An air waybill, also known as AWB, is a shipping document used in international air freight. Similar to the bill of lading, it provides detailed information about a shipment as well as enables tracking throughout its journey. The bill has several copies, so each party involved in the shipment has its own record.
And you know what? With modern technology, electronic air waybills (e-AWBs) have made the process of shipping goods by air much more convenient.
Let’s first explore the functions of AWBs.
Key functions
An air waybill is widely used in both domestic as well as international air freight shipping. This fundamental document serves several important purposes:
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It acts as an invoice or bill for the freight charges that need to be paid by the recipient or their agent.
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It is a contract between the carrier (airline) and the shipper, outlining the terms and conditions of the transportation.
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When the carrier receives the shipment, an AWB is proof of that receipt. It confirms the goods were handed over in good condition.
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The AWB can be used as a certificate of insurance for the air freight shipment.
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Customs requires the information on it for declaration purposes when the goods are imported or exported.
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It conveys any special handling instructions for the shipment to the carrier.
Contents of an AWB document
As a critical document that accompanies air freight shipments, the AWB contains all the essential details about the shipment. Now that we know it is acting as both a receipt and a contract between the shipper and the carrier, here’s what you’ll typically find on the bill.
Sender and Recipient Details
The bill lists the full names and addresses of the shipper (the person or company sending the goods) and the consignee (the recipient).
Airport Codes
It specifies the 3-letter IATA airport codes for the origin and destination airports where the shipment is picked up and delivered.
Shipment Value
The declared value of the goods being shipped is recorded on the bill.
Item Description
A detailed description of the shipment is provided, including the quantity, weight, dimensions, and materials used for the items and packaging.
Handling Instructions
Any special instructions for handling or transporting the shipment are noted on the bill.
Types of AWBs
Here are two types of air waybills:
Master Air Waybill (MAWB)
When the carrier (airline) issues an air waybill to either the shipper or a freight forwarder who is acting on the shipper’s behalf, this kind of AWB is known as a Master Air Waybill (MAWB).
House Air Waybill (HAWB)
A freight forwarder or agent then issues the HAWB when they are handling a part of the shipment for the shipper. The HAWB provides more details about that specific part of the journey. It outlines the agreement and rules between the shipper and the forwarder for that section.
Electronic air waybill (e-AWB)
When dealing with air freight shipments, numerous accompanying documents need to be managed and tracked. To facilitate this process, the International Air Transport Association (IATA) introduced the electronic air waybill (e-AWB) in 2010.
The e-AWB became the default contract of carriage for all air cargo shipments as of January 1, 2019. It’s part of IATA’s broader e-Freight program which aims to digitize the industry and reduce paper usage.
To guide freight forwarders and other involved parties on integrating the e-AWB into their operations, IATA actually provided a detailed implementation playbook.
How to implement the electronic air waybill (e-AWB)?
To move away from traditional paper-based AWBs, freight forwarders and airlines go through a structured process. The key things involve:
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Freight forwarders and airlines need to sign the Multilateral e-AWB Agreement, which is free, to exchange e-AWBs.
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There is a list of participating airlines and freight forwarders on IATA’s Matchmaker
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Freight forwarders and airlines sign the Multilateral e-AWB Agreement, which is free, to exchange e-AWBs.
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Plan the e-AWB roll-out strategy, including activating freight forwarders in IATA’s Matchmaker. There is a list of participating airlines and freight forwarders on IATA’s Matchmaker.
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Adapt business processes to integrate the new paperless e-AWB operations.
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Using the Internet-based Cargo-XML format recommended by IATA. The older Cargo-IMP standard, although still in use, has been no longer maintained since 2014. Obtain IATA’s Cargo-XML Toolkit for specifications and guidelines on implementing e-AWB.
Final Words
Air waybills are fundamental documents for your international air shipping. Meanwhile, e-AWBs have modernized the air shipping process. They serve as invoices, contracts, and proof of shipment, marking a shift toward digital efficiency in air cargo operations.
Successful air freight shipping requires more expertise and experience in the freight industry. Contact Foresmart now to make it happen.
Frequently Asked Questions (FAQs)
What is the purpose of an air waybill number?
An AWB number, an 11-digit code, enables easy online tracking of air shipment location and status, facilitated by technologies like the e-AWB.
Who issues the air waybill?
AWBs are documents issued by the airlines as proof of receiving goods. The International Air Transport Association (IATA), representing over 80% of global air traffic, oversees these documents.
Who fills out the AWBs?
They are jointly signed by both the shipper and the carrier (airline). The shipper or agent working on their behalf fills out the form, and then the airlines issue the waybill.
