Researchers estimated there are about 0.17 billion air cargo shipments each year in the United States that could benefit from Electronic Supply Chain Manifest (ESCM). With potential cost saving benefits ranging from $11.77 to $16.20 per air-freight shipment, ESCM could save the freight industry more than $2 billion per year.
Date Posted
11/26/2008
Identifier
2008-B00567
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Electronic Supply Chain Manifest Benefit Calculations - Revised December 2005

Summary Information

In support of the Office of the Secretary of Transportation, the Federal Aviation Administration (FAA), the FHWA Office of Freight Management and Operations, and others, the ATA Foundation led the development of a pubic-private partnership to develop and test the first operational electronic air cargo manifest and security system in the United States. The goal of this test was to demonstrate the improvements in efficiency and security of an Internet-based electronic air cargo security system compared to traditional processes and paper-based manifest systems. The operational test was conducted in conjunction with manufacturing, trucking, and airline participants in the Chicago-O’Hare International Airport and New York City-JFK International Airport service areas.

RESULTS

The U.S. DOT evaluated a Web-based Electronic Supply Chain Manifest (ESCM) system and compared its performance with a traditional paper-based manifest system. ESCM delivered labor cost savings and time-on-task reductions in manifest preparation, paperwork handling, communications between partners, and actual load transfer times.
  • Manufacturers reportedly saved more than 6 minutes per shipment, trucking companies saved more than 15 minutes per shipment, and airlines saved almost 12 minutes per shipment.
  • With potential cost saving benefits ranging from $11.77 to $16.20 per air-freight shipment, ESCM could save the freight industry more than $2 billion per year.
Given the relatively small size of most air freight shipments (compared to truckload highway shipments) the cost savings to air carriers is meaningful.
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