The International Air Transport Association and the International Federation of Freight Forwarders Associations have signed an agreement to replace the IATA Cargo Agency Program with the IATA-FIATA Air Cargo Program.

“This is the result of four years of hard work to modernize the relationship between freight forwarders and airlines,” said Aleks Popovich, senior vice president of financial and distribution services at IATA. “The IFACP also provides a framework to ensure that industry standards are relevant, pragmatic and fit for purpose. These standards cover the endorsement of freight forwarders and more broadly the safe, secure and efficient transportation of air cargo shipments.”

Rudi Sagel, chairman of FIATA’s Airfreight Institute, said that the old cargo agency programme was in need of replacement.

“I am really pleased that FIATA and IATA have joined forces to provide our industry with a new, modern programme and a framework for operation that benefits both airlines and freight forwarders,” said Sagel. “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. These include regulatory compliance, safety and security and the introduction of new technologies. This agreement paves the way for a more successful future for the fastest and most fascinating mode of international transport.”

According to IATA, freight forwarders have evolved from being selling agents for airlines to being their purchasing customers, which is why the new programme moves decision-making on the rules governing the airline-forwarder relationship away from an airline-led conference to the IATA-FIATA Governance Board, which is jointly managed by airlines and forwarders.

The new programme will begin with a phased rollout in early 2017 in Canada, with a full global rollout to be completed by the end of 2018, according to IATA.