GlossaryEN1 min readUpdated: Jun 24, 2026
Indirect Air Carrier (IAC)
A freight forwarder issues its own House Air Waybill (HAWB), assumes full liability for the shipment, and hands it over to an airline for the actual flight – that is the core function of an Indirect Air Carrier (IAC).
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Source: https://www.tsa.gov/for-industry/indirect-air-carrier-management-system
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Definition & Explanation
A freight forwarder issues its own House Air Waybill (HAWB), assumes full liability for the shipment, and hands it over to an airline for the actual flight – that is the core function of an Indirect Air Carrier (IAC). The IAC sells air cargo services under its own name and remains the shipper's contractual counterpart for acceptance, handling, and delivery, while the physical transport is performed by a direct air carrier. In practice, most international freight forwarders and consolidators operate as IACs, with their HAWBs sitting beneath a Master Air Waybill (MAWB) held with the airline. In the United States, IACs are subject to TSA security regulations requiring an approved security program and Known Shipper vetting procedures. The IAC differs from a General Sales Agent (GSA), which markets airline capacity on behalf of a carrier without assuming independent cargo liability toward the shipper.
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