Bills of lading are important documents that serve as contracts, receipts, and documents of title for exporters. It is very important to Understand the Air Way Bill for Export made through Air cargos. Exporters should use them with every export so they have evidence of a contract of carriage. But if they aren’t used correctly, their shipments could be delayed.
Today, we’re discussing the air waybill; this is the second article in our series investigating bills of lading. We’ve also covered the Inland Bill Of Lading.
What Is the Air Waybill?
The air waybill (AWB) is a document that controls the routing of an exporter’s cargo while it is in the hands of the air carrier or a consolidator. It is the equivalent of an ocean bill of lading used in air transport.
An air waybill is a contract for carriage; however, the air waybill cannot be negotiated—it may not be consigned “to order of shipper.”
The air waybill identifies the following:
- The shipper
- The consignee
- The carrier
- The notify party
- The freight forwarder
- Routing
- The description, weight, and dimensions of the cargo
- Freight charges
- The Destination Control Statement
Correctly completing your air waybill is a simple yet important task—one you can’t afford to make mistakes on. Without your AWB—or if your AWB has any errors—you could end up with delays in shipments and delays in getting paid.
Understanding an Air Waybill (AWB)
An air waybill (AWB) serves as a receipt of goods by an airline (the carrier), as well as a contract of carriage between the shipper and the carrier. It’s a legal agreement that’s enforceable by law. The AWB becomes an enforceable contract when the shipper (or shipper’s agent) and carrier (or carrier’s agent) both sign the document.
The airway bill will also contain the shipper’s name and address, consignee’s name and address, three-letter origin airport code, three letter destination airport code, declared shipment value for customs, number of pieces, gross weight, a description of the goods, and any special instructions (e.g., “perishable”).
An AWB also contains the conditions of the contract that describe the carrier’s terms and conditions, such as its liability limits and claims procedures, a description of the goods, and applicable charges.
Requirements for an Air Waybill
The International Air Transport Association (IATA) designs and distributes air waybills. There are two types of AWBs—an airline-specific one and a neutral one. Each airline AWB must include the carrier’s name, head office address, logo, and air waybill number. Neutral air waybills have the same layout and format as airline AWBs; they just aren’t prepopulated.
An air waybill has 11 numbers and came with eight copies of varying colors. With the Multilateral Electronic Air Waybill Resolution 672, paper airwaybills are no longer required. Dubbed the e-AWB, it’s been in use since 2010 and became the default contract for all air cargo shipments on enabled trade lines as of 2019
Air Waybill (AWB) vs. Bill of Landing
AWBs are unlike other bills of lading. To Understand the Air Way Bill for Export first remember that they are non-negotiable instruments, meaning that it does not specify on which flight the shipment will be sent, or when it will reach its destination. Bills of lading are legal documents between the shipper of goods and the carrier, detailing the type, quantity, and destination of the goods being carried. Bills of lading also act as a receipt of shipment when the goods are delivered at a predetermined destination. This document accompanies the goods and is signed by authorized representatives of the shipper, the carrier, and the recipient. However, unlike a bill of landing, an air waybill (AWB) is non-negotiable. Being non-negotiable, the AWB is a contract just for transportation and does not cover the merchandise value.
