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Air freight policy: detailed explanation

What is an Air Waybill (AWB)?

policy​ Air freight bill (AWB) is a crucial document that accompanies goods shipped via international air freight companies. It provides essential, detailed information about the shipment, enabling easy tracking. Multiple copies of the AWB are made to ensure that the shipment is documented for all parties involved, including the sender, shipper, and consignee. This document is a special type of bill of lading and is also known as an air waybill.

An air waybill (AWB) serves a similar function to a bill of lading, but it is issued in a non-negotiable form, meaning it offers less protection compared to bills of lading. An AWB is a legally binding document that acts as a receipt for the goods by the airline, as well as a contract of carriage between the shipper and the carrier.

It can then be defined as:​

  • The document that accompanies goods shipped by​ Shipping company International, and allows shipment tracking.
  • It serves as a delivery receipt for goods by the airline, as well as being a transport contract between the shipper and the carrier.
  • It is a legally binding agreement that is enforceable under the law.

Origin and importance of the Air Waybill (AWB)

The basis for the air waybill (AWB) was established by the Warsaw Convention of 1929, and this document serves as the formal legal contract between the shipper and the airline. The AWB contains essential information such as the names of the shipper and consignee, the departure and arrival airport codes, the value of the shipment, and detailed information about the quantity and description of the goods. These elements make the air waybill a vital and indispensable document for organizing air freight operations.

Contents of an Air Waybill (AWB):

  1. Airline name: Information about the air carrier responsible for the shipment.
  2. AWB Number: An 11-digit number used to uniquely identify a shipment, facilitating tracking. This number ensures that each shipment can be easily identified at all stages of transit.
  3. Sender: Name and address of the sender, including contact details.
  4. Recipient: Name and address of recipient, including contact details.
  5. Departure airport: The airport from which the shipment departs.
  6. Arrival airport: The airport to which the shipment is destined.
  7. Flight number: The flight number of the aircraft carrying the shipment.
  8. Quantity of items: The number of parcels or units in the shipment.
  9. Weight of items: The actual weight of all items sent.
  10. Shipping weight: The weight that is considered when calculating shipping charges.
  11. Air freight charges: The specific charges for transporting the shipment, as arranged.
  12. Item name: Description or name of products sent.
  13. Additional fees: such as fuel fees, security fees, and other extra costs.

What is the air waybill number?

An air waybill (AWB) number is a unique identification code used to track your shipment. This number consists of 11 digits divided into three parts, as shown in the table below:

AWB number details

Itemthe details
number AWB11 Numbers
Value99953729071
The first three numbersCarrier/Airline Prefix: 999
The next seven numbersAWB Serial Number: 5372907
last numberCheck the number: The remainder equals when the serial number is divided by 7. For example, when 5372907 is divided by 7, the remainder is: 1.

Benefits of an air waybill:

  1. Proof of shipment: Used as proof of the shipment process and the carrier's receipt of the items.
  2. Carriage contract: This is considered a contract that links the shipper with the airline.
  3. Shipping invoice: This is an invoice that contains details of the costs related to shipping.
  4. Legal document: It contains information about the parties involved and serves as a legal document.
  5. Shipping instructions: These instruct the carrier to ensure the shipment is sent correctly.
  6. Customs declaration: Used as a document for customs declaration.
  7. Contact details: Contact information is provided for all relevant parties.
  8. Management instructions: Contains instructions on how to handle, send, and deliver items.

The difference between an air waybill and a bill of lading

An air waybill is a legal document that proves the transfer of goods from the shipper to the carrier, but it does not transfer ownership of the shipment. On the other hand, bill of lading They are used in maritime shipping and serve as proof of ownership of goods. Although both documents are contracts issued by shipping companies, each has its own specific uses.​

Standard

bill of ladingAir waybill
Shipping typeUsed in sea, land and rail shippingDesigned for air freight
NegotiabilityIt can be negotiable or non-negotiable.Non-negotiable
the signatureSigned by the shipper, carrier, and recipientSigned by the shipper and carrier
Its functionIt serves as an address and delivery service for goods.It is considered a legal contract of carriage
Delivery termsIt can be used with all international terms of dealingDo not use with international delivery terms such as FAS, FOB, CIF, and CFR

How to obtain an Air Waybill (AWB) number and its importance

Prior to 2010, the process of issuing an air waybill (AWB) relied heavily on paper documents, requiring significant time and manual effort. With the introduction of the electronic air waybill (e-AWB) launched by the International Air Transport Association (IATA), this dynamic changed. Since January 1, 2019, this electronic waybill has served as the default contract for air freight shipments.

Steps to obtain a paper air waybill (AWB):

  1. Issuance of the bill of lading: The carrier issues the bill of lading upon receipt of the goods that have passed customs procedures.
  2. Sending the policy: The sender receives the paper policy and sends it to the recipient via his bank, especially if the transaction is made under a letter of credit.
  3. Receiving the shipment: When the goods arrive at their destination, the consignee (agent) receives the shipment and takes a copy of the bill of lading.

Steps for implementing the Electronic Air Waybill (e-AWB):

  1. Registration: Join the e-AWB agreement with shipping and aviation companies.
  2. Technically: Ensure that the technology used supports e-AWB, with the use of the Cargo-XML format.
  3. Data quality: Check the quality of emails using tools such as Cargo-XML AutoCheck. 
  4. Business processes: Adjust processes to adapt to the new paperless way.
  5. Launch e-AWB: Launch the electronic air waybill with a clear strategy to activate shipping companies.

Types of air waybill

  1. Air waybill by contents:
    • Airline waybill: This includes comprehensive details about the carrier, such as its name and logo, as well as its head office address and contact information. It is issued on a standardized form and contains a pre-printed waybill number.
    • Neutral bill of lading: It is similar in design to the airline's bill of lading, but it lacks information about the carrier, making it not obligated to comply with laws and agreements related to air transport.
  2. Air waybill according to issuing authority:
    • Internal Bill of Lading (HAWB): Issued by the shipping company to the sender as proof of receipt of goods and a shipping contract. It is usually neutral, does not contain carrier details, and focuses solely on the relationship between the shipper and the shipping company.
    • Master Bill of Lading (MAWB): Issued by the shipping company to the shipper or freight forwarder, this document contains identifying information and a tracking number. It is the primary document outlining the shipping company's responsibilities in the transportation of the goods.

Copies of the air waybill

Each international air waybill is issued in at least eight different color combinations:

colorcopy
greenCarrier version
blueCharger version
pinkRecipient copy
yello or braonReceipt of goods
white4 or more copies for different purposes, such as customs and airport

These colors help organize documents and facilitate the process of identifying the different copies required by each party involved in shipping.

conclusion

An air waybill is a fundamental document in the world of air transport, contributing to the organization and facilitation of air freight operations. By providing accurate information about the goods, shipper, and carrier, this document ensures the protection of the rights of all parties involved and simplifies customs procedures. Furthermore, the different colors of the versions provide additional assistance in identifying the required documents for each party, thus enhancing the efficiency of the transport process. Understanding the details of an air waybill and using it correctly is a key factor in the success of any shipping operation, making it an integral part of modern supply  shipping This makes them an integral part of modern supply chains.

 

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Bill of lading