ABSTRACT
The principle that it is cheaper for airlines to “farm out” both cargo handling and cargo sales has long been a part of the airline industry. A number of larger consolidators (forwarder/contracting carriers) have also adopted this principle. The liability issue between airlines and consolidators and their GHAs is controlled by a more or less standard IATA form of contract. It has been undergoing some evolution in recent years, but the basic principles have remained unchanged from the early days. Common-sense results have been obtained where the claimant has conceded a third of the claim; the airline or consolidator and the agent have each contributed a third in payment to the claimant; and high claims handling costs have been avoided.
