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Freight Forwarders Brace for Expanded Liability Under New IATA Cargo Rules

Freight forwarders are facing significantly increased liability exposure following IATA's July 1 implementation of revised direct airway bill guidelines that shift responsibility for shipping errors to tendering agents.

The rebalancing addresses growth in B2C e-commerce shipments of dangerous goods, particularly lithium batteries. However, logistics providers contend the change was rushed with insufficient industry consultation, leaving forwarders unprepared.

Trade associations warn the new framework creates operational inconsistencies, as liability regimes may vary by airline. Matthew Phillips, chief commercial officer at Breeze, a cargo insurance provider, called the shift "a significant reallocation of risk."

Under the revised rules, forwarders assume greater responsibility for misdeclared goods, concealed dangerous items, and packaging defects. Industry representatives say the compressed timeline and potential for divergent airline interpretations complicate compliance efforts.