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Multilateral e-AWB Agreement

Sign Once, Connect All !

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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

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Face Reverse

Electronic messages e-AWBAgreement

+

+e-AWB

Paper Air Waybill

The e-AWB Agreement

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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

Bilateral e-AWB Agreements

(IATA RP 1670)

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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:

Airline with all participating Freight Forwarders

Freight Forwarder with all participating Airlines Multilateral e-AWB Agreement

(IATA Reso 672)

MULTILATERALAGREEMENT

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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

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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

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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

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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

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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

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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

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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

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Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13

IFCC

FF, AirlinesSign up for

Proof of Concept

Oct 12

CSC

PoC Recommendationsto Resolution 672 & Process Automation

CBPPCPCMG

CBPPCPCMG

CSC webinar

IFCC Endors-ment

CSC Adoption

CBPP CPCMG

E-AWBAGConf. Call

E-AWBAGConf. Call

Governmentapprovals

Proof of Concept (PoC) Trials

Process Automation

CSC First Transmittal

Proof of Concept (PoC)Continued

E-AWBAG: E-AWB Advisory Group, CSC: Cargo Services Conference, IFCC: IATA/FIATA Consultative Council, CBPP: Cargo Business Processes Panel, CPCMG: Cargo Procedures Conferences Management Group

Timelines

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History in the makingWhen What

November 2012 e-AWB Advisory Group endorses the First versionThe 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 launchedThe 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 AgreementThe 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 672The 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.

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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

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More informationwww.iata.org/e-awb-multilateral

Questions to: cargo@iata.org

e-AWB on-line training http://www.iata.org/training/courses/pages/tcgp72.aspx