Issue 355, July 12, 2002
Danzas AEI Intercontinental has learned recently that the IATA Tariff Coordination Conference plans to change the weight/volume ratio for the shipment of air freight. The new ratio will be 1:5 (1 kg = 5 dm3 or 305 cubic in), changing from the 1:6 ratio that has been used for decades.

Tentatively, the implementation date of this new ratio will be October 1, 2002, though some countries will require government approval first (including the United States, which requires approval from the U.S. Department of Transportation.) For Customers shipping high-volume goods, this new ruling will consequently trigger substantial price increases (possibly up to 20%).

Upon learning this, we immediately voiced our concerns to both our Carriers and the FFE (Freight Forwarder Europe), a formal organization of leading European-based forwarders. We have questioned why such a fundamental change in our industry wasn't allowed to be reviewed by other industry participants (such as freight forwarders, shippers councils, etc. etc.) As such, we have formally protested the issue.

Judging the response from the airlines, it looks like they are determined to go forward with this new ruling, and are planning the implementation as per the IATA decision. We intend to continue our protest of this ruling.

We will keep you apprised if any new information arises.

Sincerely,

Brian Lindholm
Executive V.P. & C.O.O. North America
Danzas AEI Intercontinental

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Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.