What Is an Indirect Air Carrier? Requirements and Benefits

An indirect air carrier is a main part of air freight and logistics.These companies can move your goods from one place to another. Many businesses depend on IACs to handle shipments quickly and safely. 

Let’s study in detail the indirect air carrier management system, its advantages and a list of Chinese IACs.

What is an Indirect Air Carrier?

An indirect air carrier is a business or individual that arranges air transportation for cargo without operating the aircraft themselves. Instead of owning planes, they work with direct air carriers like airlines to move goods for their clients. 

IACs handle everything from booking flights to managing paperwork and monitoring that the cargo reaches its destination safely. They play a major role in the supply chain by coordinating logistics for companies that need to ship products by air.

4 Advantages of Using an Indirect Air Carrier

You will get many advantages if you use an indirect air carrier for your business shipments.

1. Potentially Lower Costs

One of the biggest advantages of using an IAC is the lower costs. They usually have established relationships with multiple airlines which allows them to negotiate better rates for shipping. This means businesses can save money by sharing space on flights and reduce the overall shipping cost per unit.

Additionally, businesses don’t have to bear the costs of operating or maintaining aircraft. The IAC takes care of everything from booking flights to handling logistics which makes it a more cost-effective option especially for small to medium-sized businesses that can not afford their own fleet.

2. Flexible & Customized Solutions

You are also offered a high level of flexibility and customization in their services. They can customize solutions for each customer, adjusting schedules, routes, and services based on the urgency, size, or nature of the cargo.

For instance, if you need to ship temperature-sensitive goods, this indirect service can find an airline that offers specialized refrigeration units.

3. More Routes & More Options

Indirect air carriers work with multiple airlines giving them access to a large network of routes. Unlike direct carriers which are limited to their own flight schedules and destinations, indirect carriers can choose from many different options to find the best route for each shipment.

So, your products can also reach remote or less frequently serviced locations. More routes mean faster delivery times and greater flexibility in terms of departure and arrival times.

4. Streamlined Processes

By managing every aspect of air cargo logistics, they streamline the whole shipping process. They handle all the paperwork, compliance, and coordination with airlines. That means you have the liberty to focus on other main aspects of your business. 

IACs also use technology to track shipments in real time and provide businesses with updates on the status of their goods.

What are the Benefits of Being an Indirect Air Carrier?

Being an indirect air carrier offers many significant benefits, particularly for companies in the logistics and transportation industries. Here are some of the main advantages.

Access to the Air Cargo Market Without Owning Aircraft

One of the major benefits is that it allows businesses to participate in the air cargo market without the expense of owning or operating aircraft. Air carriers partner with airlines to move goods which means that they do not need to invest in planes, pilots, or maintenance.

Increased Flexibility and Service Offering

Indirect carriers are not tied to the routes or schedules of a single airline. Instead, they can work with multiple airlines giving them the flexibility to offer a broader range of routes, schedules, and services to their customers.

Multiple Revenue Streams

If you’re an IAC, you can easily enter into new revenue streams by offering air freight services alongside other supply chain solutions. Many indirect air carriers operate as freight forwarders, third-party logistics providers and customs brokers.

Indirect Air Carriers List in China

Here are some prominent indirect air carriers that operate in China.

FAQs

What is an Indirect Air Carrier in TSA?

Well, this is a person or organization that does not possess a Federal Aviation Administration (FAA) air carrier operating certificate but engages indirectly in air transportation of goods. IAC utilizes the services of a certified air carrier to transport cargo thus acting as intermediaries in the air freight process.

What is an Indirect Air Carrier Example?

Companies like AIT Worldwide Logistics and Bansar are notable examples. They facilitate the transport of goods by partnering with certified airlines. Also handle logistics and regulatory compliance.

What is the difference between IATA and IAC?

• IATA or International Air Transport Association and IAC serve different roles in air transportation. IATA is a trade association that represents airline interests globally to focus on promoting safe, efficient, and economical air transport. 
• In contrast, an IAC is a specific designation for companies involved in the air cargo supply chain without owning aircraft.

What is the Indirect Air Carrier Standard Security Program (IACSSP)?

Indirect Air Carrier Standard Security Program (IACSSP) is a security protocol mandated by the TSA for IACs. This program outlines specific security measures and practices that indirect carriers must implement to ensure the safe transport of cargo.

Conclusion

If you’re a business and want to ship electronics products internationally, an indirect air carrier will be your ideal solution. You don’t have to take the pain of flight management, security checks & customs paperwork. IAC can offer you better rates and more routes for this whole process.