With the implementation of the new IATA-FIATA Air Cargo Program, the relationship between freight forwarder and airline is transforming.
According to the International Air Transport Association (IATA), the air cargo industry accounts for over 35% of global trade. Aviation makes the transportation of pharmaceuticals, live animals, electronic devices, and express delivery services possible across the globe.
The role of IATA has been of great importance to ensure the security, profitability and sustainability of the supply chain. However, as global shipping demands and needs of the industry accelerate, so too does the need for change between cargo and airline.
Aviation Pros announced on August 15th, 2017, that “the new IATA FIATA Air Cargo Program has been launched in Canada”. This improved program will meet industry needs in addition to transitioning the relationship between freight forwarders and airlines.
TA FIATA Air Cargo Program
Canada remains a strong leader in the import and export of goods, and even more so when it comes to air cargo transport. To support efficiency and production, IATA aims to:
- Develop global standards and tools
- Offer financial services and industry solutions
- Drive transformation projects
- Create partnerships
- Run campaigns, advocacy and outreach activities
In collaboration with the International Federation of Freight Forwarders’ Association (FIATA), IATA has decided to reengineer the way shippers interact with airlines.
In the past freight forwarders acted as ‘selling agents’ who provided opportunity to airlines, however, as the needs of the industry increased we now see a shift. The Air Cargo Program has been restructured and improved to consider the freight forwarder as a customer of the airlines, a movement that will better allocate responsibilities. There are four key benefits outlined by IATA as a result of this newly improved program, however, one in particular aligns with the global phenomenon of ecommerce. The IATA states:
Working together and establishing joint IATA-FIATA Air Cargo Program increases the potential to achieve key industry goals and common industry initiatives, include e-cargo priorities
We see now more than ever that the integration of the Internet of Things (IoT) and transportation is becoming necessary to move productivity and sustainability forward. The 2017 IATA Cargo Strategy explains the growing need for the air cargo industry to improve efficiency. For instance, moving from paper bill to electronic airway bills will help improve quality of service and reduce errors. Progressive changes, fostered by the new Air Cargo Program, is a representation of Canada adopting a modern approach to global exchange.
Modernization of the Air Cargo Industry
On August 16th, 2017, Morai Logistics announced that the launch of the first full-automated Robo-boat will set sail by 2020. We see modernization taking many routes, and with the air cargo industry we can only imagine the heights the industry will go. E-freight is a great example of the move forward with technology. Writer, Shreya Bhattacharya, states that an ‘e-freight route network’ initiative will not only simplify processes, but will offer transparency following the reduction of delays and inaccuracies.
IATA outlines 10 industry priorities they believe will help move the industry forward. Digitization is included and described as “a key enabler for the development of new innovative services and solutions.” The motivation to modernize the Air Cargo Program is evidence that the industry is looking long term to identify and ensure a smooth and profitable future.
The safe and efficient transport of goods across the globe is facilitated by trusted airlines and freight forwarders. The New IATA-FIATA Air Cargo Program is a global transition to modernizing the way we fly. The benefits are guaranteed to ensure productivity and sustainability and the satisfaction of freight forwarder, airlines and customers.
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