Parties
Freight Forwarder
Definition
A freight forwarder is a logistics intermediary that organizes and coordinates the transportation of goods on behalf of shippers, acting as an agent between the shipper and various transportation carriers. Freight forwarders are an integral part of a sector that successfully transports goods worth $5.3 trillion every year by air. An IATA Cargo Agent is a freight forwarder accredited by the International Air Transport Association (IATA), granting them the ability to work directly with airlines, issue air waybills (AWBs), and negotiate freight rates, while non-IATA forwarders operate without IATA accreditation and rely on IATA Cargo Agents or consolidators to book cargo space and issue AWBs.
Examples
An AWB starting with 176 identifies an Emirates shipment, while 020 is Lufthansa Cargo. For example, AWB number 176-12345678 is an Emirates shipment. Other common prefixes include 057 for Air France Cargo, 172 for Cargolux, and 023 for FedEx Express, where the AWB comprises 11 digits with the first 3 being the airline prefix followed by an 8-digit unique serial number.
Also known as
- forwarder
- FF
- logistics provider
- cargo agent
- IATA cargo agent
- freight broker
Frequently asked questions
- What is the difference between an IATA and non-IATA freight forwarder?
- IATA agents can work directly with airlines, book cargo space directly with airlines eliminating reliance on third parties, and issue their own AWBs reducing processing time and increasing efficiency. Non-IATA forwarders operate without IATA accreditation and rely on IATA Cargo Agents or consolidators to book cargo space and issue AWBs.
- How long does it take to become an IATA freight forwarder?
- The process to become IATA accredited only takes 25 days. Requirements include at least two people working full time who can perform activities outlined in the Air Cargo Programme Manual issued by IATA, with at least one person available at locations where air cargo is arranged for transport.