The big supply chain disruptor is the regulators, say shippers
Shippers need their supply chain partners to collaborate in order to speed up processes and ...
© Robert Hyrons
By Alex Lennane
The forwarding industry has questioned IATA’s decision to require ’potentially ruinous’ financial securities for some companies wishing to use CASS, its settlement system, as exclusively revealed by The Loadstar yesterday.
New offices, new company names, or new locations – even for established forwarders – could result in the need to give IATA 20% of air cargo sales turnover in deposits, or expensive bank guarantees.
IATA did not respond to The Loadstar’s question on how much money had been lost in the past ...
Comment on this article
Norbert Liebich
July 17, 2024 at 2:18 pmCASS is holding the forwarder at random. One does not get any credit facility in South Africa from any airline without a bank guarantee for the facility you require from that specific airline.
Should you enjoy credit facilities with all the airlines you are working with, you most likely you have bank guarantees of at least 5 fold your monthly turnover in place. In addition you have to furnish IATA with a bank guarantee. Absolutely unreasonable.
Richard Adams Jr
July 17, 2024 at 2:36 pmIata CASS is acting like a bank which they are not! Reason why they were forced to leave Brazil! They faced legal action from some freight forwarders and condemned to stop with these practices because judged understood they were acting like finantial instituitions and they were not. They do not exists in Brazil as an instituition and invoices are generated outside the country. And those freight forwarders kept they rights not to present to them what they were asking.