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19 Feb 2011

Cargo 2000 iQ

Cargo 2000 (C2K) --> now relaunched as Cargo iQ
Cargo 2000 (or: C2K, now relaunched as Cargo iQ, see below) is a self-funded, IATA sponsored interest group of major airlines and freight forwarders.  Cargo 2000 is an industry initiative aiming at implementing a new quality management system for the worldwide air cargo industry.  The objective is simple: to implement processes, backed by quality standards, which are measurable to improve the efficiency of air cargo.

Cargo 2000 re-engineers the air cargo transportation scheme from shipper to consignee. Individual processes in the door-to-door air cargo supply chain are reduced from 40 to just 19, cutting down on operational costs and enhancing customer service: export forwarding is divided in 7 steps, air transport and handling also in 7 steps, and import forwarding in 5 steps.  By means of electronic data interchange (EDI) between the parties, each step is kept track of.  These steps are called milestones.  A milestone is reached if a number of conditions (depending per step) is fulfilled.

For example, for air transport the seven milestones are:

  • FWB =  the shipment is booked at the airline, next an electronic air waybill is generated by agent (forwarder) ; this creates the so-called route map in C2K in which all the steps are followed
  • RCS =  cargo and documents are received 'Ready For Carriage' and accepted by airline (handler)
  • DEP = cargo and documents departed at airport of origin
  • ARR = cargo and documents arrived at airport of destination
  • RCF =  cargo has arrived in the cargo bay at final destination ; cargo and air waybill are administratively received in the system
  • NFD = cargo and documents ready for pick-up at airline (handler), the customer (forwarder) is notified
  • DLV = cargo and documents delivered to customer (forwarder)

In each of these steps something may go wrong, which has it's consequences for the following steps and / or the planned throughput time of the shipment ; these occurrences are logged.

Here C2K uses two key performance indicators (KPI's) to determine whether the air transport process is going as planned:
  • FAP = Flown As Planned (the complete shipment has flown at or before the last planned flight with a maximum 12 hour delay)
  • DAP = Delivered As Promised (NFD in full and on time statuses are achieved)


Kerry Logistics data centre



Measuring all these steps make it possible to track & trace shipments, and provide quality performance reports to all parties involved.  Evaluation of the performance will then lead to process improvements where necessary.

Look for a detailed explanation about Cargo 2000 in this presentation on IATA's site and here in SkyTeam's introduction on e-freight.  Read about the Cargo 2000 Master Operating Plan in this presentation on IATA's site.  Read more about the background and read the latest Cargo 2000 newsletters here on IATA's site.

More and more customers now choose Cargo 2000 companies among their preferred suppliers as it provides quality performance backed by reliable data.

Read more about Cargo 2000 and the value for airfreight shippers here on The Shipper's Voice.
Read more about the Cargo 2000 process here in Kuehne + Nagel's "Cargo 2000 in Practice" brochure.

Cargo 2000 is rapidly becoming more relevant and accessible for all parties involved - read about it here in Air Cargo News.




The official Cargo 2000 logo




In 2016 Cargo 2000 is relaunched as Cargo iQ.  


From the IATA website: 
Cargo iQ is an IATA interest group with the mission of creating and implementing quality standards for the worldwide air cargo industry. Cargo iQ operates as a not-for-profit membership group supported by IATA and composed of some 80 major airlines, freight forwarders, ground-handling agents, trucking companies and IT solution providers globally.
Cargo iQ members developed a system of shipment planning and performance monitoring for air cargo based on common business processes and milestones. As part of that system, the Master Operating Plan (MOP) describes the standard end-to-end process of transporting air cargo.
 
Cargo iQ launched a strategic transformation to increase its value, positioning itself as the key provider of quality standards and metrics for the air cargo industry. With updated specifications, industry recognition, and a new ambition for the future, now is the time to join the initiative.

For airlines, forwarders and handling companies alike, Cargo iQ membership is the path to process control, quality monitoring and services improvements. Companies can join Cargo iQ within a series of membership categories (pdf) depending on their line of business and size.






I invite all of you in the industry to contact me for corrections or additions, 
and who are new in the business to question me 
in order to improve the information on this site! 


 
[last updated Mar 16th, 2016]
 

3 comments:

  1. While analysts say rates across the board are forecast to be fairly level compared to what shippers have seen over the past two years, they add that there are a number of unanswered economic and regulatory questions that could greatly affect rates if suddenly resolved.

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  2. Hi,

    Thank you for posting all of this information. It's all been very useful to help me get acquainted with the Cargo 200 0 process. But I have a question. Do you happen to know how Cargo 2000 define failure for their milestones (RCS,RCF,DEP,etc.)?

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