Cho explained. “It is important to lower logistics costs for international trading companies by building an integrated and standardized global logistic system. With lower costs, international trading companies will be able to strengthen their competitiveness, bolster international trade and enhance the global economy.”
Cho has been part of the B20’s ‘Trade and Investment’ Working Group, convening with other business leaders from around the world at the B20, an adjunct to the G20 Summit that is designed to strengthen worldwide financial cooperation.
Cho showcased IATA’s e-freight project as a global success story: a worldwide air cargo system that simplifies transportation processes through standardized electronic data-exchange between businesses, airlines, airports and customs departments. “To facilitate trade, this kind of effort should not be restricted to air transport but needs to be expanded to sea and surface,” Cho commented.
IATA introduced its e-freight system in 2004. Chairman Cho, as a member of the IATA Board of Governors, adopted it for Korean Air in 2008 and has promoted its use to other global airlines ever since. IATA predicts a savings of from $3.1 billion to $4.9 billion in logistics costs per year if each international trading company adopted the e-freight system. So far 384 airports, 33 carriers, 1650 forwarders in 44 countries have joined in this e-freight initiative.
◇ About the Business Summit (B20) The Business Summit (B20) is part of and held concomitantly with the G20 Summit: its main purpose consists in developing recommendations and gaining commitments from worldwide business leaders and business organizations. The B20 is organized around twelve topics crucial to the global business community and that are priorities for the G20 Summit. Presidents of business confederations of the G20 countries have been working together in 12 working groups. Their recommendations will be taken into account during the G20 Summit.
◇ About IATA’s ‘e-freight’ Project IATA’s e-freight aims to take the paper out of the air cargo supply chain and replace it with less expensive and more accurate electronic messaging. Introduced by IATA in 2004, the project is an industry-wide initiative involving carriers, freight forwarders, ground handlers, shippers and customs authorities.