Skip to main content

Test Home
You & IATA

Search

You are here: Home » Programs » Work Groups » Cargo Agency Modernization Program

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. 

Resources

Benefits

  • Simplifying the Governance Structure reduces the administrative requirement to manage the program
  • Given that >80% of transactions are performed by Freight Forwarders acting as principals, the proposed IATA- FIATA Air Cargo program better clarifies and validates the business through a buyer/seller relationship
  • Potential to achieve key industry goals  including e-cargo priorities by establishing a joint IATA-FIATA Air Cargo Program
  • Addressing properly the Principal-to-Principal relationship between Freight Forwarders and Airlines will help to diminish liability issues and reduce the risk of legal challenge going forward

CAMP Value Proposition (pdf)

Key Highlights

  • The current Cargo Agency Program will be replaced by the new IATA-FIATA Air Cargo Program (IFACP) and it will be governed by IATA-FIATA Governance Board (IFGB)

  • Future regional or national Joint Councils (as appropriate), will be established to provide local feedback and to discuss and submit proposals to the IATA-FIATA Governance Board (IFGB).  This new streamline governance will replace the current local Assemblies, Councils and ICAPs, which have been established by today’s governance structure

  • The new Joint Councils may propose to IFGB the minimum criteria of financial standing required for endorsement and retention of Freight Forwarders in their respective country/ies or region

  • The financial and operational criteria as applicable today in the Cargo Agency Program will continue and be transferred to IFACP. After that point, changes will be agreed through Joint Council process and IFGB’s approval

  • The CASS remains ‘as is’ and under the jurisdiction of the Cargo Agency Conference

The chart below provides more details on the proposed changes:

Current

Future

8 agency programs (incl. 4 Intermediary Programs)

1 Global Air Cargo Program jointly managed by IATA and FIATA, through the IATA-FIATA Governance Board

Cargo Committee and Cargo Agency Conference advises strategic direction

  • IATA- FIATA Governance Board advises strategic direction for the IATA-FIATA Air Cargo Program
  • Cargo Agency Conference advise strategic direction on CASS
  • No change from the existing role, Cargo Committee advises strategic direction to IATA on all Cargo matters
  • Cargo Committee and FIATA Airfreight Institute advise strategic direction to respective IFGB delegates

CASS settlement and procedures

CASS settlement and procedures

Diverse local and regional joint or airline-only governance bodies

Potentially 8 Regional/National Joint Councils (Canada, LATAM, Europe including Russia, India, China, Africa/Middle East, Asia, Australia including New Zealand and South Pacific)

Conference adopted Resolutions

  • IATA-FIATA Air Cargo Program governed by IATA-FIATA Governance Board (e.g. determining financial and operational criteria for  membership endorsement)
  • CASS governed by Cargo Agency Conference

A degree of conflict with forwarding community caused by  ambiguous rules and terms

Clearly defined roles and responsibilities

Agency based accreditation standards

Customer based accreditation standards

  • Ready for carriage conditions, operational criteria (e.g. DGR training requirements) and best business practices (e.g. cargo standards) will be referenced in the IATA-FIATA Air Cargo Program Handbook helping to raise the Airline and Freight Forwarder’s awareness of their responsibilities and their compliance to agreed industry operational requirements

  • New fee proposal will be presented to the IFGB which will determine the ultimate fees and fee structure to be implemented, please note the below key principles:

    • One base-rate currency for establishing fee amounts

    • IATA-FIATA Air Cargo Program will be funded by the participating Freight Forwarders and Airlines, with fee contributions based on the number of locations (i.e. headquarters and branches for Airlines and Freight Forwarders).  Freight Forwarders and Airlines will both pay the same amount per location.

    • A headquarter is defined as primary location of business in a given country, a branch office is defined as a location (other than the designated Head Office) where cargo is made ready for carriage and/or cargo is delivered to an Airline or the Airline’s designated agent, ready for carriage, in a given country.

    • Considering the differences in participants operating in developed and lesser-developed nations, a two-tiered tariff might be offered.

    • When implemented in Jan 2017, Airlines and Freight Forwarders overall will not contribute more, than what they contributed in 2014 for the Cargo Agency Program and CASS. The airlines’ payment will be compensated by the reduction in CASS operating unit fee from 2014-2016 prior to full implementation of IATA-FIATA Air Cargo Program in 2017.  (The CASS Operating Unit Fee Business Plan 2015 -2020 was presented to Cargo Committee and CASS Policy Group in November 2014).

Next Steps

  • FIATA undertaking financial due diligence and legal compliance reviews of IATA-FIATA Cooperation Agreement and IFACP (Q4 2014)
  • IATA and FIATA to sign the IATA-FIATA Cooperation Agreement, following completion of necessary reviews (Q1 2015)
  • Start the nomination process for IATA and FIATA members of the IATA-FIATA Governance Board (IFGB)
  • Secure adoption of new CASS participation rules resolution, and endorsement of IATA-FIATA Air Cargo Program by Cargo Agency Conference in March 2015
  • Set up the IFGB and hold the first IFGB meeting in April 2015
  • Implement the new IATA-FIATA Air Cargo program in the pilot country/region (proposed: CA for the pilot) in June 2015 and review the pilot implementation
  • Roll out the new IATA-FIATA Air Cargo program in other regions from Q3 2015 to 2016
ADVERTISEMENT


Additional information

© International Air Transport Association (IATA) 2014. All rights reserved.