IATA says governments have vital role to play in implementing standards worldwide

Cargo connectivity is crucial

An IATA study has identified that an increase in air cargo connectivity can have a dramatic impact on a country’s global trade.

The study concluded that a 1% increase in a country’s air cargo connectivity was associated with a 6.3% increase in trade.

Brian Pearce, Chief Economist at IATA, said: “Air cargo is key in supporting the current global trading system.

“In 2015, airlines transported 52.2 metric tonnes of goods, representing 35% of global trade by value. That is equivalent to US $5.6 trillion worth of goods annually, or US $15.3 billion worth of goods every day.

“We now have quantitative evidence of the important link between air cargo connectivity and trade competitiveness.”

Glyn Hughes, IATA’s Global Head of Cargo, added: “Facilitating trade with efficient air cargo processes requires a strong partnership between governments and industry.

“Governments have the important role of implementing global standards and agreements to facilitate trade and make it possible for airlines to modernize processes.”

Modernization priorities identified in the study fall into two categories:

Legislative priorities:

• The implementation of the 1999 Montreal Convention to enable countries to adopt e-freight
• The implementation of the World Trade Organization (WTO) Trade Facilitation Agreement and World Customs Organization (WCO) revised Kyoto Convention to implement smart border solutions that reduce complexity and costs

Practical industry priorities:

• Facilitation of electronic processing, through electronic Air Waybills (e-AWB) and e-freight
• Implementation by governments of “single window” processing - ultimately enabling submission of all regulatory documents for trade via one channel
• Co-ordination of border agency procedures to reduce duplicative controls
• Implementation of risk management controls at borders to combat illicit activities and facilitate compliant traders
• Implementation of processes to approve release of shipments in advance of their actual arrival