U.S. Air Forwarders Association Executive Director David Wirsing issued the following communiqué on July 15, in response to reports of an International air Transport Association (IATA) resolution, which could result in a potential increase in air freight transportation pricing.

BDP is gratified to see the Air Forwarders Association take a firm position on behalf of its member companies and the air shipping public. We will continue to dialog actively with the association, IATA, carrier partners and our customers to promote a fair and appropriate resolution to this issue.

As information becomes available, we will keep you apprised.

Thank you.

Diane Hofman
Vice President – Corporate Operations
BDP International

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July 15, 2002

The IATA Cargo Tariff Coordinating Committee approved a plan proposed in May to adjust the conversion rate for volumetric freight from 6,000 to 5,000 cubic centimeters per kilo effective October, 2002.

Our investigation reveals that this proposal was initiated by the European Commission and has resulted in considerable angst in the global freight forwarding community. The effect of this rate action would be an unacceptable increase in the shippers' costs and the forwarders modus operandi.

The proposed rate action will require government approvals including the US Department of Transportation. The DOT will not be reviewing this proposal prior to September at the earliest. The Air Forwarders Association is taking steps with the authorities to renounce this rate action as exorbitant and an ineffective means of addressing the poor financial health of the air transportation industry.

Thank you for your support.

David E. Wirsing
Executive Director
Air Forwarders Association