Glossary
Not sure what certain terms mean? KKForwarder offers a comprehensive glossary
of industry jargon to broaden your understanding.
A
Air Waybill (AWB)
A contract of transportation of freight, issued by the carrier, which contains goods information and flight information, together with charges indication. Usually with one original and 8 copies.
Airline Terminal Fee
A mandatory surcharge by the carrier.
Airport
A place where aircraft lands and take off. This is also the start and endpoint of a regular air freight shipment.
Allotment
The allotment is the fixed capacity on a BSA contract that a forwarding agent can have on certain flights.
AMS
A mandatory customs system in the US. it requires all shipments entering the US territory to enter the proper information for customs inspection. The AMS contains all the information about the shipment including the shipper, consignee, pieces, gross weight, dimension, etc.
AOG
Simply means Aircraft On Ground. That the aircraft needs to be repaired and couldn’t fly as scheduled.
ATA
Actual Time of Arrival. Is the actual time of landing of a flight.
ATD
Actual Time of Departure. Is the actual time of landing of a flight.
AVI
Abbreviation of Live Animal. This is a special product in the airfreight industry. A code for this type of special shipment.
B
Back to Back Contract
A back to back is a type of contract which allows two parties to share the same liability and benefit of the same carrier contract.
BIG
BIG stands for Over-size shipment, which is not the normal size and requires special loading on an aircraft. A code for this type of special shipment.
Bill of Lading (B/L)
The official document of an ocean freight shipment, issued by the carrier. Also shows the owner of the shipment. It is endorsable.
Booking
A form of order confirmation when the customer places the booking to a forwarding agent, the customer confirms that the shipment will be consigned to that specific forwarding agent.
Bonded Warehouse
A customs warehouse where cargo can be stored. The tax of goods can be partially paid to the customs according to the client’s request.
BSA
BSA is a dead freight contract between a forwarding agent and the carrier. It secures the capacity and usually has a fixed rate for specific routing.
Bulk Cargo
Cargo that is in “loose” condition and cannot be loaded by a complete container. Such as 3 cartons of pencils, 5 pallets of tissue, etc.
BUP
BUP is a type of cargo transportation when the shipment is loaded into a complete ULD and sent to the final destination without breaking up the ULD during the whole transportation.
C
CAO
Cargo Aircraft Only. Refers to the shipments that can only be loaded onto a cargo aircraft (not a passenger flight). A code for this type of special shipment.
Capacity
Capacity means the volume that certain shipments can utilize on a certain flight/voyage.
CASS
CASS refers to Cargo Accounts Settlement System which is a freight settlement system between IATA and appointed IATA forwarding agents.
Cargo Ready Date
The date when a shipment is ready to be picked up by the forwarding agent. Usually used as the standard of measuring the departure date for the shipment.
Carnet
It’s an import permit for a shipment to enter one country temporarily (for exhibition etc) without paying the import duties. Such shipments will need to be re-export to the original country.
Carrier
A Carrier is a company that owns transportation tools, such as aircraft, trucks, vessels, etc.
CC
Charges Collect. The freight charge of shipment will be paid at the destination (by consignee).
CCA
CCA refers to Cargo Charges Correction Advise. It is a form that a forwarding agent submitted to a carrier to modify the message on the MAWB.
Certificate of Origin (CO)
Refers to Certificate of Origin (CO). It is a document declaring in which country a commodity or good was manufactured.
CFR
Cost and Freight. One of the Incoterms commonly seen in international trade.
CIF
Cost, Insurance and Freight. One of the Incoterms commonly seen in international trade.
COD
Cash On Delivery. The amount of payment that an agent will collect when delivering the shipment. Usually is the payment for the commodity, not the freight.
Co-Loader
A co-loader is an agent that exchanges shipments with another agent to share the same routing benefits.
Consignee
The party (can be a person or a company) that receives the cargo at the destination. Usually is the buyer in international trade. Usually written as cnee.
Commercial Invoice
A mandatory document to prove the international trade is valid and always requested by the customs.
Consolidation
The action of collecting shipments with the same destination from different shippers and forming a bigger volume of cargo. The purpose of doing this is to get a more competitive rate and lower the chance of missing cargo.
Container
A big metal box for loading cargo. In ocean freight, it refers to 20”, 40”, and 40” HQ boxes; and in air freight， it refers to the kind of ULD that seals on all sides to secure the cargo.
Container Yard
A place where the containers of ocean freight are stored. This is also the start and endpoint for a regular ocean freight shipment.
Customs
A government authority inspects the export and import cargo and imposes the duties accordingly.
Customs Broker
A company (or an agent) who can provide customs clearance service to either the buyer or seller.
Customs Clearance
An official mandatory procedure imposed by the Customs Office in order to admit a shipment entering or leaving a country. A shipment officially enters/leaves a country after the customs is cleared.
D
Dangerous Goods
A special type of cargo that is defined as dangerous. The term is applicable for both sea and air freight. Some shipments classified as DG (Dangerous Goods) are prohibited for transportation, some are acceptable when there is a test report. Make no mistake, although shipments with a test report can be transported, this doesn’t make it non-DG, but safe to transport with a proper package. Dangerous goods are classified into 9 classes.
DDU/DDP
Both are Incoterms. DDU means delivery duty unpaid while DDP means delivery duty paid. As the abbreviate indicates, the difference between the two Incoterms is who pays for the duty when at the customs. Make no mistakes, even if it is DDP, it doesn’t mean the agent will be responsible for the duty, they will pay for the duty first, then collect the same amount from the shipper or consignee.
Delivery Order (DO)
A document to prove the delivery of a shipment.
DGD
Refers to the Shipper’s Declaration of Dangerous Goods. Is a document required for shipments containing dangerous goods.
Demurrage Fee
A charge if a container was held on to the port for too long, then the carrier will charge the demurrage fee.
Dimension
Simply means the length x width x height of a single package.
Dimension Weight
A type of weight calculated by dimension, also known as volume weight, is a specific weight used in the air freight industry. The air freight rate will be charged at volume weight or gross weight whichever is higher.
E
EAT
Foodstuffs. A special type of shipment contains food for humans. A code for this type of special shipment.
ETA
Estimated Time of Arrival. Is the scheduled time of arrival of a flight.
ETD
Estimated Time of Departure. Is the scheduled time of departure of a flight.
Ex Work (EXW)
One of the Incoterms, which means the seller is responsible for the production of the cargo and has it ready for pick up. And the buyer will be responsible for the shipment from pick up to delivery and anything else.
E-AWB
Is the electronic form of the AWB. This is to comply with the C2K (Cargo 2000) project of IATA and to visualize every move of the shipment. It requires multiple parties to cope with and the support of the local government.
E-Commerce
A new type of trading and transportation mode. Most commonly seen in online shopping platforms. The commodity brought in online shopping platform is transported under the mode of E-Commerce which will be customs cleared in a different way. It is also written as eCommerce.
Express Shipment
A type of shipment that has the shortest lead time and highest standard of service. Usually refers to air freight shipment. Meanwhile, express shipment also charges higher for shorter transit time.
F
Flight Number
The designation of a flight. To identify a certain flight. With the flight number, you can confirm the aircraft type, routing, and flight frequency.
Forklift
A common vehicle uses to load/unload cargo. Usually for pallets due to the heavyweight. It requires a license to operate a forklift.
FCA
One of the Incoterms. It means the seller is responsible for delivering the cargo to the designated location for transport (usually a warehouse). The most common use of the FCA is followed by a location. For example, FCA Shanghai Airport warehouse.
FOB (Free On Board)
One of the Incoterms. It means the seller is responsible to deliver the cargo until it crosses the border of the vessel. The seller is also obligated for export clearance. Similar to FCA, FOB is usually followed by a location (a port).
Freight Forwarding
Service provided by a freight forwarding company (usually known as cargo agent) for transporting a shipment from one point to another. The shipment is called a “freight”.
Fuel Surcharge (FSC)
A mandatory fee charged by the carrier for the ever-changing fuel prices. Usually comes with another surcharge: SSC (Security Surcharge).
Full Container Load (FCL)
When cargo from a single seller takes up a full container.
Full Payment
A payment method used in charter service and new business. In charter service, the carrier requires the charterer to pay full payment in advance to protect the flight.
G
GCR
A cargo pricing system used in the airfreight industry. This is the most common rate structure for general cargo.
GHA
Ground Handling Agent. Usually refers to the terminal operating agent.
GOH
Hanging Garments. A special type of shipment particularly refers to garments that need to be hung during transportation. Such as high-end suits. A code for this type of special shipment.
GP (General Purpose)
An ocean freight term. There are two typical types of container in ocean freight, one is GP, and the other is HC (High Cube). GP is the standard size of a container with a height of 2.6m (8’ 6”). While the HC has an extended height of 2.9m (9’ 6”).
Gross Weight
The weight of the shipment, including the tare weight (package weight). It is the basic weight that measures a shipment.
GSA
Short for General Sales Agent, sometimes known as GSSA (General Sales and Service Agent). A GSA is an agent who is responsible for a carrier’s sales and service in a specific country. A GSA/GSSA act as the deputy of a carrier when the carrier’s principal is absent.
H
HEA
Heavy cargo, usually refers to a single piece weight over 150kg. A code for this type of special shipment.
HEG
Hatching Eggs. A special type of cargo. A code for this type of special shipment.
Health Certificate
Is a certificate issued by a country’s sanitization authority to prove an animal is in good health and safe for transportation.
HC (Hugh Cube)
An ocean freight term, also written as HQ. There are two typical types of container in ocean freight, one is GP, and the other is HC (High Cube). GP is the standard size of a container with a height of 2.6m (8’ 6”). While the HC has an extended height of 2.9m (9’ 6”).
HBL/HAWB (House Bill of Lading/House Air Way Bill)
Both are house bills issued by a forwarding agent. Usually accompanied with a Master Bill of Lading or Master Air Way Bill, which is issued by a carrier. The master bill is the freight settlement between a carrier and a forwarding agent, while the house bill is the freight settlement between a client and a forwarding agent.
HS Code
HS Code stands for Harmonized Commodity Description and Coding System. It is a series of numbers to identify a certain commodity recognized by the Customs. The HS Code is universally applicable around the world.
HUM
Human Remains. Usually refers to human remains in a coffin. A code for this type of special shipment.
I
IATA
The International Air Transport Association. It is an international organization for civil aviation. Established in 1945 with headquarter in Geneva, Switzerland. IATA set up many standards in the civil aviation industry, and most of them are regarding safety.
IATA Designator
Is a Two-letter code to identify each airline in the world. As LH stands for Lufthansa, RU stands for AirBridgeCargo etc. It is used in many applications like flight numbers, timetables, schedules, tickets, etc.
ICE
Carbon Dioxide, Solid (Dry Ice). A code of a special type of shipment contains dry ice.
IEC Number
An IEC Number is the import or export number registered in the Indian government for enterprises doing import and export business. Only those enterprises with an IEC Number are allowed to do import or export business.
Incoterms
Also known as the International Commercial Terms which are composed of a series of trading terms issued by the ICC (International Chamber of Commerce). These terms define the liability and responsibility of both buyer and seller and are used widely in international commercial transactions.
Interline Carriage
The transportation between two different carriers. Usually, the shipment will be under one MAWB number and be carried on to two carriers.
J
JIT
Just in time.
K
Kilo
An international standard of weight unit in the airfreight industry. The standard unit to measure a shipment is Kilo (kg), and Ton(T).
L
LAR
Live Animal Regulation. The regulation issued by IATA for the safety of live animal transportation.
Less than Container Load (LCL)
An ocean freight term. When a shipment is less than a full container but still needs to be loaded into a container, this shipment will be mixed loaded with other shipments. Each of the individual shipments in that container is called an LCL shipment.
LC (Letter of Credit)
A type of contract in international trade. This is the most rigorous contract type with almost everything written in the contract.
LHO
Live Human Organs/BLood. A code for a special type of cargo of live human organ or blood. Always on top priority with the shortest lead time. Usually, be transported directly between hospitals with helicopters.
Lower Deck
Refers to the lower compartment of an aircraft.
M
MAG
Magnetized Material. Usually classified as dangerous goods class 9. A code for this type of special shipment.
Main Deck
Refers to the upper compartment of an aircraft.
MAL
Mail shipment. A code for this type of special shipment.
Master Bill of Lading (MBL)
The main waybill of ocean freight. Issued by the carrier and act as a contract of carriage and whoever owns the MBL owns the cargo.
MSDS
A mandatory document for shipments contains batteries. The MSDS will declare the nature of the battery and act as a formal report for safe transportation.
N
NCV
No Commercial Value. Usually indicated on the MAWB and advises the commercial value of the cargo.
Notify Party
The party will be informed of shipment arrival at the destination. This information is shown on the MAWB
NVOCC (Non-vessel Operating Common Carrier)
An ocean freight agent. To its literal meaning, an ocean freight agent is a carrier without a vessel.
NWP
News Paper. A code for this type of special shipment.
O
Origin Charges
Also known as the local charges. Refers to all the charges occur at origin before shipment departs. Local charges will be responsible by different party depends on the Incoterms.
OHG
Overhang Items. A code for this type of special shipment.
P
Packing List
A mandatory document for customs clearance. This document contains all the items in a shipment which is considered as a manifest.
Pallet
A base aims to protect the shipment for a stable foundation. Usually wooden and around 20kg.
Peak Season Surcharge (PSS)
A type of surcharge of the ocean freight. Usually occurs during the peak season.
PER
Perishable shipment. Specially refers to those shipments that easily rot without the required temperature. A code for this type of special shipment.
PIL
Pharmaceuticals. The shipment contains pharmaceutical commodities. A code for this type of special shipment.
POD
Port Of Discharge. The port where a shipment is unloaded.
POL
Port of Loading The port where a shipment is loaded.
PP
Freight Prepaid.
Proof of Delivery (POD)
The document of pick-up at the destination issued by the GHA of the carrier at the destination.
Q
QC
Quality Control. A process in a manufacturing enterprise for checking the quality of the products.
QRT
Quick Ramp Transfer. A term in the airfreight industry. Refers to quick transfer of the shipment due to the urgency. QRT shipments are usually be loaded into a whole ULD.
R
RA
Regulated Agent. An agent that is recognized by the Civil Aviation Department. Only RA agents are qualified to have a contract with the carrier and handle shipments in Hong Kong.
RCM
Corrosive shipment. Dangerous Goods class 8. A code for this type of special shipment.
RCX
Explosive 1.3C. Dangerous Goods class 1. A code for this type of special shipment.
RFG
Flammable Gas. Dangerous Goods class 2. A code for this type of special shipment.
RFL
Flammable Liquid. Dangerous Goods class 3. A code for this type of special shipment.
RFS
Flammable Solid. Dangerous Goods class 4. A code for this type of special shipment.
RFS (Road Feeder Service)
Road Feeder Service. Refers to the consignment connected to a truck and transport on land instead of air. It is an extended service of air transportation.
RFW
Dangerous When Wet. Dangerous Goods class 4. A code for this type of special shipment.
RGX
Explosive 1.3G. Dangerous Goods class 1. A code for this type of special shipment.
RMD
Miscellaneous Dangerous Goods. Dangerous Goods class 9. A code for this type of special shipment.
RNG
Non-Flammable Non-Toxic Gas. Dangerous Goods class 2. A code for this type of special shipment.
ROP
Organic Peroxide. Dangerous Goods class 5. A code for this type of special shipment.
ROX
Oxidizer. Dangerous Goods class 5. A code for this type of special shipment.
RPB
Toxic Substance. Dangerous Goods class 6. A code for this type of special shipment.
RPG
Toxic Gas. Dangerous Goods class 2. A code for this type of special shipment.
RRW
Radioactive Material, category I-white. Dangerous Goods class 7. A code for this type of special shipment.
RSC
Spontaneously Combustible. Dangerous Goods class 4. A code for this type of special shipment.
RXB, RXC, RXD, RXE, RXG, RXS
Explosive. Dangerous Goods class 1, and each code represents a different type of explosive. Codes for these types of special shipments.
S
SAL
Usually refers to mail shipments. This is also a code for the general mail shipment.
Shipping Mark
A mark that is printed on the outside of the package of a shipment. Usually for identification of different shipments.
Shipping Order
A document that confirms the container will be released. The shipper can acquire the container with this SO. This is a term in the ocean freight industry.
SDR
Special Drawing Rights. This is a right that the shipper or consignee has when the shipment is damaged. The SDR is calculated according to the IMF regulation.
SITA
Société Internationale de Télécommunications Aéronautiques. It is an organization that makes the standards of international communication through the airfreight industry. The standards are applicable for all carriers.
SLI
Shipper’s Letter of Instruction. Is a document the shipper sends to a forwarding agent for accurate transportation action. Similar to the booking form.
Split Shipment
Also known as part shipment. Simply means one large shipment can not be loaded on one single flight and has to be partially loaded on one flight and split the remaining on other flight(s).
Storage Charge
The charges occur when the shipment is stored at the warehouse over the permitted time. The warehouse will charge the storage charges to the cargo owner or the forwarding agent.
Stuffing
Refers to the action of fulfilling a container. It is a term in the ocean freight industry.
SWP
Sporting Weapons. A code for this type of special shipment.
T
TACT Ract
The international airfreight rate published by the IATA. It contains two parts, which are the TACT Rate for North America and the TACT Rate for the rest of the world. This rate is made at a relatively high standard and is only applicable for special cargo such as Dangerous Goods, Perishable Goods, etc.
TACT Rule
The operational rules for handling all kinds of air cargo. It contains many division rules such as LAR (Live Animals Regulations), DGR (Dangerous Goods Regulations), etc.
Tare Weight
The weight of the equipment that contains the content of the cargo.
THC
Terminal Handling Charges.
U
ULD
Refers to the Unit Load Device. It is the basic unit of loading the shipment onto an aircraft.
V
VAL
Valuable Shipment. Refers to those shipments that require safe transportation. Usually with higher airfreight rate and short lead time. Shipper prefer to buy commercial insurance for such kind of shipment for extra safety. This is a code for this type of special shipment.
VUN
Vulnerable shipment. Refers to the shipments that are fragile and easy to be broken. Similar to VAL, shipments like this will have a higher airfreight rate, but not necessarily a short lead time depending on the nature of goods. This is a code for this type of special shipment.
W
Warehouse
The terminal that used to store cargo. Some warehouses will charge for storage fee some provide a certain period of free storage.
WCA
World Cargo Alliance is an international organization especially for forwarding agents. Agents can have a mutual interface on this platform.
X
X-Ray
A mandatory process before the shipment is delivered into the warehouse. The purpose of this exam is to ensure the safety of transportation and make sure the shipment contains no illegal stuff.
XPS
Priority shipment. Usually with the highest priority except for LHO. Due to the urgency of the shipment, XPS can have the shortest lead time but usually is for small shipments.
Y
Yield
In the airfreight industry, yield refers to the revenue of a shipment.
Z
ZFW
Zuro Fuel Weight. Refers to the total weight of an aircraft without the total usable fule weight.
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