The International Air Transport Association (IATA) has signed a Letter of Initiative (LOI) with Shanghai Customs, Shanghai Entry-Exit Inspection and Quarantine Bureau, Shanghai Airport Authority, China Eastern Airlines, and Shanghai E-port to boost e-Freight in Shanghai, China.
The organisations have decided to co-operate to eliminate the use of paper air waybills (AWB) and implement paperless custom clearance at Shanghai Pudong Airport.
The parties aim to improve the efficiency of the existing processes by optimising and streamlining data sharing between the parties. The initiative also intends to bring down the costs by getting rid of the security check stamp on the paper AWBs.
IATA regional vice president for North Asia Zhang Baojian said: "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."
China has already launched test initiatives for e-Freight at Shanghai Pudong Airport, Guangzhou Baiyun Airport and Beijing Capital Airport.
In June 2014, China Cargo Airlines had started e-air waybill pilot at Shanghai Pudong Airport, which ranks third in the world for the volume of cargo handled and is the gateway for more than 60% of the country's cargo throughput.
The airport recorded an 8% increase in its cargo throughput in 2014, and is leading among the Chinese airports, in terms of the number of processed e-AWBs.
The initiative to promote e-freight in order to eliminate the paper-intensive air-cargo process is expected to enhance the efficiency of the transportation system. It will also be able to reduce shipping times by 48 hours, IATA said.
Air cargo industry aims for 45% e-AWB penetration globally by the end of this year, which is expected to go up to 80% by the end of 2016.
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