What Are the Functions of an AWB?

The air waybill has many functions as a required document for air freight, such as:

1. Serves as Evidence of Receipt of Goods 

Once the shipper delivers goods, you'll get a receipt as proof that the delivery was successful and in good condition. It also implies that the shipping instructions (as stated in the Shipper's Letter of Instructions) are acceptable. 

After delivery, the shipper receives the air waybill original copy as proof that the goods were accepted and as evidence of the contract of carriage. 

2. Relays Contact Information Among All Parties

It contains the contact information of all parties involved, like the consignor and consignee. 

3. Forms a Contract of Carriage Between Shipper and Carrier

Every original AWB has conditions of contract for the carriage documents. 

For example, the conditions should:

• Ensure that both parties are clear on their responsibilities.
• Clearly state the carrier’s liability limits concerning loss, delay, and damage.
• Specify the conventions and laws that apply to the cargo.
• State what processes one should follow when cargo is lost, damaged, or delayed.

4. Acts as a Freight Bill

The AWB also highlights the charges involved in the airfreight shipment process. 

It can act as a bill or invoice when accompanied by other required documents like the commercial invoice, packing list, certificate of origin, etc. The original air waybill can also be used for the carrier's accounting.

5. Serves as a Customs Declaration

Although customs authorities require various documents for international shipping. When you present the air waybill for customs clearance, it is evidence of the declared shipment value.

6. Provides a Description of The Goods

It includes the item description, quantity, weight, dimensions, and materials used in items and packaging. 

7. Guides the Handling and Delivery of Goods

The AWB can be a guide for handling goods since it contains the relevant handler instructions. 

8. Tracks the Shipment Using the AWB Number

AWB contains the AWB number, which you can use to track the shipment. Aside from providing a shipment tracking number, it includes serial numbers and barcodes to identify the load electronically. 

That brings us to an important question:

‍Wondering how to get an AWB?
‍
Let’s find out.

You’ll need a AWB if you belong to these categories:

• Shippers: In cases of direct shipment, the shipper may complete the AWB themselves, especially when dealing directly with an airline.

• Freight forwarders: For consolidated shipments, freight forwarders usually complete the MAWB and individual HAWBs for each customer’s goods.

• Airlines or their agents: When shippers book directly with an airline, the carrier or their authorized agent may fill out the AWB based on information provided by the shipper.

• Online platforms: Some airlines and logistics providers offer online platforms where shippers can automatically fill their AWBs, subject to verification.

• Third-party logistics providers (3PLs): When managing shipments on behalf of clients, 3PLs often take responsibility for AWB completion.

Next, we’ll explain who issues the AWB in the shipping process.

The following parties are responsible for issuing an AWB:

• Airlines: When shippers book directly with the carrier, the airline or its authorized agent typically issues the AWB.
• Freight forwarders: In consolidated shipments, freight forwarders issue the master and house airway bills.
• IATA-accredited cargo agents: These authorized agents can issue AWBs on behalf of the airlines they represent.
• Customs brokers: In some cases, customs brokers may assist in issuing AWBs, especially for complex international shipments.
• 3PLs: When managing shipments for clients, 3PLs often handle AWB issuance as part of their service.

So, how do you get your hands on an AWB? 

Let’s break it down.

As a customer, you’d typically get an AWB from the company you choose to handle your shipment. They’ll have a template for you to complete. 

But since eAWBs are the default contract of carriage now, this is how logistics companies can implement electronic air waybills: 

• Sign an electronic agreement with the IATA.
• Download and install the relevant software compatible with Cargo-XML or Cargo-IMP toolkits. 
• Ensure you have provided correct and accurate data. 
• Reach out to your airline partners and ensure they’re onboard and confirm the activation. 

But wait, there’s also an electronic airway bill…

Let’s look into it.

Air waybills can now be generated and completed electronically. This is called an electronic airway bill (e-air waybill or eAWB). The electronic version communicates the same information as the paper AWBs.

But here’s the thing:

eAWBs have become the default contract of carriage for all air cargo shipments. Paper air waybill documents are still accepted, but the IATA and everyone else prefer eAWBs in most cases.

Now that you know what the AWB can be used for, let’s discuss the layout of an air waybill.

Each airline AWB must show the following: 

• The carrier’s name
• The head office address
• Company logo
• The air waybill number — an 11-digit number used to make bookings and track the shipment’s status and location.

In the top-left quadrant of your air waybill document, you’ll see detailed information on the shipper, consignee, agent, departure airport, and airport of destination.

The top-right section of the AWB will convey information for the airline. It’ll either be in the form of printed text and logos or manually-entered information. It’ll also contain customs information and the declared value for carriage.

The document's middle will contain information on the shipment contents, number of items, total charge, gross weight, chargeable weight, and nature and quantity of the goods. 

At the bottom of the air waybill, you’ll find the additional charges and taxes, a place for the shipper or agent to sign, and a section to enter the time, date, and location of execution.

Not sure about the difference between an air waybill and a bill of lading? 

Let’s break it down.

‍
Air Waybill vs. Bill of Lading: What’s the Difference?

AWBs are unlike other bills of lading because they’re non-negotiable documents. Since it’s non-negotiable, the AWB is a contract for transportation and doesn’t cover the value of the merchandise.

What does this mean? 

It doesn’t specify what flight the air freight shipment will be on or when it'll reach its destination. It just accompanies the goods, and only authorized agents of the carrier, shipper, or receiver can sign it.

What about bills of lading? 

This is a legal document (also called a document of title) between the shipper of goods and the ocean freight carrier. It details the type, quantity, and destination airport of the goods. They also act as proof of receipt of the sea freight shipment when the goods are delivered.

What are hAWBs and mAWBs?

There are two types of AWBs: 

A. House Air Waybill (hAWB)

This is an air shipment transport document. They’re issued and signed by a freight forwarder, which is evidence of the freight forwarder’s terms and conditions for the carriage of dangerous goods.

The main features of a house airway bill:

• It is issued in a neutral AWB format.
• They're usually published and signed by a freight forwarder without indicating any signing authority.
• May/may not be subject to the rules of the IATA and one of the international air conventions (Warsaw Convention, Montreal Convention, Hague amendment, etc.)
• States the terms and conditions of carriage from the perspective of the forwarder’s company.
• It doesn’t contain the carriage contract of the actual carrier — the shipper shown on the house airway bill isn't a direct participant in the carriage agreement.

B. Master Air Waybill (mAWB)

The air cargo carrier or agent issues and signs this air shipment transport document. It’s evidence of the terms and conditions of transporting dgoods over the carrier's routes. You can also refer to them as airline air waybills with pre-printed issuing carrier identification.

The main features of a master airway bill:

• Issued on the carrier’s pre-printed air waybill form.
• Prepared and signed by the air carrier or an authorized agent on the carrier’s behalf.
• Governed by IATA rules and applicable international air conventions (such as Warsaw, Hague, or Montreal).
• Signed by the actual air carrier and outlines the terms and conditions of carriage—giving the consignee limited protection if goods are lost or damaged in transit.