An electronic air waybill (eAWB) replaces paper documentation with a digitally transferable format, minimizing processing time and reducing errors from manual handling. Integrating eAWBs into freight management systems (FMS) unlocks new levels of efficiency and data accuracy, paramount for any modern freight enterprise.

A critical facet of integration involves ensuring seamless communication between the eAWB platform and the FMS. The goal is real-time data synchronization, allowing for instantaneous updates of shipment status, enhancing trackability and optimizing the supply chain’s transparency.

Benefits of eAWB integration

A modern freight management system equipped with eAWB capabilities offers unprecedented benefits. By mitigating the delays inherent in paper-based processes, the FMS increases speed and reliability in airfreight shipments. And by facilitating data exchange, a freight management system can enhance operational visibility, reducing unexpected costs or shipment complications.

Digitalization also facilitates regulatory compliance. EAWBs automatically adhere to international standards, ensuring consistent compliance across borders. In an industry where minor non-compliance can lead to substantial setbacks, this is invaluable.

The integration of eAWBs into freight management also marks a crucial step toward achieving a greener, more sustainable airfreight industry. Reducing paper uses can contribute significantly to environmental sustainability efforts.

Integration requires strategic planning and skilled execution. A well-integrated eAWB-enabled FMS can transform a business’s competitive positioning.

Integration challenges

Adherence to industry standards and interoperability between eAWBs and freight management systems is crucial to achieve successful integration. Standardized data formats — such as XML or EDI — enable seamless data exchange. Industry associations, technology providers and stakeholders must collaborate to establish common standards and ensure compatibility between different FMS solutions and eAWB platforms.

Integration also requires robust data validation mechanisms to ensure the accuracy and consistency of information exchanged between eAWBs and a freight management system. Automated validation checks can identify errors, preventing data inconsistencies and improving efficiency. It is essential to establish data quality control processes and implement validation rules.

In addition, integration should be scalable to accommodate growing business volumes and flexible enough to adapt to changing industry requirements. FMS platforms need to be capable of handling increased data traffic, processing speeds and expanding functionalities.

Integration also necessitates robust security measures to protect sensitive data. Encryption, secure data transmission protocols, and access control mechanisms are essential to maintain data integrity and confidentiality. Compliance with data privacy laws such as General Data Protection Regulation (GDPR) is paramount.

One notable advancement is the adoption and standardization of electronic air waybills, or eAWBs, an initiative that aims to replace paper-based documentation with electronic formats, facilitating seamless communication, improving data accuracy and fostering sustainability across the global air cargo supply chain.  

An air waybill is a critical document in air cargo operations, detailing the contract of carriage between shippers, freight forwarders and carriers. The electronic equivalent contains digital data elements with information such as shipper and consignee details, cargo description, routing and charges. The eAWB eliminates the need for physical documentation, enabling the electronic exchange of information between stakeholders, including freight forwarders, airlines, ground handlers, customs authorities and consignees. 

Benefits of eAWB adoption 

By eliminating physical paperwork, eAWBs streamline the air cargo process, reducing administrative burdens, minimizing errors and enhancing operational efficiency. The digital transmission of data enables real-time information sharing, which leads to improved visibility and tracking capabilities. 

In addition, eAWB adoption results in cost savings for the industry, as it eliminates the expenses associated with paper storage, printing, transportation and handling. Electronic air waybills also reduce the likelihood of delays and penalties due to errors or lost documents, further enhancing operational efficiency and cost effectiveness. 

Sustainability is another benefit to eAWBs, as the reduction in paper contributes to environmental sustainability; curtails deforestation; reduces carbon emissions associated with paper production, transportation and storage; and aligns with global initiatives for a greener air cargo industry. 

Electronic air waybills can also minimize data entry errors and discrepancies, as electronic data is automatically validated and verified at the point of input. Accurate and standardized data leads to improved cargo handling, reduced delays and enhanced customer satisfaction.  

Global adoption, standardization 

The International Air Transport Association (IATA spearheaded the eAWB initiative in 2010, establishing the e-AWB Multilateral Agreement as a contractual framework for airlines and freight forwarders. The agreement outlines the standard terms and conditions for eAWB implementation, allowing parties to exchange eAWBs without the need for individual bilateral agreements. 

The widespread adoption of eAWBs requires collaboration between stakeholders, including airlines, freight forwarders, customs authorities and technology providers. Industry associations, such as IATA and International Federation of Freight Forwarders Associations (FIATA), play a crucial role in facilitating cooperation, promoting awareness and encouraging standardization. 

Governments worldwide are progressively recognizing the benefits of eAWB adoption and implementing supportive regulatory frameworks. Customs authorities are adapting their processes to accommodate eAWBs, simplifying clearance procedures and enhancing border security through electronic data exchange. 

Challenges and the way forward 

Achieving global eAWB adoption necessitates robust technological infrastructure, including reliable internet connectivity and standardized data exchange formats. Investments in technology and interoperability are essential to overcoming the digital divide and ensuring seamless integration across the global air cargo supply chain. 

Continued collaboration between industry stakeholders is vital to drive eAWB adoption. Airlines, freight forwarders, ground handlers and customs authorities need to align their processes, exchange data seamlessly and implement standards to reap the full benefits of eAWB utilization. 

Raising awareness about eAWB benefits, best practices and implementation guidelines is crucial for widespread adoption. Industry associations, training institutes and technology providers should focus on educating stakeholders about the advantages of eAWBs and provide training programs to enhance digital literacy within the industry. 

Addressing legal and security concerns surrounding data privacy, authentication and digital threats is paramount to gaining stakeholders’ trust and ensuring a secure eAWB environment. Establishing robust cybersecurity protocols and compliance frameworks will help to foster confidence in eAWB adoption. 

While the airfreight industry is a major contributor to greenhouse gas emissions, stakeholders are working to lower carbon emissions produced by jet fuel. Aviation accounted for nearly 12% of carbon dioxide emissions from transport sources in 2021, according to Air Transport Action Group, but the industry is focused on achieving net zero carbon emissions by 2050. 

And while there are a number of ways to reduce the environmental impact of air cargo, one of the most effective is the use of eAWBs. 

Benefits of electronic air waybills 

EAWBs are paperless, and data is entered once and automatically transmitted to all parties involved in the shipment, reducing the risk of errors. This decreases the carbon footprint associated with paper production and transportation. 

EAWBs also are faster than paper AWBs because data is transmitted electronically, which results in shipments being processed faster and can help reduce transit times and improve overall delivery times.

Tighter security is another benefit of eAWBs, which are encrypted to protect data from unauthorized access. This is particularly important in the shipping industry, where there is a risk of cargo being lost or stolen.  

Global adoption, challenges of eAWBs 

Adoption of eAWBs is increasing worldwide, reaching 68.2% in May 2021, up from 55.9% in May 2020, according to IATA.  

The countries with the highest adoption rates are Hong Kong, Singapore and South Korea, with adoption rates of 95.5%, 91.1% and 89.8%, respectively. The United States has an adoption rate of 79.3%, while Europe clocks in at 53.8%.  

While the adoption of eAWBs is growing rapidly, challenges remain, including the need for standardization and protocols. 

The upfront costs of implementation — such as the cost of software, hardware and training — can be a barrier for some companies, particularly smaller ones. 

Read more about eAWBs: Setting the standard: Landing at 100% compliance on electronic air waybills

The International Air Transport Association (IATA) has introduced two types of air waybills: neutral air waybill (NAWB) and airline electronic (eAWB).

An NAWB is issued by a neutral party, such as a freight forwarder or consolidator, which acts as an agent for the shipper. The neutral air waybill does not bear the name of a specific airline.

An NAWB is a non-negotiable document used to transport goods from the origin airport to the destination airport. The shipper and consignee details — as well as the nature, quantity and value of the cargo — are mentioned in it. The document is signed by the shipper and the carrier, indicating that the carrier has received the cargo for shipment. An NAWB can be issued on paper or via electronic format.

NAWBs offer advantages over traditional air waybills. For example, they allow for the consolidation of shipments from multiple carriers or airlines, providing more flexibility and control of logistics. They also simplify documentation, as one document can be used for multiple shipments. Additionally, NAWBs can be used to facilitate the transfer of cargo between carriers or airlines, enabling efficiency and potentially reducing costs.

Potential drawbacks to using NAWBs include that they might be less secure than traditional air waybills, as they can be issued by multiple parties and may not be subject to the same security measures. Additionally, they could be subject to additional fees or surcharges if the neutral party issuing the NAWB must cover the costs of handling and processing the shipment.

Electronic air waybills

An electronic air waybill is a paperless document issued and transmitted between the shipper and the airline — a digital version of the traditional air waybill that has been used for decades in the air cargo industry.

An eAWB includes the same information as an NAWB, and is legally recognized and considered equivalent to a paper air waybill.

Potential drawbacks include connectivity issues, as eAWBs require a stable internet connection. There is also a lack of global standardization for electronic e-air waybills, which can lead to compatibility issues between different systems and carriers.

Read more about eAWBs: Setting the standard: Landing at 100% compliance on electronic air waybills

Transportation and logistics companies need to move goods quickly, efficiently and safely. In the world of air cargo, the e-air waybill makes that possible.

The digital version of the traditional air waybill — also known as an airway consignment note or dispatch note, e-air waybill or eAWB — is a document used in air cargo transactions that enables electronic data interchange (EDI) between parties, including shippers, airlines and freight forwarders.

Electronic air waybills increase transparency throughout the supply chain. All parties involved in a shipment have access to real-time tracking updates through automated systems that track shipments from start to finish. This means that cargo owners and logistics providers can easily monitor their shipments’ progress and take action if necessary.

The eAWB allows for the electronic exchange of information between parties involved in the shipment of goods, including shippers, consignees, airlines and freight forwarders. This technology has significantly streamlined the air cargo industry, reducing paper usage, improving efficiency, and increasing data accuracy and security.

Digitalizing air cargo documentation

The history of the eAWB dates to the early 2000s, when the International Air Transport Association (IATA) began exploring ways to digitalize the air cargo documentation process.

In 2010, IATA launched its e-Freight initiative, which aimed to digitalize the entire air cargo supply chain. As part of this initiative, IATA developed the eAWB standard, designed to replace the paper air waybill with an electronic version.

By 2014, it had been adopted by more than 50 airlines worldwide.

In 2016, IATA set a target for the air cargo industry to achieve 50% eAWB penetration by the end of the year. This target was met, and by 2020 eAWB penetration had reached 68.8%.

Adoption of eAWB has continued to accelerate, with the pandemic driving further digitalization of the industry. E-air waybills have become a critical tool for ensuring the smooth flow of essential goods and medical supplies during the pandemic.

As of November 2022, IATA reported that more than 85% of the air cargo transport industry was using eAWB tracking.

IATA has set a goal of achieving 100% eAWB adoption by 2025.

E-air waybill tracking systems

When it comes to tracking e-air waybills, there are different types of systems available. The type selected depends on the level of detail required by the user.

Basic e-air waybill tracking allows users to track their shipment from origin to destination, offering information about when the package was shipped, where it is located, and the estimated delivery date.

Advanced eAWB tracking provides more detailed information on a shipment’s status, including real-time updates on location and expected arrival time. Advanced tracking may also include alerts for delays or changes in route.

For those requiring even greater visibility into their shipments, custom e-air waybill tracking solutions can be tailored to specific needs. These solutions may include features such as temperature monitoring or security measures.