Code vs. No-Code -28Oct24

According to IATA more than 15.000 forwarders and more than 200 airlines are participating in the Cargo Agency Program. Roughly 60% of forwarders are registered as accredited agents/intermediaries and 40% are CASS Associates.

Registered forwarders get a code which will give them access to CASS – Cargo Accounts Settlement System if they meet the requirements set forth by the participating airlines through the IATA mechanism. At the same time airlines will follow their own and individual due diligence to grant a customer account to a forwarder and stock of Air Waybills (AWB) for issuance of shipments.

Without an active IATA code, forwarders will struggle to do business with airlines. Airlines will not accept shipments from forwarders and will put them on a cash basis and revoke their AWB stock.  Forwarders may find them in a critical situation following the deactivation of the code. Even more so when this happens because of unawareness, lack of information and unclear communication regarding rules, regulations and requirements.

In the era of AI, one may say that codes will become obsolete. That’s pretty much the future. It does not mean that in a ¨No-Code world¨ financial risk management will go away. There will be other means of doing it. For now, having an active IATA code equals business continuity for your air cargo.  

At RR Consulting we are best suited to help you. You can trust us.