U.S. Association advises freight forwarders to confirm contractual arrangements with every airline and review insurance cover as revised IATA Direct Air Waybill framework comes into effect
Airforwarders Association (AfA) has expressed serious concern over changes to the International Air Transport Association’s (IATA) Direct Air Waybill (DAWB) framework, warning that freight forwarders could face significant new legal and insurance liabilities.
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.
“Freight forwarders should not be expected to assume liability for cargo they neither own, pack, nor control,” said Brandon Fried, Executive Director, Airforwarders Association.
“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.”
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.”
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.
“We strongly encourage freight forwarders to seek written confirmation from every airline regarding the contractual framework being applied, rather than assuming a consistent approach across the market.”
Fried stressed that AfA supports industry efforts to strengthen air cargo safety, including measures to address the transport of dangerous goods, but believes any change that fundamentally alters contractual liability should follow full industry consultation and be accompanied by clear legal and operational guidance.
