Air Freight Glossary – International Airfreight terms
ACL: Allowable Cabin Load. The maximum payload (cargo capacity) of an airplane through a certain route and under certain specific operation conditions.
Act of God: also Force majeure. A situation where goods are damaged by forces beyond human control, e.g., natural disasters like floods and earthquakes.
Advance Arrangement: The contact between shipper and carrier prior to shipping process to determine appropriate handling and available aircraft.
AEV: Articles of Extraordinary Value. Commodities that are identified as goods of high value
Agent: An individual or organization approved to act in place of another person or organization.
Airfreight: transporting goods by air using passenger or cargo aircraft.
Airport to Airport: Airfreight service for moving goods from the airport of origin to the destination airport without pickup and delivery services.
ATA: Actual Time of Arrival, Airport-To-Airport.
ATD: Actual Time of Departure.
AWB: Air Waybill. A non-negotiable document issued by a carrier after receiving a shipment showing important information about the shipment and delivery instructions.
Bill of Lading: a negotiable document issued by an air freight carrier showing the cargo receipt for shipping. It is often abbreviated as BOL, BoL, BL, or B/L.
Bonded Warehouse: Premises for storing or manufacturing goods while deferring payment of duty until the goods are released, or customs duties are paid.
Break Bulk (B/B): The process of disassembling or unpacking a consolidated shipment for delivery to customers or reshipping.
Bulk Cargo: Loose air cargo not loaded in aircraft containers or pallets.
Bulk Cargo Carts: Mobile vehicles that transfer bulk cargo from the aircraft to handling terminals or other airports.
Cargo: also Goods. Any property moved from one place to another, excluding mail and passenger luggage.
Cargo Aircraft: also Freighter, or All-cargo Aircraft. A specialized airplane for carrying cargo in its main and lower decks.
Cargo Agent: An agent assigned by an airline and paid in commission to solicit and process international airfreight for shipments.
Cargo Loader: Mobile equipment for loading and unloading ULDs on aircraft.
Carnet: A document allowing the holder to transport goods into a foreign country for exhibition or demonstration purposes without paying the required import duties
Carriage: Movement of goods by air.
Carrier: An individual or business that transports goods for other individuals and/or businesses. A carrier is liable for goods lost or damaged during transportation.
Cartage Agent: Ground operator that provides pickup and delivery services in locations not served directly by air carriers
Chargeable Weight: A weight of a shipment used to determine the corresponding air freight charges.
Charges Collect: also Freight Collect, or Charges Forward. Charges for pickup and delivery transport collect from the consignee.
Charter Service: A temporary hiring of an aircraft to transport passengers and cargo.
COD: Collect On Delivery. The transportation service whereby the purchase price of goods is paid to the carrier upon delivery by the receiver of the goods.
COMAT: Company-Owned Material. The property of the airline that is carried as cargo on its airplane.
Combo Aircraft: also Combi Aircraft. An airplane designed to hold passengers and cargo in its main deck.
Commercial Invoice: A document describing a shipment and its corresponding value
Commodity: Description of a shipment of goods.
Compartment: A space in an airplane for holding cargo.
Conditions of Carriage: The terms and conditions of a carrier concerning Carriage.
Conditions of Contract: The terms and conditions indicated on the AWB or the shipper’s consent regarding the use of shipment records.
Consignee: The recipient of the transported goods as stated on the AWB or shipment record
Consignment: Delivery of goods from an exporter (or Consignor) to an agent (or consignee). The agent sells the goods for a commission, and the exporter retains ownership until the sale of the goods.
Consignor: The party contracting with the carrier to transport goods, usually the shipper.
Consolidation: Assembling separate goods into one shipment under one AWB from place to place.
Container Rate: The rate of transporting an entire container or ULD at a fixed price irrespective of its content(s) weight.
Contoured ULD: A ULD designed or modified to fit the hold of an airplane to make use of all the available space.
Convertible Aircraft: An aircraft which can be repurposed from all-passenger to all-cargo, or with various arrangements of passenger and cargo spaces
Courier: An attendant accompanying cargo shipments (s), such as a groom or vet for rare horses or other live animals.
Customs: The government authority/service responsible for enforcing customs laws and collecting import and export duties imposed by a country.
Customs Broker: An individual or company licensed by the government of a country to perform Customs business transactions on behalf of other individuals or companies. These include entry and valuation of goods and payment of Customs duties.
Customs Clearance: Release of cargo by Customs subject to the presentation of required documents and payment of imposed duties.
Customs Invoice: A document for verifying and describing a shipment of goods and showing relevant information about the goods.
CWT: Hundredweight (100 pounds). The standard unit for determining cargo rates, other than rates for specified containers.
Damage: Partial or complete harm to shipment or part of a shipment.
Dangerous Goods: Goods classified by the UN and IATA as potentially harmful to air transport health, safety, and property.
DDP: Delivery Duty Paid. A delivery agreement in which the seller is liable for all potential risks and costs until the buyer receives the cargo at the destination.
DDU: Delivery Duty Unpaid. A delivery agreement in which the buyer bears all the costs for importing the goods.
Declared Value for Carriage: The value of goods declared by the shipper for determining charges or liable costs in the event of loss or damage of goods
Declared Value for Customs: The selling price of contents of a shipment or cost of replacement in the case of non-resale goods
Deferred Air Freight: Goods transported at lower service level and lower charge than in standard air freight
Deferred Rate: A lower rate than standard shipping rate, often in less than standard level if air freight service
Demurrage: Holding container(s) of a carrier beyond an allotted time period for loading and unloading of shipment units, usually accompanied by accruing charges
Destination: The final point of delivered goods, usually into the hands of a customer or end user
DGR: Dangerous Goods Regulations. Guidelines for packaging, transporting and dealing with dangerous goods.
Dimension: The measured specifications of a shipment to calculate charges.
Door to Door (or Dock to Dock): A shipping arrangement that ensures goods move from sender to customer.
Drawback: Whole or partial refund of customs duties imposed on imported goods that are later exported
Duty: Import tax levied on goods by Customs based on weight, quantity, value, or the combination of these factors.
EDI: Electronic Data Interchange. A computerized system for communicating relevant shipment information.
EDIFACT: Electronic Data Interchange For Administration, Commerce, and Transport.
ETA: Estimated Time of Arrival.
ETD: Estimated Time of Departure.
Exception Ratings: Higher than normal rates set for commodities that require special handling
Export License: also Export Permit. A document permitting the exportation of certain goods to designated countries.
Express: Small parcels usually shipped overnight.
Foreign Trade Zone: also Free Trade Zone. A port of entry for non-prohibited goods without the payment of customs duty.
Free Domicile: A situation whereby the shipper pays all the transportation charges and any imposed duties and/or taxes.
Freight: Goods, items, or commodities transported by air. Also, the amount paid for this form of transport.
Freight Carriage…paid to…: Payment for the delivery of goods to a named destination.
Freight Carriage…and Insurance paid to…: Payment for the delivery of goods to a named destination, with added insurance premium in the case of loss of or damage to goods.
Freighter: see Cargo Aircraft.
Freight Forwarder: also Forwarder, Forwarding Agent. An individual or company appointed by a shipper to process and arrange the transport and delivery of shipment.
FTL: Full Truck Load. Shipment designed to fill standard freight containers.
Gateway: Major airport or point of customs clearance
General Cargo: All goods in the aircraft except special cargo
GO: General Order. Any goods not received within a specified time of the carrier’s entry that is stored at the risk and expense of the importer.
Gross Weight: The entire shipment weight, this include weights of the container and packaging material.
Handling: The process of preparing and transporting air cargo.
Harmonized System: A system of classifying goods in international trade
HAWB: House Air Waybill. A document presented by a freight forwarder to a carrier after receiving a shipment.
High Capacity Aircraft: also Wide-bodied Aircraft. An aircraft suitable for heavy-duty air freight.
IATA: International Air Transport Association.
IATA Cargo Agent: An IATA-approved forwarder/broker capable of performing operations related to air freight.
IATA Designator: Two-character IATA identification of any airline used in air waybills, reservations, tickets, tariffs, and timetables.
ICAO: International Civil Aviation Organization.
Import License: also Import Permit. A document required and issued by some countries for conducting customs clearance and approving imported goods.
Import Restrictions: Control measures on the importation of goods, including imposing tariffs and duties and prohibiting selected categories of goods.
In Bond: Movement of cargo without customs clearance at the airport to an inland Customs point for clearance.
Incoterms: Codes maintained by the International Chamber of Commerce (ICC) as regards incurred costs in foreign trade contracts
Insurance Certificate: Certificate of assurance covering loss or damage of transported goods.
Integrated Carrier: A carrier that performs door-to-door cargo transport with its own airplanes and trucks, usually under a single AWB
Interline Carriage: also Interline. Transport of goods across different routes by multiple air carriers.
Intermediate Consignee: A forwarding agent, bank, or any other intermediary that acts as an agent in a foreign country to deliver goods to an exporter, purchaser, or ultimate consignee.
Intermodal: Transport of goods via multiple means, i.e., ship, airplane, overland, and railway
Intermodal Capability: Ability of a shipment to be moved across various modes of transport.
Intermodal Container: Shipping container designed to fit multiple modes of transport
Internal Fittings: A means of securing air cargo inside a container.
ISO: International Standards Organization.
JIT: Just In Time. The immediate movement and delivery of raw material, components, parts, and work-in-progress when needed instead of occupying costly warehouse space.
Lay Order: The period during which a shipment may remain unloaded beyond the period of demurrage without any action taken or implied costs.
LD3: Lower Deck type 3 container. The most common type of shipping container used in passenger aircraft.
Loading Gauge: also Template. A framework for checking and ensuring a pallet load fits in the cargo hold of an airplane.
Loose cargo: also Loose Shipment. Air cargo loaded as separate packages and delivered in separate pieces to the destination.
Lower deck: also Belly, Lower Hold, or Lower Lobe. The section below the Main Deck in an aircraft.
Lower Deck Container/Pallet: A ULD designed to fit the lower deck of an airplane.
LTL: Less than Truck Load. A shipment that is not enough to fill up a standard shipping container.
Main Deck: The area in an aircraft that holds the major portion of air cargo
Main Deck Container/Pallet: A ULD that occupies the main deck.
Maximum Gross Payload: The maximum weight allowed and carried on an airplane.
MAWB: Master Air Waybill. A document issued by a carrier
NCV: No Customs Value. Goods having no declared value on the AWB for Customs purposes.
Net Weight: The actual weight of a shipment, excluding its packaging.
No Show Cargo: Reserved cargo space that is neither used nor canceled.
NVD: No Value Declared for Carriage. Goods having no value declared to determine charges or limit of liability costs in the event of loss or damage.
Origin: The starting point of a shipment.
Pallet: A platform with specific dimensions for assembling and securing goods prior to loading on an airplane
Pallet Net: Webbing or rope material for securing and restraining a pallet load.
Part Shipment: A shipment and transported and delivered in multiple parts.
Passenger Aircraft: An airplane designed to carry passengers in the main (or upper) deck and hold cargo in the lower compartment.
POD: Proof of Delivery, Port of Discharge.
Pro Forma Invoice: An invoice sent prior to the supply of goods.
Rate: The amount charged per unit volume of goods.
Rerouting: Transporting goods through an alternate route different from the one specified on the AWB.
Reservation: also Booking.
Restricted Articles: Special cargo form of dangerous goods.
RFS: Road Feeder Service. Overland transportation arranged by a carrier to/from a gateway to another airport.
Routing: The air freight route as originally stated in the AWB or shipment record.
Shipment: Good(s) handed over to a carrier by a shipper and moved on one AWB or shipment record to a designated address.
Shipper: also Consignor. The party who originates the shipment of goods, usually by purchase for exportation.
Shipping Mark: The letters, numbers, or other symbols posted on the outside of cargo for identification purposes.
Shipping Weight: The gross weight of shipment (in kilograms).
Short-shipped: Cargo stated in the airplane manifest but not loaded into the aircraft.
Special Cargo: Shipment requiring special handling procedures.
STA/STD: Scheduled Time of Arrival/Departure.
Surcharge: Additional or extra charges.
TACT: The Air Cargo Tariff. Rules, regulations, and rates published for international air shipments.
Tare Weight: The weight of a ULD and tie-down materials excluding the weight of the enclosed goods.
Tariff: The applicable rates, charges, and regulations of an air carrier for the movement of goods.
Terminals: The opposite ends of a carrier line, usually airports.
Tracing/Tracking: A system of following a shipment from origin to destination
Transfer Cargo: Air cargo transported to a point by one carrier and to another point by another carrier.
Transit: An intermediary stopping point en route where cargo stays onboard.
Transshipment: Moving air freight through an intermediate country before arriving at the country of final destination.
ULD: Unit Load Device. Any type of container, a container with integral pallet, aircraft container, or aircraft pallet to transport goods on an aircraft.
Ultimate Consignee: The recipient, such as an individual or business, of transported goods for the proposed end-use or consumption
VAL: Valuable Cargo. Specified high-value shipments that require advance arrangement and special handling procedures
Value for Customs Purposes Only: Value of shipment determined by the manufacturer or stated by the importer, but not according to Customs evaluation.
Weight Charge: Charges calculated based on the amount of weight carried by aircraft.
Without Reserve: The ability of a shipper’s agent or representative to decide on behalf of the represented party.
XPS: Priority Small Package.
3PL: Third-Party Logistics provider