E-Freight: An Unique Initiative That Can Completely Trasform The Air Cargo Industry

Abstract

This paper examines the effects and benefits of E-Freight, an unique initiative introduced by IATA on the air cargo supply chain network. This industry wide program originally initiated in 2007 aims to entirely replace the need for paper based documentation with electronic messages. This initiative facilitates the easy movement of cargo by air which can save the supply chain from billions of dollars and also offers a more ecofriendly alternative to the traditional air cargo shipments. Traditionally, the air cargo industry have extensively relied on the paper-based processes, and movement of the documents between the members of air cargo supply chain members right from the consignee to the consignor. These traditional paper-based processes are expensive and does not address the immediate need for security and speed which are the key characteristics of air cargo. E-freight assures to bring about significant benefits in terms of quality, cost savings, speed, quality, and regulatory advantage. However, despite these benefits, the high complexity involved in air cargo supply chains makes implementing this initiative extremely challenging and sophisticated for all the stakeholders involved in the supply chain. For this research, we have included a case study and also collected data from relevant journal articles in order to provide a deeper understanding into the challenges and benefits for countries to implement this initiative.