The International Air Transport Association (IATA) has postponed implementing changes to its conversion rate for calculating the volumetric weight of freight until October 2003.

The controversial proposal changes the volume-to-weight relationship from 6,000 cubic centimeters per paid kilogram to 5,000 cubic centimeters per paid kilogram, resulting in an overall rate increase of approximately 20%. The change came under great criticism from shippers' groups, including the National Industrial Transportation League (NITL). A statement from the NITL said it is, "effectively a substantial rate increase, being adopted by IATA on just four months notice to the shipping public, and coming at a time when shippers… are suffering from continued economic weakness in the world economy." The International Federation of Freight Forwarders Associations (FIATA) requested a reconsideration of the amended resolution and its intended effective date.

The original implementation date was set for Oct. 1, 2002, but IATA cited "outstanding government approvals" as the reason for pushing the implementation back to October 2003.

dhannon@reedbusiness.com