Jul 20, 2016

IATA , FIATA agree to implement a new cargo program

International Air Transport Association (IATA) and International Federation of Freight Forwarders Associations (FIATA) have agreed to implement the "IATA-FIATA Air Cargo Program (IFACP)" to replace the existing "IATA Cargo Agency Program." By shifting from the previous system that continued over several decades to the new system, they will bring the relationship between forwarders and airlines to an equal level in the industry and establish organizations for management and operations that are more suitable for the today's market conditions. IATA and FIATA plan to obtain approval at the FIATA World Congress 2016, which will be held in October 2016 in Dublin. It is anticipated that the IFACP will be launched on a trial basis in early 2017 in Canada and full global rollout will be completed by the end of 2018.
On July 18, each association announced that they have signed the agreement after the new program was adopted by Tony Tyler, Director General and CEO of IATA and Huxiang Zhao, Chairman of FIATA. IATA released the detailed documents relating to the agreement, including IFACP's governance (management and operations) system (see the figure), differences from the current system (see the table) and other matters. The IFACP will be managed and operated through the IATA-FIATA Governance Board (IFGB), in which IATA and FIATA jointly participated. Currently the Cargo Committee and Cargo Agency Conference (CAC) of IATA provide advices concerning strategic directions as organizations engaged in the air cargo industry. After shifting to the new system, IFGB will take the responsibility.

As for the cargo accounts settlement systems (CASS), which has been an issue of greatest concern, IATA's CAC will set policies and other matters as in the past. Its management and operating system for settlements and procedures will not be changed.

IATA and FIATA started to review, improve, and reorganize the existing system in 2012. As a result, they organized the IFGB that both airlines and forwarders jointly participate in and manage.
Various procedures necessary for the shift of systems that should be completed by companies, including the change of membership status, are described in IATA and FIATA's joint document released by IATA. For example, if a forwarder is a member of the current IATA Cargo Agent Program, its membership will be changed to a IFACP member by signing the IFACP Fleet Forwarder Agreement without any assessment. Also, an airline who is an IATA member, its membership will be automatically changed to a member of the new program just by adopting "Resolution 849" regarding the move to the new system without signing the agreement as a general rule.

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