Understanding Terminology and Abbreviations in the Air Cargo Industry
Understanding the language and terminology is key to establishing a foundation in air freight logistics. Let’s explore some essential terms and processes anyone looking to join the industry should know.
Air Waybill (AWB):
An Air Waybill, often abbreviated as AWB, is a crucial document issued by the airline that serves as a contract of carriage between the shipper and the carrier. It contains essential information about the shipment, including the origin and destination, description of goods, and instructions for handling.
House Airway Bill:
A document issued by a freight forwarder or consolidator for individual shipments within a master air waybill. It contains essential information about the shipment, such as origin, destination, and contents, and serves as a contract of carriage between the forwarder and the carrier.
Unit Load Device (ULD):
A Unit Load Device, or ULD, is a standardized container or pallet to transport aircraft cargo. These containers come in various sizes and configurations, allowing for efficient loading and unloading of cargo while maximizing space within the aircraft’s cargo hold. All ULDs are regulated and inspected in accordance with the International Civil Aviation Organization (ICAO).
Each airplane has a loading and restraint system to lock the ULD in place, preventing it from moving during the flight.
Air Cargo Terminal:
An Air Cargo Terminal is a facility at an airport dedicated to the handling and processing of air cargo. These terminals serve as hubs for receiving, sorting, storing, and loading cargo onto aircraft, as well as for customs clearance and other logistics operations.
Some of the busiest cargo airports in the world include:
ANC (Anchorage)
LAX (Los Angeles)
MEM (Memphis)
MIA (Miami)
ORD (Chicago)
Transit Time:
Transit Time refers to the duration it takes for a shipment to travel from its origin to its destination. In air freight logistics, transit time is typically shorter compared to other modes of transportation, making air freight an attractive option for time-sensitive shipments.
Allotment:
A negotiated agreement between a freight forwarder and an airline guaranteeing a specified amount of cargo space on flights within a specific timeframe. Allotments ensure that forwarders have access to capacity for their shipments and can plan logistics more effectively.
Chargeable Weight:
The weight airlines use to calculate the cost of shipping cargo. It is determined by the shipment’s actual weight or the volumetric weight, whichever is greater. Volumetric weight is calculated based on the size of the load, taking into account its dimensions. Accurate shipping weight calculation is crucial for determining shipping costs and ensuring efficient use of cargo space.
Key People and The Roles They Play
Customs Broker:
A Customs Broker is a licensed professional who assists importers and exporters in navigating the complex customs clearance process. They facilitate the clearance of goods through customs by ensuring compliance with regulations, handling documentation, and paying duties and taxes on behalf of their clients. Brokers submit necessary information to the U.S. Customs and Border Protection (CBP)
Freight Forwarder:
What is a freight forwarder? A Freight Forwarder is a company or individual that specializes in arranging the transportation of goods on behalf of shippers. They serve as intermediaries between shippers and carriers, coordinating various aspects of the logistics process, including booking cargo space, arranging transportation, and handling documentation.
GSA (General Sales Agent):
A GSA, or General Sales Agent, is a company or individual an airline appoints to represent its cargo sales interests in a specific market or region. GSAs act as an extension of the airline’s sales and marketing team, promoting and selling cargo space on behalf of the airline. GSAs are crucial in expanding an airline’s reach into new markets.
How Airblox Plays A Part
In conclusion, understanding air freight terminology in the global logistics industry is essential for confidently navigating its complexities. However, mastering terminology is just one piece of the puzzle.
As a platform that connects freight forwarders and carriers, Airblox simplifies accessing air cargo capacity. It’s not just about understanding the language of logistics; it’s about leveraging technology to drive efficiency and success in the air freight industry.