Consolidated Freightways First LTL Carrier to Activate Exchange of Electronic In-Bond Data With U.S. Customs.

Business Editors, High-Tech Writers

TORONTO--(BUSINESS WIRE)--Oct. 4, 2000

Direct, Real-Time Electronic Link Shaves Days Off Transit Times; Eliminates Need for Brokers' Services as Freight Crosses U.S. Borders

Consolidated Freightways (CF), a long-haul LTL transportation provider that has pioneered the use of innovative technologies in its business practices, this month activated a direct electronic link between U.S. Customs and the company's border terminal in Toronto.

The link streamlines in-bond freight movements for customers by eliminating broker processing of in-bond clerical paperwork at U.S. border gateways.

Since the beginning of August, CF has been electronically transmitting manifest level data to U.S. Customs in real-time, streamlining clearance-based administrative activities, and shaving one to two days off transit times for customers who ship internationally. Using "QP" application software, CF can gain direct access to the Automated Broker Interface (ABI) Network System of U.S. Customs, for fast, paperless transmission of in-bond documentation.

"Our goal is to speed the movement of freight to its final destination," says Dennis Freeman, Customs Compliance manager for CF. "The technology made available by U.S. Customs is helping automate our in-bond clearance process. By reducing paperwork and other clearance-based administrative activities, we can get shipments to our customers faster and more efficiently."

Shipments entering the U.S. are placed "in-bond" when part of the required documents needed for entry and clearance are unavailable, or when freight is moving directly from point of importation to another point of exportation. Under these circumstances, a broker or carrier assumes responsibility for fulfilling customs requirements before freight is released to the consignee. Often, the in-bond customs process requires administrative or clerical data before freight can continue moving without delay.

Typically, a customs broker is enlisted by shippers to prepare and manage in-bond documentation that is processed at the border. As the first motor carrier to participate in the electronic in-bond network of U.S. Customs, CF has been able to exchange data with the agency in real-time -- which means the provider can easily handle in-bond activation without the assistance of a third party.

"The link gives CF the benefit of being a 'one-stop shopping tool' for shippers moving freight across U.S. borders," says Freeman. "When our terminal receives in-bond cargo, CF electronically transmits required documentation direct to U.S. Customs. Under this new system, paperwork is eliminated and CF drivers no longer stop at a customs brokerage at the border. This is an eBusiness tool that makes our border crossings extremely efficient."

"The 'traditional' system is paper-ridden, labor intensive and involves time-consuming steps for brokers and carriers, as well as Customs officials," Freeman continues.

For example, the simple task of notifying U.S. Customs of a shipment's arrival requires carriers to hand deliver documentation to the nearest Customs office -- sometimes several miles away. Even though in-bond freight is often cleared in-transit, the paper-based step required for delivery authorization almost always results in unnecessary delay.

"The direct electronic link with Customs allows for the most timely notification of in-bond movements," says Freeman, adding that most everyone by now appreciates the added benefits of electronic transmission and data storage greatly reducing errors inherent in all manual procedures that require data re-entry.

Over recent months, CF has automated numerous clearance procedures, including in-bond movement notifications, arrival notifications and Customs delivery authorizations.

In addition to efficiencies at the border, Freeman asserts that benefits are spread throughout CF's entire network. "Automating the in-bond movement process takes the paperwork equation out of our entire North American terminal system," he explains. The carrier's Toronto facility can electronically process in-bond movements for any of CF's 350 terminals.

"CF has moved ahead with numerous technologies that are designed to help us better serve our customers," Freeman said. "Our relationship with U.S. Customs is a good example of a how partnerships can work to deliver innovative tools that are practical and smart."

With $2.4 billion in revenues, Consolidated Freightways operates one of the world's largest less-than-truckload (LTL) transportation networks. The company's highly skilled 22,000 professionals specialize in long-haul freight transportation throughout the North American continent.

CF's vast network of 350 terminals serves virtually every market in the U.S., Canada and Mexico. Each shipment typically moves between 500 and 3,000 miles and weighs between 300 and 15,000 pounds.