On 1 July, the revised International Air Transport Association (IATA) Direct Air Waybill (DAWB) framework came into force, fundamentally changing the contractual relationship between airlines and freight forwarders.
IATA's revised DAWB framework has prompted an unusually strong reaction from freight forwarding associations around the world. Their concern is that the new contractual arrangements could transfer legal responsibility for certain shipper failures onto freight forwarders, increasing liability, insurance costs and commercial risk across parts of the air cargo supply chain.
While the changes relate specifically to Direct Air Waybills rather than every airfreight shipment, they raise important questions about where responsibility should sit when something goes wrong.
A fundamental change in liability
Under the revised framework, airlines may now regard the freight forwarder as the primary contracting party rather than simply acting as the shipper's agent.
In practical terms, that means airlines could seek indemnification directly from the forwarder if cargo has been mis-declared, contains concealed dangerous goods or fails to meet packaging requirements, even where those failures originated with the shipper.
The change is particularly significant as air cargo continues to experience strong growth in high-value eCommerce shipments, many of which contain products such as lithium batteries that require strict compliance with dangerous goods regulations.
The concern for freight forwarders is straightforward. They rarely manufacture, pack or load the cargo they move. Yet under the revised framework they may now inherit liabilities arising from decisions made long before the shipment reaches their warehouse.
Why the industry is concerned
Industry associations have reacted strongly.
FIATA has argued that freight forwarders should not be expected to assume contractual obligations for cargo they neither own nor physically control. It has also criticised the speed of implementation, saying the agreed consultation and review process had not been completed before the rules came into force.
The US Airforwarders Association has echoed those concerns, warning members that the changes could expose them to liabilities traditionally carried by the shipper, including packaging failures, concealed dangerous goods and inaccurate cargo declarations.
Adding further uncertainty are reports that not every airline intends to implement the framework in exactly the same way. Instead of one globally consistent process, forwarders may now need to establish different contractual arrangements with individual carriers, creating additional administrative complexity across international air freight networks.
Insurance may no longer fit the risk
Perhaps the greatest concern is insurance.
Traditional freight forwarder liability policies have historically been designed to cover professional negligence, errors and omissions in arranging transport.
They were never intended to provide blanket protection against liabilities created by a shipper's actions.
Insurance specialists have warned that many existing policies may not automatically respond if forwarders are treated as the contractual shipper under the revised DAWB framework. That creates the possibility of coverage gaps, higher premiums and tighter underwriting requirements as insurers reassess the level of exposure.
If logistics providers face greater legal exposure, additional insurance costs and more complex contractual obligations, those costs are likely to flow through the supply chain.
Forwarders will also be expected to carry out more rigorous due diligence before accepting cargo. For shippers, that could mean additional checks, more detailed documentation requirements and longer acceptance processes, particularly for higher-risk commodities.
In reality, the revised framework has the potential to increase costs and administrative burden for everyone involved in the movement of air freight.
Metro can guide you through the changes
Regulatory change should never become an unnecessary commercial risk. Metro's air freight specialists work closely with customers to ensure documentation, dangerous goods compliance, cargo acceptance procedures and insurance considerations are properly managed before shipments enter the airline network.
If you would like to understand how the new DAWB framework could affect your business, EMAIL Andrew Smith, Managing Director to keep your cargo moving with confidence.
