Air Freight Forwarders Key Terms

Discover more about the world of air freight forwarding terminology

Air freight forwarders have their own language of terms and definitions that you should familiarize yourself with if you plan to transport or receive foreign or domestic goods. You want to make sure that you are covering your bases when it comes to proper taxes and fees, and knowing the right terminology and definitions will help you better understand the process and steps to make your air freight forwarding project a success.

Air freight forwarders key terms include required paperwork, packing and shipping materials, locations and more, and discovering the meaning of each will help you better communicate with your shipper, with your client or with your seller. It will help you navigate customs better, and it will help you become a more efficient shipper and/or receiver when you know how to watch your costs and get the process right the first time.

 

Pallet

Pallets are platforms that are used for arranging goods that are then secured in the plane by nets and straps. Palletizing allows for more efficient use of space and better cargo handling.
Try: Find out more about pallet systems from AAR.

Air waybill

Air waybills are the documents that are issued by the carrier to the shipper that shows receipt of goods, how it is being transported and what arrangements have been made to deliver the goods at the destination point. Standard air waybills are used for both domestic and international traffic.
Try: Learn about completing air waybills from FedEx.

Bonded terminal

Bonded terminals are airline terminals that have been approved by the U.S. Treasury Department as a place for the storage of goods until your Customs duties are paid or the goods have been otherwise released from the terminal.
Try: Learn about bonded terminal services from Charter Brokerage.

Indirect Air Carrier (IAC)

Indirect Air Carriers (IAC) are organizations or entities that are within the United States but are not in possession of a Federal Aviation Administration (FAA) air carrier operating certificate. IACs must implement security programs that meets U.S. standards and requirements.
Try: Learn more about Indirect Air Carriers (IAC) from the Transportation Security Administration (TSA).

Commercial invoice

A commercial invoice is the required document that identifies the transaction between the seller and buyer. Information generally included on the document generally includes the invoice number, the date, the shipping date, how the goods are being transported, delivery and payment terms, description of goods as well as the quantity.
Try: Find out more about the commercial invoice from DHL.

Foreign Trade Zone (FTZ)

Foreign Trade Zones (FTZ) are restricted-access commercial and industrial areas that are located in or near ports of entry specifically designated governments for duty-free entry of any non-prohibited goods. It is a location where foreign and domestic merchandise can be stored, displayed, and used for manufacturing within the zone and re-exported without duties having to be paid on the items.
Try: Find out more about Foreign Trade Zones from the Foreign Trade Zone Resource Center.

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