New collaboration to promote e-freight in Shanghai

by Payload Asia

The International Air Transport Association (IATA), Shanghai Customs, Shanghai Entry-Exit Inspection and Quarantine Bureau, Shanghai Airport Authority, China Eastern Airlines, and Shanghai E-port have signed a Letter of Initiative (LOI) to jointly promote e-Freight in Shanghai.

Under the terms of the LOI, the six organisations will cooperate to:

  • Improve efficiency and reduce costs in existing processes by phasing out the need for a security check stamp on paper air waybills 
  • Eliminate the need for paper air waybills and facilitate the implementation of paperless customs clearance at Shanghai Pudong Airport.
  • Optimise and streamline data sharing between the parties

“China is the second largest market for international freight by air. With much of the world’s manufacturing taking place in China, it is essential that processes are kept as efficient as possible. This can be achieved through partnership and adoption of global standards. This agreement will bolster Shanghai’s position as a leading air freight hub in China and in the world,” said Zhang Baojian, IATA’s regional vice president for North Asia.

The air cargo industry is well known for its paper-intensive processes. E-freight is a global initiative to modernise the air cargo industry and enhance efficiency by eliminating the pouch of over 20 documents that accompany every air cargo shipment. It will contribute to the industry’s goal of reducing shipping times by 48 hours.

Implementing e-air waybill is an important enabling step for e-freight. The industry target is to achieve 45 per cent e-air waybill penetration globally by the end of 2015, and 80 per cent by the end of 2016.

E-freight pilots have been implemented at Shanghai Pudong Airport, Guangzhou Baiyun Airport and Beijing Capital Airport. In June 2014, China Cargo Airlines successfully launched the pilot e-air waybill pilot at Shanghai Pudong Airport. To date, Shanghai is the leading airport in China in terms of the number of e-AWBs processed.

Shanghai Pudong Airport ranks third globally for cargo handled and is the gateway for over 60 per cent of China’s cargo throughput. In 2014, Shanghai Pudong Airport saw an 8 per cent increase in its cargo throughput.