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5th December 1991
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Which of the following most accurately describes the problem?

• A scheme to protect hauliers from bankruptcy if freight forwarders go out of business could be launched next year.

The British International Freight Association, which represents 850 forwarders, plans to introduce a bond to safeguard operators who work for its members.

Initially, it will apply to air freight, but if it is a success the association will look at transferring the scheme to road transport, says BIFA trade division manager Colin Beaumont.

The plan is in response to growing criticism from hauliers who work for forwarders and do not get paid because the forwarder goes out of business.

The air freight scheme, to be launched early next year, would ensure that carriers get paid if a forwarder goes into receivership or liquidation. It is relatively easy to set up the scheme for the air freight sector as all forwarders currently pay into a central point, known as CASS, which in turn pays the carrier.

"It will be much harder to devise a scheme for road freight," says BIFA director-general Jim White. But the extension of the bond scheme to other modes "would mark the coming of age of our industry", he says.

BIFA is currently tightening its membership criteria and is demanding to see the accounts of companies which are causing concern. Members also have to prove they have liability cover each year, which provides significant protection for hauliers.

"We do not take everyone who applies for membership," says White, "As I understand it, there are no criteria for membership of the Road Haulage Association. You pay your fees, and you're in."

However, he sympathises with ownerdrivers doing international work for the first time: "Until you


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