Air Waybill (AWB)
By MARSHALL HARGRAVE
Updated Nov 21, 2019
What Is an Air Waybill (AWB)?
An air waybill (AWB) is a document that accompanies goods shipped by an
international air courier to provide detailed information about the shipment and
allow it to be tracked. The bill has multiple copies so that each party involved
in the shipment can document it. An air waybill (AWB), also known as an air
consignment note, is a type of bill of lading. However, an AWB serves a
similar function to ocean bills of lading, but an AWB is issued in non-
negotiable form, meaning there's less protection with an AWB versus bills of
lading.
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.
An airway bill is a standard form distributed by the International Air Transport
Association (IATA).
KEY TAKEAWAYS
An airway bill or AWB is a document that accompanies goods shipped
by an international courier, which allow for tracking.
It serves as a receipt of goods by an airline, as well as a contract of
carriage between the shipper and the carrier. It’s a legal agreement
that’s enforceable by law.
AWBs are non-negotiable instruments and must include the shipper's
name and address, consignee's name and address, destination airport,
and value of contents, among other things.
Air Waybill (AWB) vs. Bill of Landing
AWBs are unlike other bills of lading, in 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.
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 air waybills
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.
Reference:
https://www.investopedia.com/terms/a/airway-bill.asp
