Timely transmission of messages
- Accurate configuration of the cargo system, including message integration and print layout
- Syntax errors in the text
Ensuring the quality of messages is crucial both in the early stages and after the e-AWB implementation. The IATA Cargo-XML Auto Check Tool can be immensely helpful in this regard.
Activate the contract with partner carriers
The final step of e-AWB implementation involves confirming the willingness of both the shipper and the carrier. Start by activating the agreement with your airline partner. The partner airline will provide you with an Activation Notice, which allows for e-AWB processes between both parties. The notice will specify airport locations and effective shipment dates. After signing the Activation Notice, airfreight forwarders and their partner airlines can begin e-AWB exchanges.
By following these four steps, air cargo service providers can successfully implement the e-AWB and experience the benefits of streamlined operations and enhanced efficiency.