Forwarders using effective data capture and validation have competitive edge

• Airfreight is becoming increasingly data-driven, with customs and security declarations requiring more detailed information earlier in the supply chain. So what is giving forwarders the competitive edge in this field?
• According to Simon Adams, Program Manager at Agency Sector Management (UK) it is a forwarders ability to capture information once and validate it automatically so that i can be used throughout the shipment journey.
• “A lot of the information that is required originates with shippers, suppliers and manufacturers, and data is often incomplete, inconsistent or received too late. Forwarders are therefore spending significant effort validating commodity descriptions, tariff classifications, consignee information and security-related data before submission. Poor quality data creates compliance risks and can also lead to delays, additional inspections and increased operational costs,” Adams explained.

Airfreight is becoming increasingly data-driven, with customs and security declarations requiring more detailed information earlier in the supply chain. So what is giving forwarders the competitive edge in this field?

According to Simon Adams, Program Manager at Agency Sector Management (UK) it is a forwarders ability to capture information once and validate it automatically so that i can be used throughout the shipment journey.

“A lot of the information that is required originates with shippers, suppliers and manufacturers, and data is often incomplete, inconsistent or received too late. Forwarders are therefore spending significant effort validating commodity descriptions, tariff classifications, consignee information and security-related data before submission. Poor quality data creates compliance risks and can also lead to delays, additional inspections and increased operational costs,” Adams explained.

“The forwarders that are succeeding are building processes and implementing technologies that allow them to capture information once, validate it automatically and reuse it throughout the shipment journey. As regulatory requirements continue to evolve, the ability to manage high-quality data efficiently will become just as important as the physical movement of cargo itself.”

ICS2 and integration

ICS2, the EU’s Import Control System 2, is a customs security system that requires information about goods before they reach Europe. It works like advance passenger information for cargo: just as airlines send passport details before passengers board, carriers and forwarders must send details of shipments before they travel.

For air cargo, a basic set of data, known as pre-loading advance cargo information (PLACI), must be filed before goods are loaded onto an EU-bound aircraft. A complete Entry Summary Declaration, including a clear description of the goods, the shipper and the recipient, must follow before arrival. EU customs use this data to identify threats earlier and intervene before goods reach the border.

ICS2 has fundamentally changed the importance of accurate pre-arrival data in air cargo. So how can data integration help, and what are the current challenges to this?

“Getting detailed accurate data from the customer, at commodity level, at the time of booking remains a huge challenge not just for air cargo. All modes are affected both for export and import, with similar item level requirements within transit (NCTS) and S&S (GB),” Adams highlighted.

“Many forwarders use several, best of breed applications that perform best in their sphere, rather than a single monolithic one. So, sharing data across these platforms is essential. Data needs to flow along the supply chain, not necessarily into one central point.”

Automation and manual intervention

Despite advances in automation, it does not appear likely that manual intervention will become obselete any time doon. But, there are key time savings that can be made through better processes.

“Providing complete, accurate data when it’s required can help prevent unnecessary problems. Manual intervention is always going to happen at times, but getting the data right first time can reduce friction and confusion and reduce the number of interventions,” Adams outlined.

“By using automation to capture and structure data, whether by ingesting information already available earlier in the supply chain or through intelligent document processing. This frees up valuable resources to focus on the areas where human judgement adds the greatest value, including compliance reviews, sanity checks, and the investigation of discrepancies or anomalies.”

Looking ahead

Data quality is becoming as important as physical cargo handling, what should airlines, forwarders and their customers be doing now to improve the quality and consistency of shipment data at source?

“In a word, integration. Capture as much data as possible, as close to source as possible and check it thoroughly as soon as it’s received. Then make sure that data is passed along the supply chain,” Adams concluded.