Since January 2019, when eAWB became the default contract of carriage for all air cargo shipments on approved trade channels, market penetration has been rapidly expanding. According to the latest data from the International Air Transport Association (IATA), eAWB penetration has reached 72.0 percent since its introduction in 2010.
Freight forwarders are adopting eAWB not only because it has become the de facto standard, but also because of the benefits it offers: increased productivity, reduced costs, improved customer service, and many more.
Using an airline to transport goods abroad requires up to 30 documents, which means a lot of paper to send and keep meticulous track of. Any disruptions in the process could result in significant delays. eAWB, which stands for electronic air waybill, is the solution to this problem. It is a data exchange mode introduced by IATA that is used in air transport. All versions of paper AWB between a shipper (freight forwarder) and a carrier are replaced by eAWB. If you want a more in-depth understanding of AWB, you can read our other blog post on the subject.
The Multilateral eAWB Agreement (MeA) establishes the legal foundation for parties to enter into cargo contracts electronically. As a result, freight forwarders will have a one-stop shop arrangement that will allow them to tender eAWB cargo to multiple airlines in a variety of airports throughout the world.
It is completely free to join. Take the following steps:
The primary role of eAWB is to exchange cargo status messages between a freight forwarder and an airline. To implement eAWB communications, freight forwarders, airlines, and ground handlers require diverse technical capabilities. The software used by a freight forwarder must execute at least the following critical eAWB functions:
You must use the Cargo-XML or Cargo-IMP formats to carry out these operations.
Check the data quality before beginning an eAWB exchange with the carrier. Because electronic messages delivered in eAWB format are actual documents, any issues must be resolved before the message is sent. The following are the most often encountered problems:
Message quality assurance is critical both during the planning stage and after eAWB implementation.
If you lack the engineering resources to create your own eAWB system using the Cargo-XML platform, you can use pre-existing ones.
Once the procedures have been confirmed, an airline will prepare an Activation Notice, which is a document that allows eAWB processes to take place between the parties. The airports, locations, and effective dates of shipments are listed in this document. The parties can begin exchanging e-AWBs as soon as a freight forwarder signs the Activation Notice.
The primary purpose of eAWB systems is to allow users to send data to airlines, retrieve messages, print them (if necessary), and update and track container status information. These solutions are web-based and easy to use. Some software solutions allow you to communicate shipment information to customers straight from the system. These solutions are available as stand-alone cloud-based applications, or as modules inside a freight forwarding software.
The rate of digitalization in the freight forwarding industry will only accelerate. The eAWB is not the only document needed in the shipping procedure; ISF and AMS are also required. Because digital document adoption is unavoidable, you may need to consider new system solutions for your company. Instead of paying for various systems to handle different types of documents, an all-in-one freight forwarding software like GoFreight can be used.
Feel free to contact GoFreight experts to learn more about how GoFreight can meet all your digitalization needs.