Exploring Logistics Terms in Air and Ocean Freight

Introduction

When comparing air and ocean logistics, we find many similarities, though the terms used can differ. This short-form blog post aims to clarify these terms and highlight the key aspects of both air and ocean freight logistics.

Key Documents in Air and Ocean Freight

Air Freight

In air freight, the Master Air Waybill (MAWB) is a document issued by the airline for a consolidated shipment. This shipment might include one or more Unit Load Devices (ULDs), divided by customer reference or House Air Waybill (HAWB). Essentially, one MAWB can cover a single part or multiple parts. Interestingly, cargo under one MAWB can be split across different planes or journeys, leading to varied arrival times and dates.

Ocean Freight

Similarly, in ocean freight, the Master Bill of Lading (MBL) serves as a contract of carriage for consolidated shipments. Like the MAWB, an MBL can cover a single container or multiple containers.

House Documents

House Air Waybills (HAWBs) in air freight and House Bills of Lading (HBLs) in ocean freight are linked to these master documents. These are usually provided by freight forwarders, companies that manage the transportation and logistics of goods for shippers. They also handle customs clearance and documentation. However, tracking shipments globally can be tricky, as HAWBs and HBLs are specific to the freight forwarder and don’t directly link to an airwaybill or container ID.

Container Load Types

When it comes to partitioning the container’s load, both air and ocean freight use similar terms:

• Full Container Load (FCL): A shipment where the entire container is used by a single shipper.
• Less than Container Load (LCL): A shipment where the goods occupy only a portion of the container, which is shared with other shipments.

Weight Considerations

There are three different types of weights to consider in freight logistics:

• Gross Weight: The total weight of a shipment, including the packaging and the goods themselves.
• Dimensional Weight (Volumetric Weight): A pricing technique that considers the density of a package to determine the shipping cost. It’s calculated as (Length x Width x Height) / a dimensional factor. For example, think about a container full of lightweight sombreros - they are very light but take up a lot of space.
• Chargeable Weight: The weight used to determine the air freight charge, which could be the actual gross weight or the volumetric weight, whichever is higher.

Ports and Tracking

Both air and ocean freight journeys pass through a Port of Loading (POL), where an aircraft or vessel receives cargo, and a Port of Discharge (POD), where the freight is unloaded. These terms are commonly used in tracking shipments. Customers are often interested in the timing of these journeys, which involves several key terms:

• Estimated Time of Departure (ETD): When an aircraft or vessel is expected to leave its origin.
• Actual Time of Departure (ATD): The actual departure time.
• Estimated Time of Arrival (ETA): When the aircraft or vessel is expected to reach its destination.
• Actual Time of Arrival (ATA): The actual arrival time.

Additional Costs

Both methods of transporting freight also face challenges that can lead to additional costs:

• Demurrage: A charge levied by the shipping line to the importer for using the container within the terminal beyond the free time period.
• Detention: A charge for using the container outside the terminal beyond the free time period.

Conclusion

Finally, the journey concludes with the consignee receiving the cargo. Understanding these terms and processes is crucial for efficient logistics management in both air and ocean freight.

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