Revised airfreight formula is doubtful starter

Uncertainty over October 1 implementation of new volume:weight ratio Alan Peat THERE IS still uncertainty as to whether the airlines' revised volume: weight ratio for low density cargoes will be universally applied on October 1, according to Safcor Panalpina's internal auditor, Geoff Epstein. This followed a unilateral decision by all the International Air Transport Association (IATA) member airlines Ð most of the major international carriers Ð to propose a change in the low-density cargo rule from 6 000cubic centimetres (cc) to 5 000cc. Shippers of this cargo type could face freight hikes of up to 20% because of this, Epstein added. "But," he said, "changes of this type are subject to local Government and regulatory approval, and this revision has attracted fierce opposition in a number of countries." The local forwarders' body, the SA Association of Freight Forwarders (SAAFF), and its British and French counterparts have already condemned the IATA decision. SAAFF, for example, is pushing for it to be lodged with the African Union (AU) for rejection because of the "already tough rates faced by African air cargoes". The British association has condemned it as "cartel action at its very worst". The doubt about the October 1 application date expressed by Epstein was repeated by SAA's financial executive, George Mellett, who said it was possible that the increase might be postponed till the new year. This, he added, because the US transport authorities have also not yet agreed to the new IATA regulation.