Multilateral e-AWB Agreement Sign Once, Connect All ! 1 Background The Air Waybill (AWB) is the contract of carriage between Airline and “Shipper” The e-Air Waybill (e-AWB) is an electronic cargo contract that replaces the paper AWB: Face of the paper AWB is replaced with electronic messages Reverse of the paper AWB is replaced with an e-AWB agreement 2 The e-AWB Agreement Face Reverse Paper Air Waybill e-AWB + Electronic messages 3 + e-AWB Agreement The “Bilateral” challenge In 2010, RP1670 “model EDI Agreement” was established, which enabled Airlines and Forwarders to do e-AWB Airlines and Freight Forwarders bilaterally signed the Agreement and started doing e-AWB As more Parties adopted e-AWB, the number of “bilateral” agreements increased exponentially Each Agreement needs to be reviewed by Legal, costing time and money for both Parties The burden of signing multitude of Agreements was found to be slowing down e-AWB adoption in the industry 4 Bilateral e-AWB Agreements (IATA RP 1670) The “Multilateral” solution IATA with the industry developed a “multilateral” e-AWB Agreement as new IATA Resolution 672 Parties will sign once with IATA enabling them to do e-AWB with all other Parties: MULTILATERAL AGREEMENT Airline with all participating Freight Forwarders Freight Forwarder with all Multilateral e-AWB Agreement (IATA Reso 672) participating Airlines 5 What does it contain? The Multilateral e-AWB Agreement provides the Legal framework for parties to conclude cargo contracts by electronic means It includes provisions for: the consent to do e-AWB the high level operational aspects for e-AWB the confidentiality and security of data the rights and obligations of parties It does not modify: the conditions of contract the conditions of carriage 6 How does it work? Step 1: Joining Airlines join the Agreement Freight Forwarders join the Agreement Step 2: Activation Airline and Freight Forwarder have bilateral discussions on locations and start dates Airline sends “Activation Notice” to Freight Forwarder confirming the bilaterally decided location(s) and dates Step 3: Start to do e-AWB 7 How to join? (1/2) Airlines: Airline signs the Airline Submission Form ONCE to join the IATA Multilateral e-AWB Agreement Airlines specify the Airports where they accept e-AWB Airlines can add or remove Airports as needed 8 How to join? (1/2) Freight Forwarders: Freight Forwarder signs the Multilateral e-AWB Agreement ONCE with IATA Freight Forwarder can also add its Affiliates to the Multilateral e- AWB Agreement Freight Forwarder can add or remove Affiliates as needed 9 Are we obliged to do e-AWB? Parties are NOT obliged to do e-AWB with each other Provides the Legal framework to do e-AWB without having to engage in hundreds of bilateral Legal discussions Agreement becomes effective as to an Airline and Freight Forwarder at a location upon Airline sending an “Activation Notice” to Freight Forwarder Participants can also de-activate a particular location or withdraw completely from the multilateral e-AWB agreement 10 What are the benefits? No more lengthy and costly Legal discussions to start e-AWB: Airlines will have a single agreement with IATA, enabling them to accept e-AWB from all participating Freight Forwarders Freight Forwarders will have a one-stop shop agreement that will allow them to tender e-AWB shipments to multiple airlines in numerous airports around the globe Parties still remain in control of where and when e-AWB should start depending on the technical and operational readiness 11 Has someone tested it? A group of Airlines and Freight Forwarders trialed the Multilateral e-AWB Agreement through a Proof of Concept exercise PoC participants (as of 4 April 2013): 15 Airlines: AF, BA, CX, DL, EK, IB, KL, LH, LX, LA, UC, QF, QT, LO, TK 9 Freight Forwarders: DGF, Kintetsu, Aramex, Rhenus, Logwin, Expeditors, SDV, Schenker, DSV 12 Timelines Oct 12 Dec 12 Nov 12 Jan 13 Mar 13 Feb 13 Apr 13 E-AWBAG Conf. Call FF, Airlines Sign up for Proof of Concept Proof of Concept (PoC) Trials PoC Recommendations to Resolution 672 & Process Automation CSC First Transmittal CSC webinar CBPP CPCMG Proof of Concept (PoC) Continued E-AWBAG Conf. Call CBPP CPCMG IFCC Endorsment IFCC CSC Adoption CBPP CPCMG E-AWBAG: E-AWB Advisory Group, CSC: Cargo Services Conference, IFCC: IATA/FIATA Consultative Council, 13 Management Group CBPP: Cargo Business Processes Panel, CPCMG: Cargo Procedures Conferences CSC Government approvals Process Automation History in the making When What November 2012 e-AWB Advisory Group endorses the First version The very first version of the Multilateral e-AWB Agreement was endorsed by the e-AWB Advisory Group (e-AWBAG) in November 2012. The e-AWBAG is comprised of airlines and freight forwarders actively involved in the e-AWB initiative. December 2012 Proof of Concept trials launched The draft Multilateral e-AWB Agreement was trailed by a group of Airlines and Freight Forwarders through a Proof of Concept (PoC) exercise in December 2012. January 2013 Enhanced version developed and endorsed Based on feedback received from the PoC participants, enhancements were made to the draft Multilateral e-AWB Agreement, which were endorsed by the e-AWB Advisory Group in January 2013. February 2013 FIATA-AFI endorses the Multilateral e-AWB Agreement The Agreement was then reviewed and endorsed by FIATA-AFI through the IATA/FIATA Consultative Council (IFCC) in February 2013 with some minor amendments. March 2013 CSC adopts Multilateral e-AWB Agreement as Resolution 672 The 35th Cargo Services Conference held in Doha on 10 March 2013, adopted the Final version of the Multilateral e-AWB Agreement as the new IATA Resolution 672. 14 When can we join? Airlines and Freight Forwarders can join the IATA Multilateral e-AWB Agreement now The Agreement will come into effect only upon Resolution 672 being declared effective by IATA (expected in the coming months) The joining procedures for Airlines and Freight Forwarders are provided here: www.iata.org/e-awb-multilateral If you have any questions about the Agreement or the joining procedures, please contact IATA Cargo at cargo@iata.org 15 More information www.iata.org/e-awb-multilateral Questions to: cargo@iata.org e-AWB on-line training http://www.iata.org/training/courses/pages/tcgp72.aspx 16