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New IATA air waybill effective March 17, 2008
After 18 years, the International Air Transport Association (IATA) announced the release of a new version of the IATA air waybill effective on March 17, 2008.
Cargo Services Conference (CSC) Resolution 600b will be modernized to indicate the “Conditions of Contract” invoking both the Warsaw Convention and Montreal Protocol, which was ratified by the United States in September 1998, taking effect in March 1999. The current IATA air waybill continued to reference only the Warsaw Convention.
The updated IATA air waybill will incorporate Montreal Protocol and the current conditions of contract. Industry members speculate the main reason behind the ratification was to permit air carriers to replace paper air waybills with electronic records for air cargo. The update should improve service, save time and reduce costs. Carriers will now be allowed to fully participate in electronic networks and facilitate the move to a paperless transportation environment.
The Montreal Protocol incorporates several variations to the Warsaw Convention. The primary impact of the Montreal Protocol to the air forwarding industry includes:
- An increase in limitation of liability from $9.07 per pound or $20 per kilogram to 17 Special Drawing Rights (SDR) per kilogram, as
determined by the International Monetary Fund, equating to about $11.53 per pound or $25.40 per kilogram today.
- According to the International Monetary Fund (IMF) Web site, SDR is an international reserve asset, created by the IMF in 1969 to
supplement the existing official reserves of member countries. SDRs are allocated to member countries in proportion to their IMF
quotas. The SDR also serves as the unit of account to the IMF and other international organizations. Its value is based on a basket
of key international currencies and is considered to be a basket of major currencies used in international trade and finance.
Currencies in the basket are the euro, pound sterling, Japanese yen and United States dollar.
- This limit of liability is the maximum limit and “may not be exceeded whatever the circumstances which gave rise to the
liability.”
- The limit of liability may be allocated between the carrier and the shipper on a comparative negligence basis.
- Replaces the language requiring that the “air waybill shall contain certain particulars” such as stopping places or the carrier
cannot limit liability.
IATA encourages the air cargo industry to migrate to the non-color coded air waybills (air waybills printed on plain paper), as stipulated in CSC Resolution 600a. No overlap will occur between the effectiveness of 600b and 600b(II).
Freight forwarders using the updated air waybill should pay close attention to the modified IATA Conditions of Contract. Avalon suggests reviewing the new air waybill with a transportation attorney and we can recommend one for you.
In many cases of liability, courts determine who is at fault. What can you, the logistics specialist, do to protect your liability and your business from lawsuits?
Avalon Risk Management, Inc. offers a Combined Transit Liability (CTL) program to provide the coverage needed to protect businesses from costly errors and cargo claims. The CTL provides 11 customizable options including Cargo Legal Liability, which offers protection for loss and damage to cargo shipped under your house bill of lading, air waybill, freight receipt or even while acting as an agent. If sued by customers or their subrogating insurers, coverage includes defense costs and settlement amounts you are legally obligated to pay under your bill of lading and contract terms.
For further information, contact Bridgette Collins, Product Manager at Avalon’s corporate headquarters. Bridgette Collins can be reached at her direct line (847) 700-8124 or at
bacollins@avalonrisk.com. Please do not hesitate to contact one of our nine regional offices throughout the United States.
To view a directory of Avalon’s office locations, please
visit our Web site at
www.avalonrisk.com.
Source: www.iata.org,
www.imf.org
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