Understanding air-freight terminology is crucial for anyone involved in international logistics. Whether you’re a shipper, freight forwarder, or importer, knowing these key terms will help you communicate clearly, avoid misunderstandings, and manage shipments more efficiently. Below is a comprehensive explanation of 60 commonly used professional terms in the air-cargo industry.
60 Essential Air Freight Terms
AWB (Air Waybill) – The “ID card” of the shipment. It records the shipper, consignee, and cargo details.
MAWB (Master Air Waybill) – The main air waybill issued by the airline for the entire consolidated shipment.
HAWB (House Air Waybill) – A sub-waybill issued by the freight forwarder for cargo belonging to a specific customer.
IATA (International Air Transport Association) – The organization that manages airline regulations and freight forwarder accreditation.
CBM (Cubic Meter) – Unit for measuring cargo volume (length × width × height / 1,000,000).
Chargeable Weight – The weight used for billing, based on whichever is higher: actual weight or volumetric weight.
FOB (Free on Board) – The seller delivers goods onto the aircraft; after that, risks transfer to the buyer.
DDP (Delivered Duty Paid) – The seller covers all taxes, customs clearance, and final delivery to the buyer’s door.
DDU (Delivered Duty Unpaid) – The buyer handles duties and customs clearance at the destination.
ETA (Estimated Time of Arrival) – Expected arrival time of the flight or cargo.
ETD (Estimated Time of Departure) – Expected departure time of the flight or cargo.
TACT (The Air Cargo Tariff) – The authoritative guide for air-freight rates and airline rules.
ULD (Unit Load Device) – Standardized air-cargo containers or pallets used to secure goods on aircraft.
DGR (Dangerous Goods) – Hazardous materials requiring special packaging and declaration (such as batteries or chemicals).
Perishable Cargo – Temperature-sensitive goods requiring refrigeration or fast transport.
Customs Clearance – The process of declaring goods to customs and paying duties for release.
Freight Collect – Freight charges are paid by the consignee.
Freight Prepaid – Freight has already been paid by the shipper.
Fuel Surcharge – Additional fee based on fluctuating fuel prices.
Handling Fee – Airport or freight forwarder service fee for cargo handling.
Pickup – The service where a forwarder collects cargo from the warehouse to the airport.
Delivery Order (D/O) – A document allowing the consignee to pick up cargo from the warehouse.
Consolidation – Combining multiple customers’ shipments into one larger shipment.
Pre-Alert – Advance notice sent to the destination agent before cargo arrival to prepare for clearance.
Proof of Delivery (POD) – A signed acknowledgment by the consignee confirming receipt of goods.
Tracking Number – A unique number used to trace the cargo journey online.
VAT (Value-Added Tax) – A common import tax in Europe and other regions.
Cargo Insurance – Protects goods against loss or damage during transportation.
Shrink Wrap – Plastic film used to secure palletized cargo.
Packing List – A detailed list of items inside each shipment.
Commercial Invoice – A financial document used by customs to verify cargo value.
Certificate of Origin – A document certifying where the goods were manufactured.
Fumigation – Treatment of wood packaging to kill insects (with IPPC stamp).
Phytosanitary Certificate – Required for exporting agricultural or plant-based products.
AES (Automated Export System) – U.S. export declaration, required before shipping to the United States.
TSA (Transportation Security Administration) – U.S. authority overseeing aviation security requirements.
CC Fee (Customs Clearance Fee) – Service fee charged by brokers for handling customs procedures.
AMS (Automated Manifest System) – U.S. manifest filing requirement, submitted 24 hours before departure.
ENS (Entry Summary Declaration) – EU cargo manifest system similar to AMS.
Carton – Standard cardboard box used for most general cargo.
Pallet – A platform for stacking goods for easier handling and forklift operations.
Gross Weight – Total weight including packaging.
Net Weight – Weight of the goods only, excluding packaging.
Tare Weight – Weight of the packaging material, such as pallets.
Volumetric Weight – Weight calculated based on cargo volume (used when bulky but light).
Charter Flight – Renting an entire aircraft for transportation.
General Cargo – Ordinary goods without special handling requirements.
Lithium Battery – Requires UN38.3 certification and specific packaging.
DG Box – Dangerous-goods storage area inside the airport.
Transit Time – Total transport time from departure to arrival.
Overweight Cargo – Items exceeding airline’s weight limit per piece.
Oversized Cargo – Items exceeding aircraft door or cabin size limits.
Door to Door – Full service from shipper’s warehouse to consignee’s warehouse.
Airport to Airport – Transportation only between airports.
Express Cargo – Courier services such as DHL, UPS, FedEx.
FCA (Free Carrier) – Seller hands over goods to the designated forwarder, completing their responsibility.
Demurrage – Fees charged when cargo stays at the airport too long without pickup.
Storage Fee – Charges for extended warehouse storage.
Reconsignment – Changing the consignee or destination mid-transit.
Re-export – Exporting imported goods again without processing.
Conclusion
Mastering these air-freight terms helps you navigate complex logistics operations with ease. Whether managing shipments, coordinating with airlines, or communicating with freight forwarders, understanding this terminology will significantly improve efficiency and accuracy throughout the shipping process.
