Global Initiatives in Air Cargo - FIATA, IATA and Local Perspective

Transcription

1 AIR CARGO Global Initiatives in Air Cargo - FIATA, IATA and Local Perspective Panel Discussion Moderator Paul Golland, Chair AFIF & Senior Committee Member FIATA Air Freight Institute Matteo Zanarini, IATA Area Manager SW Pacific Nigel Chynoweth, Cargo Manager Australia Cathay Pacific Beau Paine, Regional Vice President, Cargo Australia, Menzies Aviation FIATA, IATA initiatives and the Local Perspective e-awb IATA moves to expand carrier take up Cathay Pacific & Menzies Aviation experience in handling e-awb

2 IATA FIATA AIR CARGO PROGRAMME OR IFACP

3 History of IATA/FIATA resolutions There are currently 39 sets of Financial criteria around the world dictating how Freight forwarders deal with IATA In the past the relationship was the forwarder acting as agent of the airline but that gradually changed over the years In some parts of the world IATA still insists on Annual Financial statements from its agents The final decision on any matters sits with the Airlines This is all totally unfair and required amending

4 History of IATA/FIATA resolutions Over the past five years IATA & FIATA have been working on a new Programme that will change the way in which we do business with each other. This new Programme has being launched in 2017 in Canada and will be introduced into Australia/New Zealand late in The main differences are as follows: Programme will be run by the IATA FIATA Governing Body (IFGB) which consists of 6 forwarders and six airlines. This body will make all final decisions. Below this will be Local working groups (LWG) in each area. Australian, New Zealand and Pacific Islands will have their own LWG along with various other zones. There will be one set of Financial Criteria in this program and CASS will remain outside the Programme controlled by IATA.

5 IATA/FIATA Air Cargo Programme Local Working Groups These will be made up of carriers and forwarders in equal numbers. They will be non-voting but recommendations can be sent to the IFGB regardless of if one side supports or reject said recommendation. It is likely the meetings will be held in Sydney.

6 IATA/FIATA Air Cargo Programme How does one join the system? If you are an existing IATA agent it will be as simple as completing a form to agree to switch to the new system. It is open to everyone IATA agents and CASS associates. If an agent decides to opt out then they will have to negotiate terms with each airline and become a Cass associate agent

7 IATA/FIATA Air Cargo Programme Issues with the programme? Financial Criteria and the need for Annual Financial reviews Australia and New Zealand are totally opposed to the need for AFR remaining in the new system. AFIF/CBFCA/CBAFF have paid for legal advice which suggests we have a good case for abolition should this matter go to court. AFIF wrote to the IFCC who supported the decision(twice) to have them removed but was again vetoed by airlines. Canada ran into this issue and has managed to have the need for AFD suspended whilst it is looked at. We hope for the same when the programme is introduced here.

8 IATA/FIATA Air Cargo Programme Issues with the programme? Who is responsible on direct shipments? IATA says Forwarder only not the actual shipper. Thus there is a need for a re-write of forwarder agreement. At the minute IATA and FIATA cannot agree on this wording

9 Updates In January 2018, FIATA submitted new proposals for several changes to the IFACP Agreement, including to insert the role of the forwarder as agent of the shipper. At the recent IFGB 4th meeting (8-9 March), these late amendments to the long-agreed IFACP Agreement were not supported by the airline representatives. Therefore the IFACP status is: the Canada pilot was on hold, due to lack of support from multinationals, who cannot accept the IFACP Forwarder Agreement in its current (agreed) form, the IFACP global roll-out was therefore also on-hold

10 Updates the raised concerns relate to commercial relations and the variety of roles of the forwarder (i.e. as shipper s agent or carrier s agent in addition to as shipper), all of which were debated at length before reaching a common position during IFACP development meetings FIATA and multi-national forwarders now propose IFGB reconsider the Forwarder Agreement to include the role of the forwarder as shipper s agent in the IFACP Agreement, with other additional conditions, IFGB Airlines consider these proposals as substantial alternations to the agreed IFACP Agreement and its terms. They would only accept including the role of shipper s agent in the Agreement together with the additional conditions, provided certain obligations when acting as a shipper s agent were also fully clarified. A counter-proposal was developed and presented by IATA and IFGB Airlines during the last IFGB meeting. FIATA confirmed they would revert with their feedback on this by end May 2018.

11 More Updates The IFGB decided in Dallas to go ahead with the pending LFC reviews. Jones Day sent legal opinions on 28th March but to this date no response from them. FIATA stressed to Jones Day that they are working for both sides as it was felt their original opinion was slated towards IATA

12 Questions?

13 E-AWB FACTS

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19 Facts about e-awb as at March 2018 Target for December % Actual position March % Australia ranked 17 th Sydney ranked 41 st Melbourne ranked 43 rd Asia Pacific 176,451-3 rd highest region Top airlines CX/QR/LH/SQ/KE/KL/EK

20 QUESTIONS