FIATA, EUROPEAN SHIPPERS CRITICIZE REVISED IATA TARIFF STANDARD

FIATA, EUROPEAN SHIPPERS CRITICIZE REVISED IATA TARIFF STANDARD    The International Federation of Freight Forwarders Associations, better known as FIATA, and the European Shippers’ Council, have criticized a decision of the association of airlines, the International Air Transport Association, to change the IATA standard for setting rates of volume cargo, the so-called density rules.
   The airlines association wants to change the basis of air freight tariffs from one metric ton per 6 cubic meters to one ton per 5 cubic meters. The change of the tariff standard, subject to approval of various regulatory authorities, would become effective on Oct. and could increase freight rates by more than 20 percent.
   Sandro Consoli, manager at the International Federation of Freight Forwarders Associations, said that IATA should give shippers more advance notice of the change.
   While not opposed to revised tariff decisions made by airlines, Consoli warned that air freight shippers will consider re-routing cargo to cheaper transportation modes.
   “Shippers feel that these measures are designed to artificially boost tariffs,” the European Shippers’ Council said, commenting on the IATA tariff change.
   The shippers’ body “strongly protests against this unilateral decision taken by    IATA carriers and are in particular concerned about the lack of consultation with shippers,” it added.
   If this measure is implemented, volume-based cargo will suffer a rate increase of more than 20 percent,. resulting in a $5 billion higher global freight bill, the European Shippers Council said.
   The Brussels-based group said that it condemns “any form of collusion or cartel-like behavior from carriers.” It asked IATA to withdraw its decision.