IFACP IATA FIATA Air Cargo Program

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1 The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen IFACP IATA FIATA Air Cargo Program Joana Nunes Coelho IFACP Governance Manager Paul Cheetham IFGB Member

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3 Background information In October 2016, IATA and FIATA signed the Cooperation Agreement (FIATA World Congress, Dublin) There (in the Cooperation Agreement) the Parties acknowledged the need to develop and introduce a new air cargo program (IATA-FIATA Air Cargo Program - IFACP) which the Parties mutually intend to administer on behalf of the freight forwarder and carrier participants (the IFACP Participants ) as instructed by the IATA-FIATA Governing Board (IFGB).

4 Background information On August 15 th, 2017 IFACP Canada roll out was launched. IFACP Program Secretariat and CIFFA sent out two joint communications to the Forwarder s community informing IFACP would be declared fully implemented in Canada on October 31 st, No limitations to the number or size of Forwarders participating were previously determined by the IFGB. By October 31 st according to the IFACP CA Implementation update report, IFACP Program Secretariat had received 44% signed IFACP Agreement. IATA, FIATA and CIFFA decided to extend the deadline for another 30 days, before any cut-over to IFACP (new deadline was now 30 November 2017). By then none of the multinational freight forwarders had signed the agreement.

5 Background information IATA and FIATA were contacted by some multinational forwarders raising concerns about the legal implications of the new IFACP Forwarder Agreement. In order to sign the new agreement, the Forwarders would like to have some changes/amendments included in the current version of the IFACP Forwarder Agreement. These multinationals represent more than 49% of CASS value in Canada. By November 30 th, IFACP Program Secretariat received 77% signed IFACP Agreements representing 56% of CASS Sales. 5 out of top 10 big forwarders (based on CASS sales) had signed the agreement but some legal concerns remained, the IFGB agreed that IATA and FIATA legal should schedule a meeting with these Forwarders legal advisors during December, 2017.

6 Background information In December 2017, considering the importance of having the multinational Forwarders joining the new program the IFGB decided it was important to understand and eventually address the concerns raised by the multinationals. The IFGB agreed that Canada would be on hold until the next IFGB conference call scheduled for January 31 st and requested FIATA representatives to submit a proposal to revise the IFACP Forwarder Agreement in order for the IFGB to decide next steps.

7 IFACP Forwarder Agreement FIATA proposal The revised IFACP Forwarder Agreement submitted by FIATA was based on three clarifications: 1. Revisions to the definition of Forwarder to reflect the current way that Forwarders are doing business with the Airlines, sometimes as Principal and sometimes as Agent of the Shipper. The original draft of the Agreement would, in principle, have removed this flexibility by treating every shipment as if it were being handled only on a principal-toprincipal basis, when in fact under current practice it is estimated that a large percentage of forwarder shipments worldwide (including most DG shipments) are handled by the Forwarders as Agent of the Shipper; Forwarder: in the context of this Agreement, is an entity which enters into air waybills as the Shipper on a principal to principal basis, or as the Shipper s Agent, as the case may be The Forwarder shall not indicate or imply in any way that it is an agent of the Carrier, unless authorized by the Carrier in writing and approved by the Shipper;

8 IFACP Forwarder Agreement FIATA proposal 2. Some provisions of the Agreement have been moved to the IFACP Handbook which is the appropriate place for the rules and procedures of the program to be set forth. 3. The proposed revisions have been suggested as a way for the modernization program to go forward, without jeopardizing valuable commercial relationships, and ways of doing business that are working well in today s industry. IFGB meeting March 8-9, Dallas, Texas The airlines rejected the proposal submitted by FIATA and Forwarders. IATA/Airlines have made a counter proposal that, at this time, is under consideration by AFI/FIATA and the Forwarder community.

9 IFACP Global Roll Out Region/Country IFGB members Launch End Date Pilot CA William Gottlieb (Forwarder) 15/Aug/ AU, NZ and South West Pacific William Gottlieb Ricky Yeung (Airline) Brian Wu (Forwarder) 1st phase Hong Kong and Chinese Taipei Markus Muecke (Forwarder) Ricky Yeung Europe (includes EACP, Russia Stefan Amann (Airline) and other European countries) Markus Muecke IN Keshav Tanna (Forwarder) Kirsten de Bruijn (Airline) nd phase Asia Pacific William Gottlieb Pat Donlon (Airline) CN Brian Wu Ricky Yeung LATAM Rudi Sagel (Forwarder) Angela Gaddy (Airline) Middle East Paul Cheetham (Forwarder) Kirsten de Bruijn rd phase Paul Cheetham Africa Randa Elessamy (Airline) Stefan Amann

10 Important to remember Local Financial Criteria being reviewed by an independent global law firm A) Commencing after receiving inputs from FIATA and local associations Very important to receive inputs from local associations (if there are any) B) Draft review C) FIATA and IATA legal approval D) Final review and approval by the IFGB

11 Important to remember IFACP JOINT COUNCILS 10 Regional Joint Councils, 2 for Africa and Middle East 6 members from Forwarders and 6 members from Airlines The Joint Council shall provide the IFGB with recommendations on: i) Standards of staff competence, experience and knowledge of air cargo products; ii) Suitability of cargo handling and processing equipment; iii) Products and services, and iv) Operational and financial criteria for endorsement of IATA-FIATA Freight Forwarders

12 RAME 70 Countries in the region (54 in Africa and 16 in the Middle East) 22 Local Associations in 21 Countries 1,466 FIATA Members in 48 Countries 512 Accredited IATA Agents in 42 Countries 193 FIATA Members in 24 Countries not represented by a Local Association Unknown number of Forwarders in 22 Countries who are neither Members of FIATA, nor represented by a Local Association

13 RAME Local Associations Cameroon Morocco Djibouti Nigeria Egypt Saudi Arabia Ethiopia South Africa Ghana Syria Iran Tanzania x 2 Israel* (IATA Europe) Uganda Jordan UAE Kenya Zambia Lebanon Zimbabwe Mauritius

14 RAME Countries with no FIATA Members Botswana Burkina Faso Burundi Cape Verde Comoros Cyprus* (Europe) Central African Republic Chad Equatorial Guinea Gabon Gambia Guinea-Bissau Lesotho Liberia Mauritania Rwanda Sao Tome & Principe Seychelles Sierra Leone South Sudan Swaziland Turkey* (Europe)

15 RAME IATA Accredited Agents Egypt 125 Bahrain 13* Lebanon 60 Kuwait 11* South Africa 60 Jordon 7 UAE 43 Nigeria 7 Tunisia 40* Oman 7* Morocco 37 Qatar 6* Kenya 19 Senegal 4* Mauritius 15 Syria 4 Saudi Arabia 14 Tanzania 4 * No Local Association

16 RAME IATA Accredited Agents Madagascar 3* Burkina Faso 1* Namibia 3* Burundi 1* Benin 2* Cameroon 1 Cote D Ivoire 2* Congo, DR 1* Ethiopia 2 Gabon 1* Ghana 2 Iran 1 Guinea 2* Malawi 1* Libya 2* Mali 1* Togo 2* Mauritania 1* Uganda 2 Sierra Leone 1* Algeria 1* Zambia 1 Angola 1* Zimbabwe 1

17 RAME IATA Accredited Agents 107 IATA Agents in RAME not represented by Local Associations 5 IATA Agents in Countries with no FIATA members nor Local Associations Burkina Faso Burundi Gabon Mauritania Sierra Leone

18 Joana Nunes Coelho IFACP Governance Manager Paul Cheetham IFGB Member for RAME

19 Thank you! Find out more about the IFACP and FIATA at Schaffhauserstr. 104 Phone: +41 (0) CH-8152 Glattbrugg Fax: +41 (0) Switzerland