Below is a comprehensive guide to EDI in shipping, covering how it works, the specific messages used in logistics, and the future of the technology.
1. What is EDI in Shipping?
At its simplest, EDI is the computer-to-computer exchange of business documents in a standard electronic format.
Before EDI, a shipping transaction required phone calls, faxes, and emails to move data from a Booking Agent to a Carrier, then to a Terminal, and finally to a Trucker. This manual process was slow and prone to error. With EDI, this data flows instantly between systems.
The Two Main Standards
Because shipping is global, EDI relies on strict standards so everyone "speaks" the same language.
ANSI X12: The dominant standard in North America. If you are moving freight by truck in the US, you are likely using X12 (e.g., "EDI 204").
UN/EDIFACT: The dominant standard globally and in Maritime/Ocean shipping. If you are moving containers internationally, you are likely using EDIFACT (e.g., "CODECO").
2. Critical EDI Messages in Shipping
Different stages of the supply chain use different "message types." These are codes that represent specific documents.
A. Ocean & Container Logistics (UN/EDIFACT)
These messages are used between Steamship Lines (Carriers), Terminals (Ports), and Depots.
| Message Name | Full Name | Description |
| CODECO | Container Gate-In/Out Report | Sent by a terminal to the carrier to confirm a container has entered or left the gate. This is the "trigger" for tracking events. |
| COPARN | Container Announcement | Used to authorize the release of an empty container or the drop-off of a full one. It functions essentially as a booking order for the terminal. |
| BAPLIE | Bayplan / Stowage Plan | A map of the ship. It tells the port exactly where every container is stacked on the vessel (e.g., Row 12, Bay 04, Tier 06). Essential for loading/unloading. |
| COPRAR | Discharge/Loading Order | Instructions from the carrier to the terminal telling them which specific containers to load onto or take off a ship. |
| VERMAS | VGM Message | Used to transmit the Verified Gross Mass of a container, a safety requirement for loading vessels. |
B. Trucking & Inland Logistics (ANSI X12)
These messages are used between Shippers, 3PLs, and Trucking Carriers.
| Code | Name | Description |
| 204 | Motor Carrier Load Tender | The shipper offers a load to a carrier. It includes pickup/drop-off location, weight, and equipment needed. |
| 990 | Response to Load Tender | The carrier accepts or rejects the offer sent in the 204. |
| 214 | Shipment Status Message | The "tracking update." Sent by the carrier to report status (e.g., "Arrived at Pickup," "Delivered"). |
| 210 | Freight Invoice | The electronic bill sent by the carrier to the shipper for payment. |
| 997 | Functional Acknowledgment | A "receipt" that confirms a computer system successfully received a file. |
3. How an EDI Workflow Works (Example)
Imagine a retailer importing goods from China to a warehouse in Chicago. Here is the invisible chain of EDI messages that makes it happen:
Booking (IFTMIN): The Freight Forwarder sends a booking request to the Ocean Carrier.
Release Order (COPARN): The Ocean Carrier tells the empty container depot to release a container to the trucker.
Gate Out (CODECO): The depot's system notifies the Carrier that the empty container has left the yard.
Stowage (BAPLIE): Once loaded on the ship, the vessel operator sends a plan to the destination port showing exactly where that container is sitting on the boat.
Arrival Notice (315/214): As the container moves, status messages update the retailer’s software: "Vessel Arrived," "Customs Cleared," "Gate Out."
Invoicing (210/INVOIC): Once delivered, the carrier’s system automatically sends an invoice to the retailer’s accounting system.
4. Key Benefits of EDI
Speed: Data transfer is instantaneous. There is no waiting for someone to read an email and type data into a system.
Accuracy: Eliminates manual data entry errors (typos). If a booking number is correct in the sender's system, it will be correct in the receiver's system.
Visibility: Enables "management by exception." You don't need to call to check where freight is; the system alerts you only if an EDI status message is missing or late.
Cost Reduction: Reduces administrative labor costs and the need for paper documentation.
5. The Future: EDI vs. API
While EDI is the current standard, APIs (Application Programming Interfaces) are the modern challenger.
EDI is like sending a batch of letters. It usually processes data in "batches" (e.g., sending all status updates once every hour).
API is like a live phone call. It connects systems in real-time (e.g., getting a tracking update the exact second it happens).
The Industry Outlook: Shipping is slowly moving toward a Hybrid Model. EDI will likely remain the standard for heavy documentation (Invoices, Bills of Lading) due to its reliability and widespread adoption, while APIs will take over for tasks requiring real-time speed, such as spot quoting and live GPS tracking.
Quick Summary Table
| Feature | EDI (The Standard) | API (The Challenger) |
| Speed | Near Real-time (Batch) | Real-time (Instant) |
| Setup | Complex, requires IT specialists | Simpler, uses web standards |
| Cost | High initial setup, low per-message | Variable usage costs |
| Best For | Large, recurring orders & invoices | Live tracking & Spot quotes |
){kind=link}
0 Comments