The air freight industry expects to save up to $1.2 billion every year when paper documents are completely replaced by electronic information. The first stage in developing an international system is a set of six pilot projects initiated by the International Air Transport Association.

In cooperation with cargo airlines, freight forwarders and ground handling agents, IATA on Monday launched the projects on key trade routes connecting Canada, Hong Kong, the Netherlands, Singapore, Sweden and the U.K.

"The paper-free era for air freight begins today," said Giovanni Bisignani, director general and CEO of IATA.

The pilot projects are designed to test common standards, processes, procedures and systems. During the initial phase, selected shipments will travel without the house and master airwaybills. The six pilot locations were selected for their technical and legal ability to exchange information.

"High oil prices and cumbersome processing requirements are handicapping air transport's competitiveness with sea shipping," said Bisignani. E-freight is expected to help cut costs and improve transparency throughout the supply chain.

Local customs administrations and airport authorities worked together with Air Canada, British Airways, Cathay Pacific, KLM, Martinair, SAS and Singapore Airlines and with DHL Global Forwarding, Panalpina, Kuehne+Nagel, Schenker, TMI Group-Roadair and Jetspeed to develop the test projects.