Australia Slow to Take Up Paperless Trading

In 2016, more than 50% of the global air trade relied on paper-based processes. An airfreight shipment can generate up to 30 different paper documents, and many of the processes, such as track & trace, still depend on human intervention.
“e-Freight,” initiated by IATA in 2006, is a program that aims to build an end-to-end paperless transportation process for the industry involving carriers, freight forwarders, ground handlers, shippers, Customs brokers and Customs authorities.

At an IATA workshop in Sydney this week it was reported that in both Australia and New Zealand the take up has been much less than in other parts of the world. The feedback from forwarders attending the workshop, however, was positive towards the use of e-AWBs and most already have the technology to handle them. The main stumbling block to greater utilisation in Australia is a reluctance by the carriers to accommodate e-AWBs. In other countries, the national carrier has often led the way, with other carriers then following on. But here in Australia, despite constant approaches by the industry to Qantas and other airlines, the carriers have chosen to maintain the status quo, citing a (perceived) threat of loss of market share if they move away from paper-based documentation.

Cathay Pacific seems to be leading the way and has mandated use of e-AWB throughout their network – they are already at 95% penetration. Our industry body, the Australian Federation of International Forwarders (AFIF) believes e-AWB is a ‘no-brainer’ for industry, and that the airlines should join their counterparts in other countries in going paperless. Together with IATA they will continue lobbying the carriers and say it is time for Australia to ‘get with the program.’