Automating Air Cargo: Is it Possible to Eliminate the Paper From Airfreight Transactions While Still Keeping Cargo Secure?

This article examines some of the obstacles to implementing the same electronic data tracking for international air freight that is used for air passengers. Security concerns, which require that each piece of cargo have a document proving that it originates from a “known shipper,” are the key barrier. However, electronic tracking of freight has the potential to reduce waste and delays and errors caused by manual paper-based systems and, ultimately, provide better records of a shipment’s trail. Major integrators like UPS and FedEx are nearly entirely electronic, but that is because they handle a shipment at every step of its journey. The International Air Transport Association (IATA) is conducting a pilot project for e-freight that covers roughly 10 percent of the cargo carried by select airlines on routes connecting Canada, Hong Kong, the Netherlands, Singapore, Sweden and the U.K. Freight on these flights is traveling without 12 of the 13 documents that are normally required. In February 2007, Alaska Airlines eliminated paper airway bills where possible and now uses handheld scanners. The IATA surveyed 209 locations worldwide and found that fewer than 25 percent had the IT capabilities to go electronic by 2010. Still, the IATA is seeking implementation by then.