Freight forwarding companies operated within the IATA Cargo Agents’ rules for several decades; their services gradually evolved in time from being “selling-agents” for the airlines’ services to becoming their purchasing customers. IATA and FIATA having joined forces to review, refine and re-engineer this Agency Program to reflect these changes, the IATA FIATA Air Cargo Programme was adopted by both organisations in 2016. The brand new program moves decision-making on the rules governing the airline-forwarder relationship to a governance body jointly managed by forwarders and airlines, which reflects today’s market conditions
Background
Vision
To reengineer the IATA Cargo Agency Program and develop
a modernized program that meets the needs of today’s air
cargo community, ensuring mutual benefits for Airlines and
Freight Forwarders alike.
Benefits
Over 80% of IATA Cargo Agents tender cargo to Airlines as a
freight forwarder, on a principal basis, and no longer as the
true agent of the Airlines. Addressing properly the Principal-
to-Principal relationship between Freight Forwarders and
Airlines will help to reduce liability issues and the risk of legal
challenge going forward.
Potential to achieve key industry goals including e-cargo
priorities by establishing a joint IATA-FIATA Air Cargo
Program
Simplifying the Governance Structure reduces the
administrative requirement to manage the program
Proposed Program ModernizationCURRENT FUTURE
8 Agency Programs operating under different and
varying Cargo Resolution-Rules
Only 1 Global IATA-FIATA Air Cargo Program under
standard rules, jointly managed by the IATA-FIATA
Governance Board
Cargo Committee and Cargo Agency Conference
advise strategic direction
IATA- FIATA Governance Board advises strategic
direction for the IATA FIATA Air Cargo Program
IATA Cargo Agency Conference maintains governance
over the CASS
No change to 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 – unchanged
(CASS rules consolidated into a single standard
Resolution – new 851r to be launched with IFACP)
More than 80 diverse local and regional joint or
airline-only governance bodies
Only 10 Regional/National Joint Councils (Canada,
LATAM, Europe including Russia, India, China, Africa,
Middle East, Asia Pacific, HK & TW, 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)
New IFACP Forwarder Agreement
CASS governed by IATA Cargo Agency Conference
A degree of conflict with forwarding community
caused by ambiguous rules and terms
Clearly defined roles and responsibilities and jointly
managed
Agent based accreditation standardsCustomer based endorsement standards established
following joint consultation
Future Governance StructureG
lob
al G
rou
ps
D) FLWG and LCAG-Cargo
F) Regional/National Joint Councils
B) Cargo Procedures
Conferences
Management Group
(CPCMG)
Re
gio
nal
Gro
up
s
Lo
cal
Gro
up
s Ad hoc if required
(Local joint groups for market
input or subject matter specialists)
Governed by
E) IATA-FIATA Governance Board
(IFGB)
Governed by
A) Cargo Agency Conference (CAC)
CASS and CASS Associate (as current)IATA-FIATA Air Cargo Program
(IFACP)
C) IATA/FIATA
Consultative Council
(IFCC)
I) CASS Policy Group
(CPG)
H) Cargo Committee
Key Highlight (1 of 3)
The current IATA Cargo Agency/Intermediary Programmes will be
replaced by the new IATA-FIATA Air Cargo Program (IFACP)
under the governance of IATA-FIATA Governance Board (IFGB).
Once it is implemented, the IATA Cargo Agency/Intermediary
Programme Rules will be rescinded.
Future regional or national Joint Councils will be established to
provide 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, established by today’s
Conference governance structure.
Key Highlight (2 of 3)
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 Programme will be reviewed by legal and be
transferred to IFACP. After that point, changes will be agreed
through the Joint Council & IFGB.
One of the agreed conditions between IATA and FIATA, prior to
launching the IFACP in a particular country, is that the
corresponding LFC will undergo a competition-law review to
ensure that each such criteria are objectively justified, fair,
transparent and non-discriminatory
The CASS remains ‘as is’ and under the jurisdiction of the IATA
Cargo Agency Conference.
Key Highlight (3 of 3)
Ready for carriage conditions, operational criteria (e.g.
Dangerous Goods 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
compliance to agreed industry operational requirements.
How can a Freight Forwarder join the new
program?F
reig
ht
Fo
rward
er
Go
vern
ed
by C
arg
o
Ag
en
cy C
on
fere
nce (C
AC
)
Go
vern
ed
by IA
TA
-FIA
TA
Go
vern
an
ce
Bo
ard
(IFG
B)
CA
SS
an
d N
on
-CA
SS
Co
un
trie
s
Sign the Freight
Forwarder Agreement,
and return the signed
copies to IATA
Join IFACP?Current participants in IATA
Cargo Agency/Intermediary Program
Become
member of
IFACP
Join CASS
only?
Sign CASS Associate
Agreement, and return
the signed copy to IATA
Submit the application to
IATA and pass the
assessment with the
defined financial and
operational criteria
Yes
New applications
Become
CASS
Associate
Participate in
CASS
Change on IATA ResolutionsCURRENT FUTURE
8 agency programs (incl. 4 Intermediary Programs) i.e.
Reso 801, 803, 805, 805zz, 807, 809, 809zz, 813
A single Global Air Cargo Program jointly managed by
IATA and FIATA to replace 8 agency programs. The new
program rules will include:
1) The financial and operational criteria as applicable
today in the Cargo Agency Program will continue and
be transferred to the new program, after that point,
changes will be agreed through Joint Council (JC)
process. Prior to IFACP launch, the corresponding
Local Financial Criteria will undergo a competition-
law review to ensure that each such criteria are
objectively justified, fair, transparent and non-
discriminatory
2) New fee structure
3) Terms of reference of JC, etc.
Resolution 851 & Appendices
CASS related resolutions
(i.e. Reso 801r, 801re)
1) Resolution 851 & Appendices
2) Consolidation of 801r/801re in new CASS participation
(Resolution 851r,) deals exclusively with CASS
participation. Airlines and forwarders are free to make
their own bilateral arrangements for reporting, billing
and settlement outside of CASS. Thus the entire
Section 1 of the current Resolution 801r dealing with non-
CASS will disappear. It will replace the current 801r and
801re.
IATA-FIATA Governance Board
(IFGB)
Govern the IATA-FIATA Air Cargo Program
Voting Members:4-6 equal number of members from both the airlines and
freight forwarders. Appointment of Airline representatives through Cargo
Agency Conference, with 2 representatives coming from Cargo Committee.
FIATA will appoint the freight forwarder representatives.
Non-Voting Members: IATA Global Head of Cargo and Chairman of Airfreight
Institute of FIATA.
Decisions by the IFGB require the concurrence of a majority of the
representatives of each voting constituency, provided that the quorum
necessary to take action shall be four or more members of each side.
Responsible to establish guidelines for endorsement of IFACP Forwarders
related to the operational and financial criteria, and to determine relevant
industry standards and procedures.
Consider and adopt, where appropriate, recommendations from the regional
and national Joint Councils;
Engage in commonly agreed industry projects and initiatives;
Develop and maintain the IFACP Handbook
Regional/National Joint Council
(JC) 4-6 equal number of members from the airlines and freight forwarders.
Airlines representatives appointed by Cargo Agency Conference for two-year
term.
Freight Forwarder representatives appointed by FIATA, drawing from the
respective national or regional cargo or forwarder associations.
The Joint Council, actions are in the form of recommendations made by a
majority present of each of the two constituencies, and meetings as necessary
either in person or via conference call.
Any JC members who miss two consecutive meetings will be subject to
removal from membership, and replaced by other airlines or freight forwarders.
The IATA Global Head of Cargo and the Chairman of AFI-FIATA, or their
appointed representatives to be non-voting members of the Joint Council. In
addition, the Program Secretariat (IATA) to act as the secretary.
The Program Secretariat (IATA) provides secretariat support for meetings, and
ensure that agenda documentation and reports are circulated to all Joint
Council members according to IATA-FIATA Governance Board and Joint
Council agreed procedure.
Set up temporary local working groups as appropriate
Proposed Implementation Plan
*Tentative timetable is subject to the program development
Each Region/Country will have around 4-6 months to complete the implementation.
It is subject to the size and the business environment of market.
Region/Country Estimated Launch* Estimated End Date
CA Apr-17 Aug-17
Europe (including EACP, Russia and other
countries in Europe)Sep-17 Feb-18
LATAM Sep-17 Feb-18
HK& TW Sep-17 Feb-18
AU and NZ Sep-17 Feb-18
Asia Pacific Jan-18 Jun-18
CN Jan-18 Jun-18
Middle East Jan-18 Jun-18
Africa Jan-18 Jun-18
IN Jun-18 Dec-18
What is involved during
the implementation? (1 of 3)
IATA
Regional/National campaigns to introduce the new program
Set up and manage the IATA FIATA Governance Board and
Regional/National Joint Councils
Send IFACP Freight Forwarder Agreement all current IATA
Agents
Control of return of new agreement
Follow up action if not signed / returned
No financial assessment is required for current IATA Agents
transferring to the new program
What is involved during
the implementation? (2 of 3) Airlines
Attend the information session held by IATA and local Freight
Forwarders Association to explain the new program rule in
details, the implementation timeline and the deadline of
rescinding current Cargo Agency Program
If the airlines would like to part of Regional Joint Council, submit
the nomination form to IATA for the selection process (mail vote
via Cargo Agency Conference)
Understand the new General Concurrence requirements to
notify IATA any ‘opt-out’, due to the Airline imposing additional
bilateral (financial) criteria, in respect of: the whole market, or
any Individual Forwarder(s)
For non-IATA members, sign and return the new General
Concurrence to IATA.
What is involved during
the implementation? (3 of 3)
IATA Cargo Agents
Attend the information session held by IATA and local
Freight Forwarders Association to explain the new program
rule in details, the implementation timeline and the
deadline of rescinding current Cargo Agency Program
If the freight forwarder would like to part of Regional Joint
Council, submit the nomination to FIATA for the selection
process
Sign and return the Freight Forwarder Agreement by the
defined deadline.
Next Steps
Key Milestones Timeline* Status
1Secure endorsement of IFACP package by CAC, including adoption of
new CASS participation rules Resolution Mar-15 Completed
2FIATA to complete its legal and due diligence reviews of IATA-FIATA
Cooperation Agreement and IFACP Feb-16 Completed
3 IATA and FIATA signed the IATA-FIATA Cooperation Agreement Oct-16 Completed
4Set up the IFACP Working Group to continue the drafting of IFACP
Handbook and review the timelines of implementation Nov-16 Work in progress
5 Complete the drafting of IFACP handbook (with Program Rules) Nov-16
6Set up the IFGB and hold inaugural IFGB meeting to approve the
IFACP Handbook and implementation planJan-17
7 Kick off the implementation of IFACP in the pilot country (Canada) Q2 2017
8Kick off the phased roll out worldwide of the IFACP, replacing the
current IATA Agency-Intermediary Programs. As of Q4 2017
For more information, go to the
FIATA or IATA website
http://fiata.com/fileadmin/user_upload/documents/IFACP_White_paper.pdf
http://www.iata.org/whatwedo/cargo/Pages/iata-fiata-air-cargo-program.aspx