The International Air Transport Association and the International Federation of Freight Forwarders Association have agreed to replace the existing IATA Cargo Agency Program with a joint IATA-FIATA Air Cargo Program (IFACP).
The phased rollout of IFACP will begin in early 2017 with Canada as the pilot country. It is anticipated that full global rollout will be completed by end of 2018.
The two organisations said the move reflected the evolution of the market with IATA Cargo Agents (freight forwarders) have evolved from being “selling-agents” for airlines to being their “purchasing-customers”.
The new program moves decision-making on the rules governing the airline-forwarder relationship away from an airline-led conference to a governance body – the IATA-FIATA Governance Board (IFGB) – jointly managed by forwarders and airlines, which reflects today’s market conditions.
Rudi Sagel, chairman of FIATA’s Airfreight Institute, said: “The Cargo Agency Program has long needed updating. I am really pleased that FIATA and IATA have joined forces to provide our industry with a new, modern program and a framework for operation that benefits both airlines and freight forwarders. IFACP will eliminate unnecessary administrative procedures and costs as well as free up valuable resources to tackle the complex challenges that today’s global trade presents.”