The US Airforwarders Association (AfA) is the latest group to issue a warning over the impact of IATA’s changes to the Direct Air Waybill framework.
The US Association has advised freight forwarders to confirm contractual arrangements with every airline and review insurance cover as the revised IATA Direct Air Waybill (DAWB) framework comes into effect.
The AfA said that the revised framework, which came into effect on 1 July, could alter the contractual relationship between airlines, shippers, and freight forwarders, “potentially leaving forwarders responsible for obligations traditionally borne by the shipper, including cargo misdeclarations, concealed dangerous goods, and packaging failures”.
Global freight forwarder association FIATA has also expressed concern over the new rules and is seeking to delay implementation.
“Freight forwarders should not be expected to assume liability for cargo they neither own, pack, nor control,” said Brandon Fried, executive director, AfA.
“The revised framework risks shifting responsibility away from the party creating and controlling the risk and onto an intermediary whose role has not fundamentally changed, creating potentially significant legal, operational, and insurance consequences for freight forwarders.”
The AfA is advising members to obtain written confirmation from every airline on which contractual framework will apply to their shipments before tendering cargo, and to consult their insurers to determine whether their existing liability policies remain appropriate under the revised arrangements.
“Forwarder liability insurance is designed around the services freight forwarders actually perform, not around assuming shipper obligations,” said Fried.
“Businesses should not assume their existing cover will automatically respond if contractual liability changes. Smaller and medium-sized freight forwarders, in particular, should carefully review both their contractual position and insurance arrangements before accepting shipments under the revised framework.”
The AfA is also concerned by reports that implementation may differ between airlines, creating additional uncertainty for forwarders operating across multiple carrier networks.
“The possibility that all airlines may not implement these changes in the same way creates unnecessary confusion at a time when the industry needs clarity,” said Fried.
IATA argues that under DAWBs, which are largely used for high-risk shipments, forwarders tender cargo to the airlines on behalf of the shipper, meaning they are acting as agents of the shippers and not agents of the airlines.
“Airlines have essentially entered into a contract with an entity they do not know and have not performed due diligence, anti-money laundering or sanctions and embargo compliance checks,” said Carlos Tornero, IATA’s director of legal services, in an article on the topic.
DAWB implies that forwarders are merely the shipper’s agent, and so if things go wrong, such as a lithium battery fire, airlines must seek recourse against the original shipper — effectively, an unknown party, IATA argues.
The International Forwarders and Customers Brokers Association of Australia (IFCBAA) said that it believed FIATA has acted far too late in the process.
“At this advanced stage, expressions of concern and requests for clarification, while necessary, may no longer be sufficient to protect the interests of freight forwarders globally,” it said.
“The issue has moved beyond procedural dissatisfaction and into a matter requiring urgent legal intervention if the industry is to avoid being forced into a new framework without adequate review, consensus, or legal certainty.”
The association called on FIATA to urgently commence legal action in the Swiss courts to challenge the new rules and seek injunctive relief.
