The International Air Transport Association (IATA) is set to introduce a major policy change effective July 1, 2026, which will assign liability for claims on direct air waybills (DAWBs) directly to the freight forwarder who books and pays for the shipment. This development stems from IATA's 2017 Air Cargo Program, which aimed to modernize the relationship between airlines and forwarders and establish joint governance. However, the program faced delays primarily due to IATA's initial requirement for forwarders to accept liability on DAWBs, a point of contention that has now been addressed with this upcoming change.
For freight forwarders and operations managers, this change signifies a critical shift in risk exposure. Currently, liability for direct air waybills often rests primarily with the airline. Under the new rule, forwarders will bear direct responsibility for any claims arising from shipments booked under DAWBs. This necessitates a thorough review of existing contracts, insurance policies, and operational protocols to mitigate potential financial risks. Forwarders may need to adjust their internal processes for handling direct bookings, enhance due diligence with carriers, and potentially revise their pricing structures to account for increased liability. It also highlights the importance of robust cargo insurance coverage and clear agreements with their shipper clients regarding liability distribution. This could also lead to a re-evaluation of how forwarders choose between direct and house air waybills, potentially favoring house air waybills to maintain more control over liability.
