Glossary
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AFRA
Is the abbreviated name for Air Freight Rates application. AFRA is an online, real-time rate distribution and management application.
Ad hoc rate
A rate agreed between a carrier and a freight forwarder that usually applies to one shipment or a specific situation.
Air Freight Forwarder
A service organization which serves the dual role of air carrier (usually indirect) and shipper. To the shipper the air freight forwarder is an indirect air carrier because it receives freight under its own tariff, yet does not actually operate the aircraft. The air freight forwarder provides pick-up and delivery service to and from the shippers dock, consolidates shipments into larger units, prepares shipping documentation and tenders shipments to the airlines. To the airlines, the air freight forwarder is a shipper. Ordinarily an air freight forwarder is classed as an indirect air carrier, however, some air freight forwarders operate their own aircraft.
Air Waybill
A shipping document used by the airlines for air freight which services as a contract for carriages and includes carrier conditions of carriage such as limits of liability and claims procedures. It contains shipping instructions to the airline, a description of the commodity, and applicable transportation charges. It is a standard document that accommodates both domestic and international traffic.
Airline Tariff Publishing Co. (ATPCO)
Publisher of airline industry tariff’s setting forth rates and rules applicable to air freight. Tariffs are available on a subscription basis.
Allowable Chain Load (ACL)
The maximum payload weight that can be carried on an airplane on a specific route segment under a specific set of operation conditions.
Belly, Pits or Holds
Compartments located beneath the cabin of an aircraft and used for the carriage of cargo and passenger baggage.
Bulk Cargo
Loose cargo, not unitized, not loaded in containers or on pallets.
Cargo Aircraft
Aircraft for the carriage of cargo only, rather than the combination of passengers and cargo. Cargo aircraft carry palletized or containerized traffic on the main deck and either unitized or bulk cargo on the lower deck. Cargo aircraft are normally equipped with special cargo loading systems on the main deck. Also referred to as freighters or all-cargo aircraft.
Chargeable weight
The actual gross weight or volume weight of a shipment, whichever is higher (except in cases where a lower charge for a higher minimum weight applies).
Commodity rates
The rate applies to the shipment of a specific product between specified ports. It is lower than the general cargo rate. In practice, most export goods are transported under the specific commodity rate.
Container
A unit load device (ULD) which interfaces directly with the airplane cargo handling and restraint system. See Unit Load Device.
Contract rate
An unpublished rate established by contractual agreement between a carrier and a regular shipper, usually linked to a minimum volume requirement over a specified time period. Contract rates are sometimes a specified percentage discount of published rates.
Cubic Capacity
The carrying capacity within an aircraft or container, expressed either in cubic feet, cubic inches, cubic centimeters or cubic meters.
Dangerous Goods
The United Nation’s official term for Hazardous Materials. Articles or substances which are capable of posing a significant risk to the health or safety of the general public when transported by air and which are classified according to the most current editions of the ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air and the IATA Dangerous Goods Regulations.
Dimensional Weight (Volume Weight)
A computed weight based on a minimum density requirement. It is used to determine the freight charges for low dense shipments. It is computed by dividing the shipment volume by the minimum density requirement. The Dimensional Weight Rule was developed to insure fair compensation for low-density shipments. When a given shipment falls below the minimum density requirement, dimensional weight rather than actual weight is used to calculate the transportation charged. Minimum density requirements vary from carrier to carrier. Some carriers give discounts for shipments of high-density goods.
eRate sheet
A specific format used for electronically transmitting sets of tariffs.
Freighter
An all-cargo airplane. See Cargo Aircraft.
Freight Forwarder
See Air Freight Forwarder.
General Cargo Rates
The general cargo rate applies to a shipment of mixed products.
General public rate
Rates that can be viewed by anyone. These rates are applicable when a shipper or freight forwarder doesn't have any other discounted rate arranged with the carrier. These rates could be the same rates published in TACT or these rates could be a discounted rate offered by the carrier to anyone.
GHA
Ground Handling Agent. A contractor who handles the acceptance and loading or off-loading of a shipment for a carrier.
Gross Weight
Entire weight of a shipment including the weight of containers (tare weight) and packaging material. On an air waybill, the tare weight (when applicable) and shipment weight are listed separately.
GSA
General Sales Agent. A contractor who acts as the sales person for another company.
Handling agent
See GHA
Handling codes
Codes used to indicate specific types of freight to ensure a shipment is handled appropriately.
Handling list
A list of agents who act as the ground handler or sales agent for a carrier in a city or at an airport.
Hazardous materials (Hazmat)
The U.S. Government’s official term for Dangerous Goods. Items of freight that are inherently harmful and classified under Title 49, Code of Federal Regulations (CFR). Hazardous Materials may only be transported under certain conditions relative to packaging, quantity carried, airplane type, location on board the airplane, etc., and in conformance with applicable rules. Also see Dangerous Goods.
IMP code
A code applied to cargo that requires special handling. Examples include: AVI – Live animal, CAO – Cargo aircraft only, EAT – Foodstuffs, HUM – Human remains, ICE – Dry ice, PER – Perishable cargo, etc.
International Air Transport Association (IATA)
An international trade and service organization for airlines of more than 100 countries serving international routes. IATA activities on behalf of shippers in international air freight include development of containerization programs, freight handling techniques and, for some airlines, uniform rates and rules.
Length & Girth
A limitation on shipment size occasionally used by an airline. The equation used to calculate length and girth: Length + (2x width) + (2x height). The largest measurement is always used as the length in the equation.
Lower Deck
The compartment below the main deck (also called “lower love”, “Lower hold”, “pit” or “belly”).
Lower Deck Container/Pallet
A ULD shaped to fit the lower deck cargo compartment. These units come in half sizes and full sizes, related to the width across the airplane.
Main Deck
The deck on which the major portion of the payload is carried.
Main Deck Container/Pallet
A ULD carried on the main deck. These units come in half sizes and full sizes, related to the width across the airplane.
Maximum Gross Weight, ULD
The maximum allowable combined weight of the ULD and its contents (payload).
Minimum Charge
The lowest rate applicable on each type of air cargo service no matter how small the shipment.
Minimum Weight
The lowest weight at which a freight rate is applicable (see Weight Break).
Negotiated Rate
In the U.S., an agreed rate between an airline and a shipper which is not otherwise provided in the current air freight rate tariff. These rates became legal when airfreight was deregulated in November in 1977.
Nett rate
Either the cost per unit of transporting a shipment or the lowest discounted rate a carrier is willing to offer a customer. This term can be used in either context.
Pallet
A platform of standard dimensions on which goods are assembled and secured by nets and straps before being loaded as a unit onto an airplane. It has a flat undersurface to interface with ball, roller, or caster surfaces.
Product
Types of shipping services offered by a carrier.
Rate
The amount charged by a carrier to transport a shipment.
Road Feeder Service (RFS)Freight service provided by the airlines using motor trucks, generally in conjunction with an air movement.
Sales margin
The amount added (either a percentage or an absolute amount) to a rate that will be offered to a customer.
Set
A set of rates; a subset of tariff.
Specific Commodity Rates (SCR)
Rates applicable to certain classes of commodities. Usually these rates are applied to commodities that move in large volume shipments in a given market. Hence, specific commodity rates are usually lower than the general commodity rate between the same pair of cities.
Surcharges
Charges other than the rate charged for shipping. Types of surcharges could be to cover fuel costs, shipment handling, insurance, security, dangerous goods handling, etc.
TACT
The Air Cargo Tariff. This is a publication that lists worldwide rates for air shipping. These rates are the highest rates that a shipper would be charged. Airlines generally discount off these rates.
Tariff
A document setting forth applicable rules, rates and charges for the movement of goods. A tariff sets forth a contract of carriage for the shipper, the consignee and the carrier. Tariffs are sometime published by the carriers themselves and by a variety of publishing agencies, such as The Airline Tariff Publishing Company (ATPCO), The Air Cargo Tariff (TACT) and Cargo Rates Services, Inc.
Tariff Type
A rate category, such as general public rate, contract rate, ad hoc rate, special rate, etc.
ULD
Unit Load Device. A container that is used to consolidate freight shipments for transport on an aircraft.
Unit Load
A number of pieces of freight or cargo in a single box or container, or on a pallet held in place by a net, strapping, or similar device to make them suitable for transporting, stacking or storage as a unit. It is also a single large item packaged for transporting, stacking or storage.
Unit Load Device (ULD)
Term commonly used when referring to container, pallets and pallet nets. The purpose of the ULD is to enable individual pieces of cargo to be assembled into standardised units to ease the rapid loading and unloading of airplanes and to facilitate the transfer of cargo between airplanes that have compatible handling and restraint systems.
Volume
A size measurement detemined by multiplying the lengh, width and height of an object. The measurement is usually expressed in cubic meters or cubic feet.
Volume weight
A calculation used when a shipment's size takes up more room than what is considered normal for the weight of the shipment. For example, a 100kg. box of wearing apparel would be larger than 100kg box of books. Therefore. the box of weaing apparel would be charged at its volume weight instead of its actual weight. Volume weight is calculated by mutiplying the greatest length of the shipment by its greatest width and greatest height. This result is divided by 166 to get the volume weight.
Weight breaks (WB)
Weights at which discounted rates will apply to a shipment so that heavier or larger shipments are charged at a lower rate per lb or kg. Air carriers and some road carriers use a sliding scale of rates or a discount schedule in charging freight. The sliding scale of rates in the air freight may break at 100, 200, 300, 500 and 1,000 kilograms (kgs). As such, an air consignment of 200kgs to 299 kgs has a lower rate than the 100 kgs to 199 kgs. The freight rate breaks in road transport may vary greatly among carriers.
