Standards for an Emerging Air Cargo Market

Air Cargo India 2008

Mumbai, 23-25 January 2008

Aleks Popovich, Global Head Cargo, IATA

India: as an emerging air cargo market will be successful….IATA International Freight Forecast

Top 10 growth countries by average annual growth rate: 2007 – 2011

(From Top 30 countries based on 2006 volume)

…. IF: we deliver standards to ease doing business!The World Bank Group

Ease of doing business index 2008

http://www.doingbusiness.org/EconomyRankings

IATA International Freight Forecast

Top 10 growth countries by average annual growth rate: 2007 – 2011

(From Top 30 countries based on 2006 volume)

Customers need:

•More speed

•Less cost

•More consistency

So IATA delivers:

•e-freight

•Cargo 2000

•Common Solutions (CASS, ULD)

Regulators expect:

•Safety

•Security

•Environment

So IATA delivers:

•Safety for Air Cargo

•Secure Freight

•Environment action for air cargo

IATA Cargo Agenda: All about standards

e-freight:e-freight: What is it?What is it?

e-freight is Paper-Free:No need to transport paper with the freight

e-freight is Challenging:e-freight =

e-ticket + e-passport

for customers who can’t walk or talk

e-freight is Simplicity:Simplified freight process plus electronic messaging

e-freight:e-freight: Why do it?Why do it?

Cost:Take the paper out of the supply chain

Time: Reduced freight “wait time”

Consistency:Via one One Quality Management System

Visibility: Quality electronic messaging for tracking status of freight

Live Pilots in 6 locations and 20 connecting routes

Hong Kong, Singapore, UK, Netherlands, Canada, Sweden

e-freight:e-freight: Where is it?Where is it?

7 airlines

Also:

9 GHA

11 Customs & Government Bodies

Cargo 2000

6 industry associations

7 forwarders

..

Shippers

Export Customs

Import Customs

OriginFreight Forwarders

Origin-Destination Airports

Consignees

Removing3 Documentsby Scanning.26% volume

Removing 4 Documents byElectronic Messages.10% by volume

Removing3 Documentsby Electronic Messages32% by volume

DestinationFreight Forwarders

Removing3 Documentsby Electronic Messages32% by volume

How e-freight takes the paper outOne standard e-freight operating process

13 Documents removed: 50-60% of the paper13 Documents removed: 50-60% of the paper

e-freight: What next?

Secure the pilots: Increase the capability Increase the participation Define document standards Fully operational by end 2008

Increase the locations: Must fulfill set criteria Detailed assessments 8 more locations in 2008

High Level Criteria:

(1) MP4 or MC99 ratified?:

(2) e-Customs modernization?:

(3) WCO Letter of Intent?:

High Level Criteria: INDIA

(1) MP4 or MC99 ratified?: NO

(2) e-Customs modernization?: YES?

(3) WCO Letter of Intent?: YES`

CASS: 2003-2007The Industry Billing and Settlement Standard

Growth accelerates - Defaults hold

% Defaults

New

CASS

Countries

30

35

40

45

50

55

60

65

70

75

2002 2003 2004 2005 2006 2007

0.000%

0.005%

0.010%

0.015%

0.020%

0.025%

New CASS 2008: Fill the big gaps

2008 Candidates

(with position in international export league table)

Export

Import

Domestic

France, Australia, Canada, Chile

USA, China, Brazil

Chinese Taipei (10), India (14), Colombia (32), Pakistan (38),

Vietnam (41), Sri Lanka (45), Israel (47),

The Promise:

India as respected innovative leader in World Trade!

Integration with rest of world and rest of country

Profitable growth exceeding market expectations

The Vision:

Pressure on “infrastructure” as the chosen approach

Cargo Hub(s)

IATA Cargo in Emerging Markets Series: India Dec 06

Can India Fulfill its Promise?

Fulfill the Promise!: Translate Strategy into Action

“If any suggestions from IATA, we are open to dialogue. For India – Cargo cannot be left out”

India Industry Action Group

(Government, Commerce, Customs Administration, Supply Chain)

Agenda

Voice of Customer

Industry Awareness, Education, Training

Accelerate e-freight

Accelerate Global Industry Standards

Security, Safety, Cargo 2000, Shared Services

India Industry Action Group

(Government, Commerce, Customs Administration, Supply Chain)

Progress

Key specific areas for action highlighted:

Airport Facilities / Congestion, Fuel, Process, Regulatory, Security, Training

Government and Customs dialogue established.

Actions progressed:

Tackling transshipment uncertainties at Indian airports

Development of air freight stations for better handling and movement

To register:To register:

http://www.iata.org/events/wcs08