What is cgc in air freight?

CGC is the air freight forwarder with expertise in shipping goods around the globe. Are you looking for a glossary or a quick explanation of air cargo related terms and. AFC, Air Freight Charges, N. Airfreight Terminology | Air Freight, Air Charter, Air Cargo, Express Trucking, Expedited Shipping and Hot Shot Delivery at AirFreight. Air Cargo (Air Freight) Terminology and Abbreviation.

AGENT (AGT): The relationship existing between two parties by which one is authorized to transact certain business for the other.

AIR WAYBILL (AWB or MAWB): The document made out by or on behalf of the shipper which, when used, evidences the contract between the shipper and carrier(s) for carriage of goods over routes of the carrier(s).

AIR WAYBILL DATA MESSAGE (FWB): Standard CargoIMP message identifier for electronic Master

Air Waybill Data – MAWB: It eliminates the need for paper AWB or data re-entry.

AIRCRAFT ON GROUND (AOG): Applies to parts needed to return an aircraft to service and have first boarding priority

AUTOMATED MANIFEST SYSTEM (AMS): A US Customs & Border Protection Agency system used to notify the details of shipments loaded onto a specific flight.

B

BOOKING: The allotment in advance of space or weight capacity of goods.

C

CARGO (CGO): Also referred to as “goods”, means any property carried or to be carried on an aircraft, other than mail or other property carried under terms of an international postal convention, baggage or property of the carrier; provided that baggage moving under an air waybill or a shipment record is cargo.

CARGO ACCOUNTS SETTLEMENT SYSTEM (CASS): A system of accounting and settling accounts between CASS Airlines and appointed IATA Cargo Agents.

CARGO CHARGES CORRECTION ADVICE (CCA): The document used for the notification of changes to the transportation charges and/or the other charges and/or the method of payment.

CARGO DECLARATION: Information submitted prior to or on arrival for departure of a means of transport for commercial us that proved the particulars required by Customs relating to cargo brought to or removed from the customs territory.

Cargo IMP version of EDIFACT (CargoFACT): Cargo IMP version of UN Electronic Data Interchange for Administration, Commerce and Transport – EDIFACT

CARGO INTERCHANGE MESSAGE PROCEDURE (CARGO-IMP): Messaging procedures developed by the member airlines of the ATA and IATA.

CARGO MANIFEST: A document listed by AWB numbers loaded on a flight. It is mainly used for customs entry/exit.

CARNET: A customs document permitting the holder to send or carry merchandise into certain foreign countries temporarily without paying duties or posting bonds.

CARRIAGE: Also referred to as “transportation”, means carriage of cargo by air.

CARRIER: The transportation carrier issuing the airwaybill and creating the shipment record and all other carriers that carry of undertake to carry the cargo under the airwaybill or shipment record or to perform any other services related to such air carriage.

CERTIFICATE OR ORIGIN: A document often required by certain countries which establishes the country of origin of specified goods.

COMMERCIAL INVOICE: Shipper’s document describing the goods being shipped and their value which must accompany all international and transborder shipments.

COMMODITY: Description of goods being shipped.

CONDITIONS OF CARRIAGE: The terms and conditions established by a carrier in respect to its carriage.

CONDITIONS OF CONTRACT: The terms and conditions shown on the air waybill or with any consent by the shipper that shipment record may be used.

CONNECTING CARRIER: A carrier whose service the cargo is to be transferred for onward connecting transportation.

CONSIGNEE (CNEE): The person whose name appears on the air waybill or in the shipment record as the party to who the goods are to be delivered by the carrier.

CONSIGNMENT: See “Shipment”.

CONSIGNOR: See “Shipper”.

CONSOLIDATION LIST MESSAGE (FHL): A standard CargoIMP message identifier used to provide a “Check-list” of House Waybills (HAWB’s) associated with a Master AirWaybill (MAWB)

CUSTOMS: The Government Service which is responsible for the administration of customs law and the collection of duties and taxes.

CUSTOMS BROKER: An agent specialized in inbound customs clearance.

CUSTOMS CLEARANCE: The accomplishment of the Customs formalities necessary to allow goods to enter the country, to be exported or to be placed under another customers procedure.

CUSTOMS CLEARANCE AGENT: A customs broker or other agent of the consignee designated to perform customs clearance services for the consignee.

D

DANGEROUS GOODS (DG): Articles or substances which are capable of posing a significant risk to health, safety or to property when transported by air.

DESCRIPTION OF GOODS: Plain language description of the nature of the goods sufficient to identify them at the level required for banking, customs, statistical or transport purposes.

DESTINATION: The ultimate stopping place according to the contract of carriage.

DOCUMENTATION: The required paperwork accompanying a shipment such as airwaybill, Export Declaration, Health Certificates.

E

EDIFACT: Electronic Data Interchange for Administration, Commerce and Transport.

EXPORT PERMIT: A government document authorizing the export of specific goods to designated countries.

F

FLIGHT NUMBER: The designation of a flight.

FORWARDER (FWDR): Appointed by the shipper, and as an agent of the airline, to process and arrange export consignments overseas.

FREIGHT STATUS UPDATE (FSU): Standard CargoIMP message identifier used to notify/update interested parties with a (change of) status of a shipment as recorded in the system of the handling party.

FREIGHT STATUS REQUEST (FSR): Standard CargoIMP message identifier used to request the current status of a nominated shipment.

FREIGHT STATUS ANSWER (FSA): A standard CargoIMP message identifier used to reply to a Status Request (FSR) indicating latest status, or statuses, in the movement of the nominated shipment.

G

GENERAL SALES AGENT (GSA): An agent authorized in a country to handle an airline’s export sales/services.

GOODS: See “Cargo”.

GOODS DECLARATION: A statement made in the manner prescribed by the Customs by which person concerned indicate the Customs procedure to be applied to the goods and finish the particulars which the Customs require for its application.

GROSS WEIGHT: The weight of a shipment, it’s container and packing material.

H

HEALTH CERTIFICATE: A document signed by a veterinarian attesting to the good health of an animal tendered for shipment.

HOUSE AIR WAYBILL (HAWB): Document issued by an international air Freight Forwarder under the terms of their own tariff.

I

IATA CARGO AGENT: A forwarder/broker who has been approved and is recognized by IATA to receive cargo, issue airwaybills and other documents for carriers and collect charges for air shipments.

IATA CARRIER: A carrier that is a member of the International Air Transport Association (IATA).

IMPORT PERMIT: A document required and issued by some national governments uthorizing the importation of goods into their country.

IN-BOND TRANSPORTATION: Transporting a transit cargo shipment in bond without clearing customs to the destination.

INTERLINE CARRIAGE: The carriage over the routes of two or more air carriers.

INTERLINE CARRIER: The carriage over the route of two or more air carriers.

INTERNATIONAL FREIGHT FORWARDERS ASSN (FIATA)

K

KYOTO CONVENTION: International Convention on the simplification and harmonization of customs procedures.

L

LETTER OF CREDIT (L/C): A letter from a bank, on behalf of a buyer, addressed to the seller authorizing him or her to draw drafts for a stipulated amount, under specified terms and to provide eventual payment for drafts within a given time.

M

MASTER AIR WAYBILL (MAWB): The carrier’s airwaybill issued to cover a consolidated shipment tendered by a forwarder or consolidator.

MONTREAL PROTOCOL No.4: Protocol to amend the Convention for the Unification of certain rules relating to International Carriage by Air.

N

NET WEIGHT: The actual weight of an article exclusive of the packaging

NOTIFICATION OF ARRIVAL: A written notice sent to the consignee notifying them of a shipment’s arrival.

O

ORIGIN: Starting point of a shipment.

R

RECEIVING CARRIER: The carrier receiving the consignment from a carrier, agent or shipper or onward transportation.

REROUTING: The route to be followed as altered from that originally specified on the AWB.

RESERVATION: See “Booking”

ROAD FEEDER SERVICE (RFS): Surface transportation arranged by a carrier to/from his gateway stations to another airport.

ROUTING: The route to be followed as originally specified in the AWB or shipment record.

S

SHIPMENT (SHPT): One or more pieces of goods accepted by the carrier from one shipper at one time and at one address, receipted for in one lot and moving on one airwaybill or shipment record to one consignee at one destination address.

SHIPPER (SHPR): The person who originates the shipment of goods. Also known as the “consignor”.

SHIPPER’S LETTER OF INSTRUCTION (SLI): The document containing instructions by the shipper or shipper’s agent for preparing documents and forwarding.

SPECIAL DRAWING RIGHT (SDR): A reserve asset used as a unit of account, as defined by the International Monetary Fund (IMF).

SPECIAL INSTRUCTIONS: Directions for handling a shipment and/or delivery directions for a shipment.

T

TARIFF: The published rates, charges and related rules of a carrier.

THE AIR CARGO TARIFF (TACT): Rules regulations and rates published for international air shipments.

THIRD PARTY: Any person who acts on behalf of another person.

THROUGH CARGO: Cargo staying on board at a stopping place en-route for ongoing carrier on the same flight.

TRANSFER: Movement of cargo from one carrier to another against transfer manifest.

TRANSFER CARGO: Cargo arriving at a point by one carrier and continuing it’s journey here from by another carrier.

TRANSFER MANIFEST (TRM): The document executed by the transferring carrier upon transfer of interline cargo and endorsed by the receiving carrier as a receipt for the consignment transferred.

TRANSFERRING CARRIER: The participating carrier transferring the consignment to another carrier at a transit point.

TRANSSHIPMENT: The unloading of cargo from one flight and loading onto another for onward carriage.

TRANSIT: An enroute stopping place where cargo remains on board.

TRANSIT CARGO: Cargo arriving at a point and departing by another flight.

TRANSPORTATION: See “Carriage”.

U

ULD CONTROL RECEIPT (UCR): A voucher of transfer ULD signed by transferring and receiving carriers which is used to retrieve ULD and for account settlement of ULD demurrage.

UNIT LOAD DEVICE (ULD): A container or pallet used to transport cargo on an aircraft.

V

Valuable Cargo VAL Shipments of high value requiring advance arrangement and special handling.

Step 1: Calculate the capacity of the air freight shipment

Step 2: Convert cubic inches into cubic meters

Step 3: Finalise the volumetric weight

Step 4: Convert weight into kilograms

Step 5: Compare the volumetric weight with the gross weight.

If weight in kg < Volumetric weight:

Step 1: Calculate the capacity of the air freight shipment

Step 2: Convert the cubic inches into cubic meters

Step 3: Finalise the volumetric weight

An AWB is a bill of lading which covers both domestic and international flights transporting goods to a specified destination. Technically, it is a non-negotiable instrument of air transport which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions. Normally AWB refers to the Air Waybill issued by carrying airlines and also called Master Air Waybill (MAWB) which comes with three digits of numeric airline identification codes issued by IATA to non-U.S. based airlines and Air Transport Association of America to U.S. based airlines. However, air freight forwarders also issue HAWB (House Air Waybill) to their customers for each of the shipments.

A unit load device (ULD) which links directly with the airplane cargo handling and restraint system.

A term used to describe blocked space by airlines on behalf of forwarders/shippers.

Actual Time of Arrival, or Airport-To-Airport, or Air Transport Association of America.

Actual Time of Departure.

The Customs Service authorizes bonded warehouses for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if re-shipped to foreign points.

For consolidated air freight, it is moved under one MAWB and each consignment designated to specific consignee or recipient is under one HAWB. When freight forwarder receives the consolidated cargo from carrier, they will break the consolidation apart per HAWB then proceed customs clearance along with associated shipping and import documents. Such Break-Bulk is normally handled by airlines or their contracted ground handling agent.

A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.

An aircraft configured to carry both passengers and cargo on the Main Deck.

Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

In order to handle small lot of consignment efficiently and competitively, freight forwarder usually put many consignments into one lot then tender to carrier for forwarding. In this case, each consignment will be shipped with one HAWB respectively and all of them will be under one master AWB.

The government authorities designated to collect duties levied by a country on imports and exports.

An individual or company licensed by the government to enter and clear goods through Customs. The U.S. Customs Service defines a Customs Broker, as any person who is licensed in accordance with Part III of Title 19 of the Code of Federal Regulations (Customs regulations) to transact Customs business on behalf of others. Customs business is limited to those activities involving transactions with Customs concerning the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected by Customs upon merchandise by reason of its importation, or the refund, rebate, or drawback thereof.

The procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo such as FCC or FDA approval.

A document, required by some foreign countries’ customs officials to verify the value, quantity, and nature of the shipment, describing the shipment of goods and showing information such as the consignor, consignee, and value of the shipment.

Commodities classified by IATA according to its nature and characteristic in terms of the effect of its danger to carrier’s flying safety.

Deliver Duty Paid.

Deliver Duty Unpaid.

Carrier charge for freight based on the dimensional weight or actual gross weight whichever is higher.

Ship without consolidation and under one MAWB i.e. non-consolidation.

Drawback is a rebate by a government, in whole or in part, of customs duties assessed on imported merchandise that is subsequently exported. Drawback regulations and procedures vary among countries.

A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods, some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).

EDI, Electronic Data Interchange for Administration, Commerce, and Transportation, is an international syntax used in the interchange of electronic data. Customs uses EDI to interchange data with the importing trade community.

Estimated Time of Arrival. Then, It normally takes 3 hours for carriers to Break Bulk then ready to be picked up by forwarders along with customs release notification.

Estimated Time of Departure. The cut-off time for carriers’ cargo ramp handling is normally two hours ahead of ETD. However, the freight forwarders’ consolidation cut-off time may vary depending on each forwarder’s operations respectively.

Like C & F, “Freight/Carriage paid to …” means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship’s rail. The term can be used for all modes of transport including multi-modal operations and container or “roll on-roll off” traffic by trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier’s receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination. (Also see incoterms)

This term is the same as “Freight/Carriage Paid to …” but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

In the context of travel activities, gateway refers to a major airport or seaport. Internationally, gateway can also mean the port where customs clearance takes place.

The Harmonized Commodity Description and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council. Beginning on January 1, 1989, the new HS numbers replaced previously adhered-to schedules in over 50 countries, including the United States.

House Air waybill issued by carrying airlines’ agent, normally freight forwarder.

International Air Transport Association (IATA), established in 1945, is a trade association serving airlines, passengers, shippers, travel agents, and governments. The association promotes safety, standardization in forms (baggage checks, tickets, weigh bills), and aids in establishing international airfares. IATA headquarter is in Geneva, Switzerland.

Two-character Airline identification assigned by IATA in accordance with provisions of Resolution 762. It is for use in reservations, timetables, tickets, tariffs as well as air waybill.

The import certificate is a means by which the government of the country of ultimate destination exercises legal control over the internal channeling of the commodities covered by the import certificate.

A document required and issued by some national governments authorizing the importation of goods. Also referred as import permit. With such documentation, customs clearance can be conducted.

Import restriction, applied by a country with an adverse trade balance (or for other reasons), reflect a desire to control the volume of goods coming into the country from other countries may include the imposition of tariffs or import quotas, restrictions on the amount of foreign currency available to cover imports, a requirement for import deposits, the imposition of import surcharges, or the prohibition of various categories of imports.

Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred. (also see incoterm section)

This certificate is used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.

An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.

Movement of goods by more than one mode of transport, i.e. airplane, truck, railroad and ship.

Lower deck type 3 container. This is the most commonly used container in passenger aircraft.

The compartment below the Main Deck (also synonymous with lower hold and lower lobe).

The deck on which the major portion of payload is carried, normally known as Upper Deck of an airplane. The full cargo freighter aircraft has it entire upper deck equipped for main deck type of containers/pallets while Combi aircraft uses it rear part of the upper deck for cargo loading. There is no upper deck or main deck type of container/pallet at passenger aircraft.

No Value Declared.

A shipping document issued by shipper to carrier, Customs and consignee serving the purposes of identifying detail information of package count, products count, measurement of each package, weight of each package, etc.

Proof Of Delivery, or a cargo/package receipt with the signature of recipient. This term has been widely used in courier and express industry and also gaining more attention and implementation at air cargo industry..

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, and similar characteristics). When an importer applies for Letter of Credit as the means of payment, a Pro Forma Invoice from the beneficiary of such Letter of Credit, usually the exporter, is required by the L/C issuing bank.

The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).

TACT stands for The Air Cargo Tariff. It is published by IAP — International Airlines Publications, an IATA company.

The weight of a ULD and tie down materials without the weight of the goods it contains.

When an importer makes entry of articles and claimed to be exempt from duty under Chapter 98, Subchapter XIII, Harmonized Tariff Schedule of the United States, a bond is posted with Customs which guarantees that these items will be exported within a specified time frame (usually within one year from the date of importation). Failure to export these items makes the importer liable for the payment of liquidated damages for breach of the bond conditions.

Transshipment refers to the act of sending an exported product through an intermediate country before routing it to the country intended to be its final destination.

Unit Load Device, Any type of container, container with integral pallet, aircraft container or aircraft pallet.

The ultimate consignee is the person located abroad who is the true party in interest, receiving the export for the designated end-use.