IATA is supporting five pilot projects to test standards, processes and technical solutions of its paper-free e-freight system, which if implemented stands to save the industry US$1.2 billion annually, reports the Panama Bulletin.

The so-called "e-freight pilots", scheduled for delivery in 2007, will link the air cargo markets in Canada, Hong Kong, the Netherlands, Singapore and the UK.

IATA said Air Canada, Cathay Pacific, KLM, Singapore Airlines and British Airways in cooperation with members of Freight Forward International and customs administrations will use the year-long test period to develop, analyse and refine standards for e-freight.

The report pointed out that current international air cargo shipment comprises up to 38 documents and together the annual volume of paperwork shipped by airlines is enough to fill 39 Boeing 747 freighters. "By eliminating this paper, the industry could save $1.2-billion," IATA said.

IATA officials have said that for the e-freight programme to work at full potential, it would require the involvement of 16,000 stakeholders, which includes 20 industry bodies, 200 customs administrations, 265 airlines and more than 15,000 forwarders.