The eFTI (Electronic Freight Transport Information) Regulation, set forth by the European Union (EU), is poised to significantly impact the digitization of the freight forwarding industry. Before delving into its implications, let’s first explore the essence of eFTI and how it will help to unlock online freight forwarding for logistics companies in Europe.
Essentially, eFTI is a pivotal component of the EU’s initiative to modernize freight processes across its member states. As the industry shifts from traditional paper-based documentation and lengthy customs procedures to electronic data exchange, eFTI emerges as a cornerstone of this transition. Aligned with the EU’s Smart and Sustainable Mobility Strategy and Green Agenda, the eFTI Regulation is slated for full implementation by 2025.
At its core, the eFTI Regulation seeks to establish a coherent legal framework governing the digital exchange of freight documentation. It sets forth technical standards for eFTI gates and platforms, mandating EU authorities to recognize and accept electronically submitted information from businesses, provided they opt for digital submission. Scheduled to be enforced in 2025, this regulation emphasizes the compulsory acknowledgment and acceptance of electronic freight information by competent authorities.
How the eFTI will help forwarders navigate the potential of online freight forwarding
In the landscape preceding the implementation of the Electronic Freight Transport Information (eFTI) system, the freight transportation sector grappled with a plethora of challenges. Paper-based documentation, fragmented data exchange among stakeholders, and the absence of standardized transmission methods hindered operational efficiency, leading to delays, heightened administrative costs, and unnecessary emissions from document production.
In response to these challenges and with a vision to drive digital transformation in freight transportation and logistics, the European Commission enacted the Electronic Freight Transport Information Regulation (eFTI 2020/1056) in 2020. This regulation aims to catalyze the adoption of digital technologies in the industry, with the following key objectives:
- Facilitating Compliance: The eFTI system streamlines regulatory compliance by digitizing the documentation required for transporting goods, simplifying processes for businesses.
- Cost Reduction: By reducing reliance on paper-based documentation and streamlining administrative procedures, the eFTI system lowers operational costs for industry operators.
- Enhancing Enforcement: Competent authorities are empowered to acknowledge electronically provided information regarding goods transport, bolstering regulatory oversight and enforcement capabilities.
- Ensuring Consistency: The eFTI system mandates competent authorities to uniformly accept electronic data, ensuring consistent application across the transportation sector.
- Promoting Interoperability: The regulation encourages interoperability among various IT systems and solutions utilized across the industry, fostering seamless data exchange and collaboration among stakeholders.
Anticipated Changes with the Introduction of eFTI in 2025
In 2025, the advent of eFTI brings forth a transformative shift, facilitating the electronic submission of crucial transportation information within the European Union. This legal framework marks a significant departure, allowing economic operators to seamlessly relay data regarding goods transported via road, rail, inland waterway, or air.
Additionally, the impact of eFTI extends across a spectrum of EU regulations, spanning tariffs, combined transport, road cabotage, waste shipment, dangerous goods, aviation safety, and rail interoperability, thus creating an ambiance congenial to online freight forwarding. Despite delays along its development journey, eFTI is set to achieve full functionality by December 2025.
Moreover, under the eFTI Regulation, authorities must accept electronically submitted information, adhering to specific formats outlined within the Regulation. However, it’s worth noting that while electronic submission is mandatory for authorities, economic operators retain the option to stick to traditional paper documentation if they so prefer.
Moreover, the Regulation mandates that authorities align their systems with common EU standards, ensuring uniformity and consistency across the Union. As highlighted by Jaume Bagot, Head of Process Improvement at the Port of Barcelona, private companies have often spearheaded the transition to electronic documentation, despite facing challenges with acceptance by governmental bodies. With the eFTI Regulation, these entities are now legally bound to adopt electronic formats, marking a pivotal step towards streamlined processes and enhanced efficiency.
Easy exchange of document
eFTI platforms are poised to revolutionize logistics operations by enabling seamless document exchange. These platforms, leveraging cutting-edge Information and Communication Technology (ICT) systems and databases, serve as robust repositories for document information. Member States are obligated to implement the eFTI Regulation by December 2025, with the flexibility to do so earlier if they possess certified eFTI platforms and service providers.
Certified platforms, operated by either private or public entities, act as the conduit for accessing and disseminating documentation, with regulatory administrations playing a pivotal role on the receiving end. While economic operators retain the option to provide regulatory information via traditional means, utilizing a certified eFTI platform and service provider offers an attractive alternative.
Authorities are empowered to access eFTI platform data upon request, with preliminary transport controls envisaged under the eFTI Regulation’s legal framework. These controls may involve queries through an eFTI window to confirm the presence of a unique identification link associated with ongoing transport operations. Upon verification, authorities can request access to pertinent data.
Interoperability poses a significant challenge in the European freight transport sector, particularly concerning the integration of IT systems with legacy paper-based frameworks. Standardization of data formats and protocols is imperative to ensure parity between paper and digital documents. This harmonization is important in streamlining information exchange and enhancing efficiency ensuring seamless online freight forwarding.