Logistics and air cargo glossary: key terms from A to Z

Logistics runs on abbreviations, and the same abbreviation can mean different things in sea, air and road transport. This glossary collects the terms most often encountered in international trade and air cargo operations on a single page, with short, practical definitions.

Definitions follow usage in IATA, ICC and Turkish customs practice; they are explanatory and do not replace tariff, contract or regulatory texts.

How to use this glossary

Terms are listed alphabetically. Where a Turkish equivalent is in common use it is given in brackets; otherwise the established English term is kept. Terms referred to within a definition have their own entry.

• 3PL / 4PL3PL (third-party logistics) is the outsourcing of logistics functions such as warehousing, transport and distribution to a service provider. A 4PL is a coordinating layer that manages several 3PLs and the supply chain as a whole.
• ACC3Mandatory EU security status for airlines carrying cargo or mail into the Union from a third-country airport. An ACC3 carrier may only accept cargo that has been screened to EU standards or that comes from a secure supply chain.
• AOG (Aircraft on Ground)The highest-priority air cargo category, indicating that an aircraft is grounded by a technical fault and the part must be delivered as fast as possible. AOG shipments go on the first available flight or, if necessary, by charter.
• ATA / ATDActual Time of Arrival / Actual Time of Departure: the times a flight, vessel or vehicle actually arrived or left. Planned times are shown as ETA / ETD.
• AVI (Live Animals)IATA special cargo code for live animals. Shipments are subject to the IATA Live Animals Regulations (LAR) covering container standards, temperature and ventilation; most airlines require prior approval.
• AWB (Air Waybill)The air cargo consignment note. It evidences the contract of carriage between shipper and airline, confirms receipt of the goods and states the charges. It is not a negotiable document of title; the first three digits of its 11-digit number identify the airline.
• B/L (Bill of Lading)The sea freight document that evidences receipt of the goods by the carrier and the contract of carriage, and, when issued in negotiable form, represents the goods themselves. An original is required to release cargo at destination unless a telex release is given.
• BAF / CAFBunker Adjustment Factor: the fuel surcharge added to ocean freight. Currency Adjustment Factor: a surcharge compensating for exchange-rate movements. Shipping lines revise both periodically.
• Belly cargo / FreighterBelly cargo is freight carried in the lower deck of a passenger aircraft; wide-body passenger services supply a large share of air cargo capacity. A freighter is an aircraft whose main deck is dedicated to cargo, needed for CAO shipments and large volumes.
• Bonded warehouse (antrepo)An authorised warehouse under customs supervision in which goods can be stored without payment of import duties. A public bonded warehouse serves third parties; a private one only the operator's own goods.
• CAO (Cargo Aircraft Only)A label and restriction for dangerous goods that may only be carried on freighter aircraft. Packages bearing the orange CAO label cannot be loaded on passenger flights.
• CASS (Cargo Accounts Settlement System)IATA's central settlement system for freight payments between air cargo agents and airlines. A CASS-accredited forwarder settles one periodic account instead of paying each airline separately.
• CBM (Cubic Metre)The volume of a package: length × width × height in metres. LCL freight and storage charges are usually calculated per CBM.
• CFR / CIFIncoterms 2020 sea rules. Under CFR the seller pays freight to the destination port while risk passes on loading; under CIF the seller additionally arranges minimum-cover insurance. Neither should be used for air cargo.
• CFS (Container Freight Station)A facility in or near a port where LCL cargo is stuffed into containers (consolidation) or unpacked from them (deconsolidation).
• Chargeable weightThe weight on which freight is calculated: the greater of actual gross weight and volumetric weight. Air cargo charges per kilogram; LCL sea freight uses tonnes or m³, whichever is greater (W/M).
• CharterThe hire of an entire aircraft or vessel for a specific voyage. Used when scheduled capacity is insufficient, for AOG, project cargo and time-critical shipments; priced per flight or voyage.
• COL / PHARMACOL (Cool) is the IATA special cargo code for temperature-controlled shipments; for pharmaceuticals airlines offer products under names such as PHARMA with ranges like 2–8 °C or 15–25 °C. IATA CEIV Pharma certification shows that these processes have been audited.
• ConsolidationThe grouping of several shippers' cargo by a forwarder under one MAWB or in one container. It lowers the unit freight cost; each underlying shipment receives its own HAWB.
• CPT / CIPIncoterms 2020 rules for any mode. The seller pays carriage to the named destination, but risk passes to the buyer when the goods are handed to the first carrier. Under CIP the seller also arranges all-risks (ICC A) insurance. These are the correct air cargo equivalents of CFR and CIF.
• Cross-dockTransferring inbound cargo directly to an outbound vehicle without putting it into storage. It shortens transit time and avoids warehousing cost; an import shipment collected from the airport terminal and delivered the same day is a typical example.
• CSD (Consignment Security Declaration)A security declaration accompanying cargo through the supply chain that records how (screening, known consignor, etc.) and by whom it was secured. Mandatory under EU and Turkish rules; it may be issued electronically as an e-CSD.
• Customs broker (gümrük müşaviri)A licensed professional who lodges customs declarations on behalf of the declarant, ensures regulatory compliance and deals with the customs administration. In Turkey the profession is regulated under the Customs Law.
• DAP / DPU / DDPIncoterms 2020 arrival rules. Under DAP the seller delivers at the named place on the arriving vehicle, under DPU unloaded; under DDP the seller also pays import duties. In all three the seller carries the risk of the main carriage.
• DeconsolidationBreaking a consolidated shipment (a MAWB or an FCL container) into its constituent shipments (HAWBs) at destination. Performed by the destination forwarder or a CFS.
• DemurrageA daily charge levied by the shipping line when a laden container remains at the port or terminal beyond free time. In air cargo, terminal storage charges after the free period serve a similar function.
• DetentionA daily charge levied when a container is kept outside the port (at the shipper's or consignee's premises) beyond free time and returned late to the line. Not to be confused with demurrage.
• DGR (Dangerous Goods Regulations)IATA's annually updated rulebook for the carriage of dangerous goods by air, based on the ICAO Technical Instructions. It sets out classification, packaging, marking, documentation and training requirements.
• e-AWBThe electronic air waybill that replaces the paper document. The contract of carriage between forwarder and airline is formed through FWB (waybill data) and FHL (house data) messages; it has been the IATA default standard since 2019.
• ETA / ETDEstimated Time of Arrival / Estimated Time of Departure. In air cargo these follow the flight schedule; in sea freight they are updated from the vessel's current voyage plan.
• ETGB (Elektronik Ticaret Gümrük Beyannamesi)Turkey's simplified electronic customs declaration for e-commerce shipments sent or received by post or express carrier below set value and weight thresholds, lodged by authorised operators. Widely used for micro-exports.
• EXW (Ex Works)The Incoterms 2020 rule with the seller's minimum obligation: goods are made available at the seller's premises, not loaded, and everything from there, including export clearance, is the buyer's responsibility. In practice FCA is usually the better choice.
• FCA (Free Carrier)Incoterms 2020 rule under which the seller delivers the goods, cleared for export, to the buyer's nominated carrier at the named place. It is the term that should replace FOB for air cargo.
• FCL (Full Container Load)Sea freight in which an entire container is allocated to one shipper. Freight is charged per container; the shipper stuffs and seals the box.
• FOB (Free on Board)Incoterms 2020 sea rule: risk passes to the buyer when the goods are loaded on board the vessel at the port of loading, and the buyer pays freight. Defined for sea and inland waterway only; it should not be used for air cargo.
• Free timeThe number of days a container may remain at the port or in the user's hands before demurrage or detention starts. It varies by line and contract; air cargo terminals apply a similar free period for storage.
• FSC (Fuel Surcharge)A per-kilogram fuel surcharge added to air freight. Airlines revise it periodically against a jet fuel index; it is shown separately from the freight rate in quotations.
• FTL / LTLFull Truck Load: a vehicle allocated to a single shipper. Less than Truck Load: groupage road transport combining several shippers' cargo in one vehicle. The road equivalent of FCL/LCL in sea freight.
• GHA (Ground Handling Agent)The licensed company that performs ground services on behalf of the airline at the airport: cargo acceptance, ULD build-up, storage, loading and unloading. In Turkey ground handlers operate under an SHGM licence.
• GSSA / GSAGeneral Sales and Service Agent: the appointed representative that sells cargo capacity, handles bookings, follows operations and serves customers in a given market on an airline's behalf. GSA denotes a sales-only mandate; GSSA includes operational services.
• HAWB (House Air Waybill)The air waybill a forwarder issues to its own shipper. Several HAWBs may travel under one MAWB; the airline is not a party to the HAWB.
• HS code (Harmonized System)The World Customs Organization's international goods classification. The first six digits are common worldwide; Turkey applies a 12-digit tariff code (GTİP). Duty rates, licences and restrictions depend on this code.
• IncotermsThe International Chamber of Commerce's 11 standard rules allocating delivery, cost and risk between buyer and seller. The current edition is Incoterms 2020; the rules do not govern transfer of title or payment terms.
• InterlineCarriage of a shipment on the flights of more than one airline under a single AWB. The interline agreement between the carriers governs the handover at the transfer point and the sharing of revenue.
• ISO 9001The international quality management system standard. For a logistics company it certifies, through independent audit, that processes are defined, measured and continuously improved.
• Known consignor (bilinen gönderici)A shipper approved by the civil aviation authority that applies security procedures at its own premises and can enter cargo into the secure supply chain without further screening. In Turkey the status is granted by SHGM; cargo from non-approved shippers is screened by a regulated agent.
• LAT (Latest Acceptance Time)The latest time at which cargo must be delivered to the airline terminal to make a given flight. For general cargo usually a few hours before departure; earlier for dangerous goods and special cargo.
• LCL (Less than Container Load)Groupage sea freight in which several shippers' cargo shares one container. Freight is charged on volume or weight, whichever is greater (W/M).
• MAWB (Master Air Waybill)The air waybill issued by the airline to the forwarder. For consolidated cargo the MAWB covers all underlying HAWBs and evidences the contract of carriage between airline and forwarder.
• NOTOC (Notification to Captain)The written notification to the pilot-in-command of dangerous goods and other special loads (live animals, dry ice, etc.) on board, with UN number, class, quantity and loading position. Prepared by the airline or ground handler and signed by the captain.
• PER (Perishable)IATA special cargo code for perishable goods such as fresh produce, meat, fish and flowers that are sensitive to time and temperature. The IATA Perishable Cargo Regulations (PCR) set packaging and handling requirements.
• Pivot weightIn ULD-based pricing, the weight threshold covered by the flat charge for a given ULD type. Each kilogram above the pivot is charged at a separate over-pivot rate.
• POD (Proof of Delivery)Signed or electronic evidence that the cargo has been delivered to the consignee. In air cargo, release from the airline terminal (DLV) and delivery to the final address are recorded separately.
• RA (Regulated Agent)A forwarder, handler or agent approved by the civil aviation authority to apply security controls to air cargo and tender it to airlines. In Turkey the status is granted by SHGM; cargo from a non-regulated party is not accepted by the airline without screening.
• ROE (Rate of Exchange)The exchange rate used on the AWB to convert freight and charges into local currency. The rate published by IATA for the airline is applied and shown on the AWB.
• SKU (Stock Keeping Unit)The unique code assigned to each product variant in warehouse and e-commerce management. Order picking, stock counts and inventory reporting are done at SKU level.
• SSC (Security Surcharge)A per-kilogram surcharge on air freight that covers screening and security costs. Together with the FSC it forms the surcharge element of the quotation.
• SurchargeThe generic term for charges added to the base freight to reflect a specific cost item: fuel (FSC/BAF), security (SSC), currency (CAF), dangerous goods, oversize, peak season (PSS) and others.
• T1 / NCTS (Transit declaration)T1 is the declaration that allows goods not in free circulation to move through the EU customs territory without payment of duties; NCTS is the electronic common transit system that processes it. Turkey is a party to the Common Transit Convention.
• TAPATransported Asset Protection Association: an industry body that publishes security standards for facilities (FSR) and transport (TSR) to protect high-value cargo from theft. Certified providers are often required for electronics and pharmaceutical shipments.
• Telex releaseAn instruction in sea freight to release the cargo at destination without presentation of the original bill of lading, given after the originals are surrendered to the line at the port of loading. It removes courier time and the risk of lost documents.
• THC (Terminal Handling Charge)The charge for handling a container at the port terminal (crane, stacking, internal transfer), levied at origin (OTHC) and destination (DTHC). Invoiced separately from ocean freight.
• Transit timeThe time for cargo to travel from origin to destination. In air cargo it adds LAT, transfers and the time until the cargo is ready for collection at the destination terminal to the flight time; quotations should state whether it is door-to-door or airport-to-airport.
• TransshipmentA change of aircraft, vessel or vehicle at an intermediate point before the cargo reaches its destination. In air cargo the transfer point and connection time determine the overall transit time.
• ULD (Unit Load Device)A certified air cargo container or pallet designed to be loaded into an aircraft. Identified by type codes such as AKE, AKH, PMC and PAG; compatibility depends on aircraft type and deck.
• VAL (Valuable Cargo)IATA special cargo code for valuables such as gold, jewellery, banknotes and securities, generally with a declared value above USD 1,000 per kilogram. Carried under special terms covering strongroom handling, escort and insurance.
• VGM (Verified Gross Mass)The gross weight of a packed container that the shipper must verify and submit to the line before loading, as required by SOLAS. Determined by weighing (Method 1) or calculation (Method 2); a container without VGM is not loaded.
• Volumetric weightA weight derived from the volume of the cargo. In air cargo it is length × width × height in centimetres divided by 6,000 (1 m³ = 167 kg) and is compared with actual weight to establish the chargeable weight.