New IATA FIATA Air Cargo Program – IFACP – launches in Canada

8996059_iatafiata_program

 

Forwarders and airlines to jointly govern IFACP, which existing Cargo Agency/Intermediary Program members can join with no further assessment

Geneva and Zurich, Switzerland, Tuesday 15th August 2017 – The new IATA FIATA Air Cargo Program (IFACP) has been launched in Canada.

The new Program, which will be rolled out globally following the Canadian pilot, replaces the existing Cargo Agency Program, and will be jointly managed by forwarders and airlines as equal partners in the decision-making process.

A new IATA-FIATA Governance Board (IFGB) has been established to run the Program, which provides a framework of industry standards that are relevant and in line with best practices and safety regulations.

Existing Cargo Agency Program members will join IFACP with no further assessment and will continue their existing enrollment in Cargo Account Settlement Systems (CASS), which remains unchanged, under the jurisdiction of the Cargo Agency Conference.

The new IFACP Freight Forwarder Agreement shall govern the relationship between freight forwarders and air carriers participating in the Program.

“Simplifying the governance structure reduces the administrative requirement to manage the Program,” said Juan Antonio Rodriguez, IATA Director FDS Operations.

“Given that more than 80 per cent of transactions are performed by freight forwarders acting as principals, the proposed IFACP better clarifies and validates the business through a buyer-seller relationship.”

IFACP properly addresses the principal-to-principal relationship between freight forwarders and airlines, helping to clarify liability issues on cargo claims, as well as supporting members to work towards key industry goals such as e-freight adoption, he concluded.

During the roll out, current participants of the IATA Cargo Agency/Intermediary Program will be provided with a new agreement and will automatically join IFACP and continue their existing enrollment in CASS once they have signed and returned the paperwork.

New applicants will need to submit a form and meet the defined financial and operational criteria.

“FIATA is pleased that the implementation phase is now a reality, a true testament to the hard work and sustained efforts of both Forwarders and Carriers over the past few years,” said Keshav Tanna, incoming Chairman of FIATA’s Air Freight Institute.

“We are optimistic that the IFACP will foster innovation to deal with the commercial challenges facing the air cargo industry.”

IATA Airline members will automatically transfer to the new Program on the date on which IATA declares IFACP effective in any given region or country.

Canada is the first territory to pilot the new Program, which was developed to meet the evolving needs of the air cargo industry.

“Our relatively small, well-connected airline and forwarder community makes Canada a natural for the IFACP pilot country,” said Ruth Snowden, Executive Director of the Canadian International Freight Forwarders Association (CIFFA).

“We are pleased that Canada is the first to engage in this new, collaborative program, which better reflects the reality of today’s current principal to principal relationship between airlines and forwarders.”

Previously, cargo agents were “selling agents” for, and on behalf of, airlines, whereas today the clear majority of forwarders are “purchasing customers” from those airlines, and their business relationship is often as buyer and seller.

ENDS

To download a Word version click here or to download a PDF version click here

Picture caption – for a high-resolution version, contact Emma at Emma@meantime.global 

“FIATA is pleased that the implementation phase is now a reality, a true testament to the hard work and sustained efforts of both Forwarders and Carriers over the past few years,” said Keshav Tanna, incoming Chairman of FIATA’s Air Freight Institute.

KRT photo 

“Simplifying the governance structure reduces the administrative requirement to manage the Program,” said Juan Antonio Rodriguez, IATA Director FDS Operations.

Screen Shot 2017-08-14 at 14.50.11

 

About the IATA-FIATA Air Cargo Program (IFACP)

The air cargo industry has undergone significant changes over recent years, including the emergence of new business relationships between forwarders and airlines. Today’s freight forwarders in most cases conduct business as principals and carrier customers, instead of acting as agent of a carrier.

IATA and FIATA recognized the need to modernize the current IATA Cargo Agency Program and therefore have worked together to develop and introduce a new air cargo program – the IATA-FIATA Air Cargo Program (IFACP).

This new program is administered and managed as a joint program on behalf of and to the benefit of the Carriers and Forwarders. IATA and FIATA will be encouraging their respective members to apply recommended practices on industry initiatives, which include e-commerce, safety and security, and improved quality.

The IFACP is run by an IATA-FIATA Governance Board (IFGB), composed of senior airline and forwarder representatives.  The IFGB provides a framework of industry endorsement standards that are relevant and in line with air cargo best practices and safety regulations.

Regional and national Joint Councils provide feedback and discuss and submit proposals to the IFGB in respect of endorsement standards, including operational and financial criteria.

IFACP is being rolled out globally from August 2017.

You can follow us at https://twitter.com/IFAirCargoProg for news specially catered for the media or visit us at www.facebook.com/IATA-FIATA-Air-Cargo-Program-1725945760961189/

 

About IATA

The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 275 airlines or 83% of total air traffic.

IATA supports many areas of aviation activity and helps to formulate industry policy and critical aviation issues.

IATA works with its members and global regulatory authorities to improve aviation safety, security, environmental performance, and efficiency.

It seeks to improve understanding of the industry among decision makers and increase awareness of the benefits that aviation brings to national and global economies.

You can follow us at http://twitter.com/iata2press for news specially catered for the media or visit us at iata.org/pressroom

 

About FIATA

FIATA, the International Federation of Freight Forwarders Associations, was founded in Vienna, Austria on May 31st, 1926.

It is a non-governmental organization that today represents an industry covering approximately 40,000 forwarding and logistics firms, employing around 10 million people in some 160 countries.

FIATA has consultative status with the Economic and Social Council (ECOSOC) of the United Nations (inter alia ECE, ESCAP, ESCWA, etc.), the United Nations Conference on Trade and Development (UNCTAD), and the UN Commission on International Trade Law (UNCITRAL) as well as many other UN related bodies, e.g. the World Bank.

It is recognised as representing the freight forwarding industry by many other governmental organisations, governmental authorities, private international organisations in the field of transport and logistics, such as the European Commission (through CLECAT), the International Chamber of Commerce (ICC), the International Air Transport Association (IATA), the International Union of Railways (UIC), the International Road Transport Union (IRU), the World Customs Organization (WCO), the World Trade Organization (WTO), etc.

For further information, please go to www.fiata.com