IATA DAWB Changes Force Forwarders to Reassess Liability Insurance

IATA's revised Direct Air Waybill (DAWB) framework, which became effective on 1 July, is creating significant insurance concerns within the freight forwarding community. The changes appear to shift certain liability burdens traditionally borne by shippers toward freight forwarders, raising questions about whether existing insurance policies adequately cover these new exposures. Industry bodies including FIATA and regional forwarding associations have voiced concerns that forwarders may face unprotected liability gaps.

This policy shift represents a structural change to liability allocation in air freight documentation and represents a meaningful operational and financial risk for forwarding firms. The concern extends beyond a single jurisdiction or trade lane, IATA's global influence means the DAWB changes affect forwarders worldwide. Insurance providers are now scrambling to understand the full scope of new risks, and many forwarders report that their current policies may not adequately address liabilities that fall under the new framework.

For supply chain professionals, particularly those managing freight forwarding operations or air cargo logistics, this development demands immediate attention. Companies must conduct comprehensive audits of existing insurance policies, understand precisely which liabilities now fall on forwarders under the new DAWB rules, and work with insurance brokers to secure appropriate coverage amendments or new policies. The lack of clarity on legal implications adds additional urgency, waiting for clarity may leave firms exposed during a critical transition period.