New Air Cargo Contract Raises Liability Risk

A new air cargo contract has raised concerns in the air logistics industry. The International Air Transport Association (IATA) introduced a revised framework for direct airway bills, which shifts the responsibility for misdeclared goods, concealed dangerous goods, and other shipping errors from businesses to the agents tendering shipments. This change has been met with criticism from freight forwarders and insurers, who argue that it creates an inconsistent operating environment and increases liability exposure.

The Change in Air Cargo Transportation

IATA's revised framework for direct airway bills took effect on July 1. The association argued that the change was necessary due to the growth of B2C e-commerce shipments of dangerous goods, such as lithium batteries. However, logistics providers complain that the decision was rushed through with little consultation, making it difficult for freight forwarders to prepare for the change.

■The new regulation increases the liability risk for forwarders.

■Forwarders are taking on more responsibility, especially for high-risk shipments such as dangerous goods.

■Insurers are concerned that this change could lead to higher premiums in the air cargo transportation sector.

Forwarders' Reaction

Forwarders are reacting to the change, stating that IATA introduced the new regulation without sufficient consultation. They argue that this situation creates an inconsistent operating environment and that different airlines may have different liability regimes.

This development in the air cargo transportation sector is something that forwarders and insurers need to closely monitor. It could lead to a significant reallocation of risk and increase the responsibilities of forwarders.