DETAILED CLASSIFICATION OF AN AIR WAYBILL (AWB)

An Air Waybill (AWB) is a document issued by a carrier to confirm that a shipment has been received and is ready for air transport. What is the role of an AWB? How is it classified? What are its key contents and the meanings of terms used on it? Let’s explore these details in the following article.

The Role of an Air Waybill (AWB)

An Air Waybill (AWB) serves two primary functions:

• Receipt of Goods: Confirms that the cargo has been handed over to the carrier.
• Evidence of Transport Contract: Acts as a legal document proving the agreement between the shipper and the carrier.

However, it is important to note that an AWB is not a document of title, unlike a negotiable bill of lading used in ocean freight. Therefore, it cannot be transferred or endorsed to another party. In some special cases, such as when payments are made via Letter of Credit (L/C), additional procedures (e.g., a Letter of Guarantee) may be required. The bank may also need to endorse the AWB on the back to facilitate cargo release.

Once the shipper has handed over the cargo and completed export customs clearance, the carrier issues the AWB. Since air transport is much faster than ocean shipping, the AWB typically travels with the cargo, allowing the consignee to complete import clearance efficiently. The original AWB is issued along with multiple copies for all relevant parties, including the shipper, consignee, and carrier.

Types of Air Waybill (AWB)

There are two main types of AWBs, which are often confused:

1. HAWB (House Air Waybill) – Issued by a freight forwarder to the shipper.
2. MAWB (Master Air Waybill) – Issued by the airline to the freight forwarder.

The process usually follows this sequence: The shipper books a shipment with a freight forwarder, who then issues an HAWB. The forwarder, in turn, books space with an airline and receives an MAWB from the carrier.

Key Contents and Terms on an Air Waybill

An AWB follows the International Air Transport Association (IATA) standard format and includes:

• Shipper (Sender) and Consignee (Receiver) Details
• AWB Number – A unique reference number for tracking.
• Departure and Destination Airports
• Freight Charges, Payment Terms, and Declared Value
• Number of Packages and Cargo Weight
• Carrier’s Terms and Liability Conditions

Conclusion

The Air Waybill (AWB) plays a crucial role in international supply chains, enabling all parties to track and manage cargo efficiently. Understanding the structure and classification of AWBs helps businesses streamline their shipping processes and safeguard their interests during air freight transportation.