Air, Freight News

FIATA and IATA overhaul agency programme

[ July 18, 2016   //   ]

The International Air Transport Association (IATA) and the International Federation of Freight Forwarders Associations (FIATA) have unveiled a new-look IATA Cargo Agency Program, which they say willput forwarders on a more equal footing  than the present airline-centric set-up.

The new IATA-FIATA Air Cargo Program (IFACP), signed on 18 July by IATA director general and chief executive, Tony Tyler and FIATA president, Huxiang Zhao, moves decision-making will be made by a new body, the IATA-FIATA Governance Board (IFGB, jointly managed by forwarders and airlines. It reflects the evolution of IATA cargo agents or freight forwarders from being selling-agents for airlines to purchasing customers.

IATA senior vice president, financial and distribution services, Aleks Popovich, described the new program as “the result of four years of hard work to modernize the relationship between freight forwarders and airlines”.

Chairman of FIATA’s Airfreight Institute, Rudi Sagel, added that the old Cargo Agency Program had long needed updating. “IFACP will eliminate unnecessary administrative procedures and costs as well as free up valuable resources to tackle the complex challenges that today’s global trade presents.”

The agreement will be publicly signed and endorsed at the October FIATA World Congress in Dublin, Ireland, after which there will be a phased rollout starting with a pilot programme in Canada with completion worldwide expected by the end of 2018.

There will be no immediate effect on IATA cargo agents; existing participants in the IATA Cargo Agency/Intermediary Program will sign a new agreement when implementation begins in their country and no further assessment will be required.

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