Paper 8: Cargo Operations and Management Module 27: E- Cargo Initiatives THE DEVELOPMENT TEAM Principal Investigator Prof. S. P. Bansal Vice Chancellor, Indira Gandhi University, Rewari Co-Principal Investigator Dr. Prashant K. Gautam Director, UIHTM, Panjab University, Chandigarh Paper Coordinator Prof. S. P. Bansal Vice Chancellor, Indira Gandhi University, Rewari Paper Co-Coordinator Dr. Amit Katoch Assistant Professor, UIHTM, Panjab University, Chandigarh Content Writer Mr. Surender Kumar Head, Deptt. of Tourism, Government, PG, College Dharamshala, HP (India) Content Reviewer Prof. S. Kabia Chairman, Institute of Tourism and Hotel Management, Bundelkhand University, Jhansi ITEMS DESCRIPTION OF MODULE Subject Name Tourism and Hospitality Paper Name Cargo Operations and Management Module No. 27 Module Title E-Cargo Initiatives Objectives To study the concept of e-cargo initiatives. Keywords e-cargo, E-Airway will, IATA, TABLE OF CONTENTS 1. Outcome of Learning 2. Introduction 3. Automation in documentation 4. Airway bill (AWB) 4.1 Main functions of Airway Bill 5. Cargo delivery process 6. E-Commerce 8. E-fright/e-cargo 9. Benefit of e-cargo initiatives 10. Difference between traditional process and Chicago process 11. Important components of e freight initiatives 12. Summary QUADRANT I E-Cargo Initiatives 1. Outcome of Learning This module will help students to: i. Understand the concept of e-commerce ii. Classify various types of e-cargo initiatives. iii. Understand the Benefits of IT in air cargo operations iv. Learn the latest e-cargo initiatives. https://www.mercator.com/hubfs/Blog_Images/C2K-Increasing-Air-Cargo-Visibility-from- Airport-to-Airport_Blog.png 2. Introduction: Air freight is expected to become the most important booking process in air cargo industry. Freight forwarders are using air freight services for transferring the cargo. At the present time the international air freight services required more than 40 different types of paper documents and which leave more than 8000 tons of paper documents. The main goal of e-freight services is to eliminate the use of paper from air cargo supply chain and replace it with the electronic messaging and booking system which is more economically reliable. This is a vital operation which involves all stakeholders of air cargo industry such as freight forwarders, ground handlers, shippers, Airlines, customers and custom and excise authorities in this process. The present target of Fighter is to achieve 15% e-airway will uses globally and to expand the uses of E-Airway will globally. The ultimate aim is to reach 100% uses of electronic systems in the air cargo operations. http://slideplayer.com/slide/9347409/28/images/4/E-freight+is+an+e-initiative.jpg This concept was started by information technology and it is now an industry wide initiative and all stakeholders are responsible for the uses of Technologies. This approach is international in scope and all the countries are required to work in accordance to achieve hundred percent e- cargo operations. The e-cargo initiatives has many benefits such as lower costs, Annual saving in billions for the industry, and ability to accelerate supply chain transit Times buy 24 hours. The e-cargo initiatives also benefit in the reduction of delay that is caused by inaccurate or inconsistent data entry or delay caused by missing paper documents. With the help of e-cargo initiatives the traditional paper based documentation work will be eliminated and the record keeping will become safer and easily accessible. As the air cargo industry becomes more constrained by compliance issues, E-cargo initiatives will be able to offer regulatory compliance and meet all guidelines at both International and local level related to the documentation and data entry required by customs and other regulatory authorities. It is one of the biggest projects at the present time in the airline industries and hence the challenges are also big. The main issue in the freight forwarding operations is the lack of IT Solutions for the small and medium-sized service providers. The medium sized service providers lack in IT Solutions because they don't have money and resources to invest in e-cargo initiatives. The cost of investment is high and the lack of financial incentives is a major issue for the small and medium-sized service providers. There are also many political and legal considerations that must be addressed to ensure Global participation of all stakeholders in e- cargo initiatives. http://www.intactautomation.com/admin/js/plugins/kcfinder-master/upload/files/10-Top-Digital- Marketing-Automation-Tools.jpg 3. Automation in documentation: Document automation is a design of systems which helps in creation of electronic documents for the cargo operations. This system includes logic based system that use segments of pre-existing texts and data to assemble a new document. This process is used very frequently within certain industries to assemble their contracts and legal documents. The air cargo industry also uses this system for their documentation. This system can also be used for automation of existing text, variable text and data within a set of documents. The automation system allows companies to minimize data entry, reduce the risks associated with humans, and speeding proofreading and feeding of data. The automation system also has benefits like time saving, financial savings due to decreased paper handling, document loading, distribution storage, postage, shipping, faxes labor, telephone and wastage of material. The basic function in automation is to replace the traditional manual filling operation with new software and data entry systems in which machines are used for the data entry and human integration is less required. The information collected is then stored in a system and this information is easy for access. The present automation systems which are advanced in technology allows user to create their own data and rules without the need of the programming systems. The document automation system was primarily used in financial services and legal services but it can be used in any industry that creates transaction based documents. The air cargo industry is another such industry which can use document automation system for the better functioning of the industry. https://c2.staticflickr.com/6/5061/5868632862_6001016418_b.jpg 4. Airway bill (AWB): The airway bill is a receipt issued by an airline for cargo and it acts as an evidence of the contract of carriage of material. The airway bill is the most important document in cargo operations and it is issued by the cargo carrier either directly or through its authorized agent. Airway bill is a non-negotiable transport document and it covers transport of cargo from airport to airport. An IATA cargo agent acts on the behalf of carriers whose airway bill is issued by agent after accepting the shipment. For making bookings, checking Status of delivery and current position of shipment airway bill has 11 digit numbers which is used for this. Airway bills are issued in 8 different sets of colours in which first three copies are classified as originals. The first original copy is green in colour and it is the copy of issuing career. The second copy is pink in colour and it is consignee's copy. The 3rd copy is blue in colour and it is shippers copy. The first copy is brown in colour and it is a delivery receipt or proof of delivery. The other three copies of airway bill or white in colour. https://image.slidesharecdn.com/airwaybillesk-120716074349-phpapp02/95/air-way-bill-esk-1- 728.jpg?cb=1342425015 4.1.Main functions of airway bill: Airway bill is a document for contract of carriage. Within original airway bill there are conditions for contract of carriage. The airway bill is an evidence of receipt of items, goods and materials. When the shipper delivers items to the forwarders they will get a receipt from the freight forwarder. This receipt is a proof that the shipment was handed over in a good condition as per the instructions of the shipper and the material is accepted for the transfer. After the completion one copy of airway bill is handed over to the shipper as evidence of the acceptance of the goods and as a proof of contract of carriage between shipper and sender. The airway bill is also used as bill or invoice with the help of supporting documents as it shows the charges which are to be paid by the consignee and the charges pending to the agent of carrier. The original copy of airway bill is always used by the carrier for record keeping. The airway bill also acts as a document or certificate of insurance. The airway will serves as evidence that the career is in a position to insure the shipment and is requested to transfer the shipment. Airway bill is important for the custom declaration, the custom authorities requires various document like packing list, invoice etc. but still airway bill is a proof of the amount charged for the goods by carrier and maybe needed to be presented for the custom clearance at the destination country. The format of airway bill is designed by IATA and this format is used for both International and Domestic transportation. The airway bill is available in two forms one with the logo of airline and another one is neutral airway bill. The Airway will shows logo of airline, Carriers name, address of head office and eleven digit airway bill numbers which is preprinted on the airway will. Airway bills are now completed through the computerized systems and the agents all over the world are using their own in-house computer system to issue airlines and freight forwarders airway bill. Sometimes it is difficult to accommodate pre-printed and numbered airway bills so the use of neutral airway bills is also increasing.