The International Air Transport Association wants to break free from outdated processes that hold air cargo back and has adopted a resolution that it believes will accelerate the modernization of this industry.
The International Air Transport Association (IATA) wants to break free from outdated processes that hold air cargo back and has adopted a resolution that it believes will accelerate the modernization of this beleaguered industry.
The association said the resolution “builds on the momentum” from the recent entry into force of the World Trade Organization’s Trade Facilitation Agreement (TFA).
“The TFA commits governments to making trade faster, cheaper and more efficient. Air cargo processes are stuck in another century, said Alexandre de Juniac, IATA’s director general and CEO, in June 5 statement.
“To ensure that air cargo is ready to benefit from the expected $1 trillion boost in trade growth arising from the TFA and the improving global economic environment, we need a major overhaul of industry processes,” he added. “And there is no time to lose; our customers already expect the efficiency of electronic documentation.”
Unlike the highly integrated express carriers, the general air cargo industry has continued to struggle with disparate systems and continued use of cumbersome documentation due to the numerous handoffs of cargo and information between shippers, freight forwarders and airlines.
IATA’s air cargo resolution calls for fully implementing a digitized supply chain to “allow all information to be shared instantly, improving efficiency and simplifying the transport process.” It also encourages the adoption of “modern and harmonized standards that facilitate safe, secure and efficient operations, particularly in relation to carriage of dangerous goods.”
In addition, the resolution calls on the “use enhanced technology to provide customers with responsive services based on intelligent systems able to self-monitor, send real-time alerts and respond to deviation.”
IATA’s air cargo resolution requests foreign governments to step forward to support the industry’s modernization by rapidly implementing TFA in order that its “substantial benefits such as harmonized rules for expediting the movement, release and clearance of goods crossing borders and the acceptance of e-payments and electronic documentation can be realized.”
These initiatives are also part of IATA’s program, Simplifying the Business (StB) Cargo.
“The time is right for change,” de Juniac said. “After several years of virtually no growth, air cargo demand is starting to pick up. We are also seeing new business opportunities with internet commerce and the global distribution of time and temperature sensitive cargo, especially pharmaceutical products.”
According to IATA, the airlines transported 52 million metric tons of goods in 2016, representing more than 35 percent of global trade by value, or $6.4 trillion worth of goods annually. Air cargo also generates revenues for airlines of more than $50 billion a year.
IATA: Air cargo ‘stuck in another century’
