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Cargo Agency Modernization Program

The objective of the Cargo Agency Modernization Program is to reengineer the Cargo Agency Program to ensure it meets the needs of today’s air cargo community, ensuring mutual benefits for airline and forwarders alike. 

Benefits

  • Simplifying the Governance Structure reduces the administrative requirement to manage the program
  • Given > 80% of transactions are performed by forwarders acting as principals, the proposed Cargo Agency and Air Cargo programs better clarifies and validates the business through a buyer/seller relationship
  • Potential to achieve key goals within industry cargo priorities by establishing the IATA-FIATA Air Cargo Program

Proposed Program Modernization

Current

Future

Cargo Committee advises strategic direction

Cargo Committee and FIATA advise strategic direction on Air Cargo Program

CASS Settlement

CASS Settlement

Eight Agency Programs (including four Intermediary Programs)

One Agency Program managed by Conference and one Air Cargo Program jointly managed by IATA/FIATA

Diverse local, regional, global governance (including over 100 local carrier groups)

Seven Regional Joint Councils

Conference adopted Resolutions

Agency Program goverened by Conference resos. Air Cargo Program governed by IATA/FIATA Governance Board

Conflict with forwarding community caused by ambiguous roles and terms

Clearly defined roles and responsibilities

Agency based accreditation standards

Customer based accreditation standards differentiating the agency or freight forwarder relationship

Status

  • The support from Cargo Committee and IATA Board was obtained
  • The endorsement from IATA-FIATA Consultative Council was obtained
  • The clarification of Principal-to-Principal relationship was discussed and included in the draft of the agreement between airlines and freight forwarders 
  • The drafting of a new Global Resolution to replace the current Nine Resolutions is in progress
  • The cooperation agreement between IATA and FIATA for Air Cargo Program is under negotiation
  • The discussion of the Program Rules for Air Cargo Program started once the IATA-FIATA Alliance Agreement is finalized
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Additional information

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