Industry body opposes redefining of airfreight volume
Thursday, 07 November 2002, 20:30 IST
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NEW DELHI: A leading Indian industry body has urged the government against ratifying the International Air Transport Association (IATA) proposal for redefining airfreight volume. Under IATA Resolution 502, which governs chargeability according to volume, one kilogram for airfreight was reckoned as 6,000 cu cm or 366 cu inches of parcel. But in a move sponsored by British Airways, IATA has unilaterally moved to reduce this ratio from 6,000 cu cm to 5,000 cu cm. The move by the international aviation body to implement the change from October 1 this year could not succeed, as any change to an IATA resolution needed the ratification of individual countries. "As a result of stiff opposition from all the users of airfreight, IATA could not succeed in getting this change ratified by any country," the Associated Chambers of Commerce and Industry of India (Assocham) said Wednesday. In a representation to the commerce ministry, the chairman of the international committee of Assocham, Anil Agarwal, has suggested early introduction of sufficient safeguards to keep air exports competitive and urged the need to oppose moves by IATA to implement the new chargeability from October 1, 2003. This change directly translates into a significant hike of around 20 percent in airfreight costs as the density of the air cargo from India is quite low, according to Assocham. "This hike may render the export uncompetitive especially in the traditional textile and emerging floriculture exports," said Agarwal. In view of the gravity of IATA proposal, the Federation of Indian Export Organizations (FIEO) is also approaching the government not to support the move. The IATA move to defer implementation has been influenced by the European Shippers Council's opposition on the grounds that its members need advance notice to change their packing specifications to meet the new criteria. Airlines in Europe are hopeful that after one year, they would be better placed to gain their respective government's ratification to Resolution 502. The concerns of developing nations do not concur with the above arguments, said Agarwal. The unit value of Indian air exports is quite low as the cargo means primarily raw material or intermediate goods. About a decade ago, when IATA amended the Resolution 502 from 7,000 cu cm to 6,000 cu cm to a kilo, India was the only nation that opposed its ratification. India had ruled that it would apply 7,000 cu cm to a kilo of floriculture exports and not 6,000 cu cm, which is still valid.
Source: IANS
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