Most important air cargo terms

In the rapidly evolving world of digital logistics, precision is the primary currency. For freight forwarders, carriers, and supply chain managers, understanding the nuances of air cargo terminology is no longer just about operational fluency—it is about digital integration. As the industry pivots toward full automation and paperless ecosystems by 2026, mastering these core terms is essential for navigating modern air cargo software.

Below is the definitive glossary of the most critical air cargo terms for the digital age.

1. Documentation and Digital Standards

The shift toward "e-freight" has transformed how we handle shipment data.

• eAWB (Electronic Air Waybill): The digital version of the traditional Air Waybill. By 2026, the eAWB is the global standard, eliminating paper and reducing data entry errors in Cargo Management Systems (CMS).
• MAWB vs. HAWB: * Master Air Waybill (MAWB): Issued by the airline to the freight forwarder, covering the total consolidated shipment.
  • House Air Waybill (HAWB): Issued by the forwarder to the individual shipper, detailing specific goods within a consolidation.
• ONE Record: An IATA-led data-sharing standard that creates a single, version-controlled view of a shipment across the entire supply chain.

2. Capacity and Load Management

Efficiency in air cargo is measured by how well space is utilized.

• ULD (Unit Load Device): Standardized pallets or containers used to load luggage, freight, and mail on wide-body and specific narrow-body aircraft. Modern software tracks ULDs in real-time using IoT sensors.
• Volumetric Weight (Chargeable Weight): A calculation used to determine the cost of shipping based on the volume of a package rather than its actual weight. It is calculated using the formula

• Load Factor: The percentage of an aircraft's total cargo capacity that is actually utilized. Optimizing this is the primary goal of predictive AI in cargo software.

3. Rate Management and Booking

Pricing in 2026 is dynamic and highly sensitive to market fluctuations.

• Spot Rates: Real-time, market-driven prices for immediate cargo space booking, often used when demand exceeds pre-negotiated allotments.
• Ad Hoc Rates: One-off rates negotiated for specific, non-routine shipments.
• Allotment: A pre-purchased block of space on a carrier’s flight, reserved by a freight forwarder to ensure guaranteed capacity during peak seasons.
• eBooking: The process of booking cargo space instantly through digital platforms, providing real-time confirmation and rate transparency.

4. Operational Milestones and Timing

Timing is the core value proposition of air freight.

• LAT (Latest Acceptance Time): The absolute deadline by which cargo must be delivered to the terminal to ensure it is processed for its scheduled flight.
• ATA / ATD: Actual Time of Arrival and Actual Time of Departure. Tracking these milestones in real-time is a baseline requirement for modern visibility software.
• RFS (Road Feeder Service): Often referred to as "trucking the flight," this is the transport of air cargo by road under an airline's flight number to connect different airport hubs.

5. Security and Compliance

Regulatory adherence is the "gatekeeper" of global air trade.

• Known Shipper: A status granted to an entity that has met specific security criteria, allowing their cargo to be transported on passenger aircraft with less stringent screening.
• HS Code (Harmonized System): A standardized numerical method of classifying traded products. Software with integrated AI can now automate the assignment of HS codes to ensure customs compliance.
• SOC (Screened on Customs): A designation indicating that the cargo has undergone the necessary security screening protocols before boarding.

Why Terminology Matters for Your Software Strategy

In 2026, your air cargo software is only as good as the data it processes. A deep understanding of these terms ensures that your team can build, implement, and utilize digital tools that speak the universal language of global logistics.