Air Waybill

How to Determine Date of Shipment on an Air Transport Document?

Ozgur Eker (CDCS) Air Waybill, How to Work With a Letter of Credit, Letter of Credit Basics, Letter of Credit Documents ,
Date of Shipment on an Air Transport Document

An air waybill is a document covering the carriage of goods by plane from one airport to another.

Date of shipment is one of the key definitions in a letter of credit transaction. It is used to determine

  • whether shipment made on time or not (in other words a late shipment has been effected or not),
  • whether documents presented within the presentation period or not (in other words a late presentation has been effected or not),
  • maturity date of the time draft,
  • maturity date of a deferred payment letter of credit.

Date of shipment can be determined in two ways on an air waybill.

Option 1 => There is no actual date of shipment notation on the air waybill:

  • The date of issuance of the air waybill will be deemed to be the date of shipment.

Option 2=> Air waybill indicates, by notation, the actual date of shipment: Notation date will be deemed to be the date of shipment as specified below:

  • Date of the actual date of shipment notation/stamp => this date will be deemed to be the date of shipment.
How to determine date of shipment on an Air Transport Document?
An air waybill with a separate actual date of shipment notation. The date of shipment on this air waybill is 15.05.2014 as indicated on the notation.

What are the Differences Between Air Waybill and Bill of Lading?

Ozgur Eker (CDCS) Air Waybill, Bill of Lading, Letter of Credit Documents, Logistics ,
Differences Between Air Waybill and Bill of Lading

What Does Bill of Lading Mean in Export and Import Businesses?

Bill of lading (B/L) is a transport document, which is used in port-to-port sea shipments, issued and signed by a carrier or its agent, generally on a pre-printed carrier’s bill of lading format, evidences the terms and conditions of the carriage of goods between port of loading and port of discharge.

What are the Main Features of a Bill of Lading (B/L)?

  • A negotiable bill of lading represents the title of the goods and normally has to be surrendered at the port of discharge to the carrier’s agent to obtain delivery of the goods.
  • A bill of lading is regarded as a negotiable document if issued “to order and black endorsed” or “to order of a (named party)”.
  • A bill of lading issued and signed by a carrier or an agent on behalf of the carrier is called a master bill of lading.
  • A bill of lading issued and signed by a freight forwarder is called a house bill of lading.
  • There are certain differences exist between a master bill of lading and house bill of lading.
  • A bill of lading generally issued subject to Hague Rules, The Hague-Visby Rules and US COGSA (US Carriage of Goods by Sea Act 1936. ) etc.
  • Because a bill of lading is used in port-to-port sea shipments, it can be used in conjunction with all the trade terms defined in Incoterms 2010 rules.

Figure 1 : Bill of Lading Sample

Figure 1 : Bill of Lading Sample

What Does Air Waybill Mean in Export and Import Businesses?

An air waybill (AWB) is a transport document, which is used in air shipments, issued and signed by an airline cargo carrier or its agent, generally on a pre-printed air waybill format, evidences the terms and conditions of the carriage of goods over routes of the airline carrier(s).

What are the Main Features of an Air Waybill (AWB)?

  • An air waybill, contrary to bill of lading, is not a document of title, as a result it is not a negotiable document. The carrier’s agent delivers goods by approving the identity of the consignee without requesting surrender of the original air waybill.
  • An air Waybill is not a negotiable document as a result it cannot be issued “to order and black endorsed” or “to order of an issuing bank”. An air waybill can only be consigned to a “named company”.
  • An air waybill can be issued and signed by a carrier or an agent on behalf of the carrier.
  • Alternatively it can be issued and signed by a freight forwarder. But carrier air waybill and forwarder air waybill have some differences. For more information please read my article “What is the difference between MAWB (Master Air Waybill) and HAWB (House Air Waybill)?“
  • An air waybill generally issued subject to Warsaw Convention, Hague amendment, Montreal Convention, etc.
  • An air waybill should be used in airport-to-airport shipments, as a result it cannot be used in conjunction with the incoterms available only sea shipments such as FAS, FOB, CFR and CIF. For further information please look at “What happens if a letter of credit calls for a wrong Incoterms?“.

Figure 2 : Air Waybill Sample

Figure 1 : Master Air Waybill Sample

What are the Differences Between Air Waybill and Bill of Lading?

Air WaybillBill of Lading
Air Waybill:
Air waybill should be used in air shipments.		Bill of Lading:
Bill of lading should be used in port-to-port sea shipments.
Air Waybill:
Air waybill is not a document of title.		Bill of Lading:
Negotiable bill of lading is a document of title. At least one original bill of lading must be surrender to collect the goods from the carrier.
Air Waybill:
Air Waybill cannot be issued "to order and black endorsed" or "to order of an issuing bank".		Bill of Lading:
Bill of lading can be issued "to order and black endorsed" or "to order of an issuing bank".
Air Waybill:
Air waybill generally issued subject to Warsaw Convention, Hague amendment, Montreal Convention, etc.		Bill of Lading:
Bill of lading generally issued subject to Hague Rules, The Hague-Visby Rules and US COGSA (US Carriage of Goods by Sea Act 1936. ) etc.
Air Waybill:
Air waybill cannot be used in conjunction with the incoterms available only sea shipments such as FAS, FOB, CFR and CIF.		Bill of Lading:
Bill of lading can be used in conjunction with all of the incoterms available.

What is the Difference Between MAWB (Master Air Waybill) and HAWB (House Air Waybill)?

Ozgur Eker (CDCS) Air Waybill, Logistics , ,
What is the Difference Between MAWB (Master Air Waybill) and HAWB (House Air Waybill)?

What Does Master Air Waybill Mean in Export and Import Businesses?

Master air waybill (MAWB) is a transport document, which is used in air shipments, issued and signed by the air cargo carrier or its agent, generally on a pre-printed carrier’s air waybill format, evidences the terms and conditions of the carriage of goods over routes of the carrier(s).

Master waybills can also be identified as an airline air waybills, with pre-printed issuing carrier identification.

What Are the Main Features of a Master Air Waybill (MAWB)?

  • Master air waybill generally issued on a pre-printed air waybill form of an issuer carrier.
  • Master air waybill issued and signed by the carrier or an agent on behalf of the carrier.
  • A master air waybill (MAWB) is subject to IATA Rules and one of the the international air conventions (Warsaw Convention, Hague amendment, Montreal Convention, etc.)
  • Master air waybill is signed by the actual carrier and states the terms and conditions of the carriage, as a result consignee may have protection in case the goods are damaged or lost in transit.

Figure 1 : Master Air Waybill Sample

Figure 1 : Master Air Waybill Sample

What Does House Air Waybill Mean in Export and Import Businesses?

House air waybill (HAWB) is a transport document, which is used in air shipments, issued and signed by a freight forwarder, generally on a natural air waybill format, evidences the terms and conditions of the carriage of goods as specified by the freight forwarder.

Neutral air waybills, without pre-printed identification of the issuing carrier can be used to issuance of house air waybills.

What Are the Main Features of a House Air Waybill (HAWB)?

  • House air waybill generally issued on a natural air waybill format.
  • House air waybill issued and signed by a forwarder without indicating any signing authority either carrier or as agent of the carrier.
  • A house air waybill (HAWB) may or may not be subject to IATA Rules and one of the the international air conventions (Warsaw Convention, Hague amendment, Montreal Convention, etc.)
  • House air waybill is signed by the forwarder and states the terms and conditions of carriage for the forwarder company’s perspective. House air waybill does not contain actual carrier’s carriage contract, as a result shipper stated on the house air waybill is not the direct participant of the carriage contract indicated on the master air waybill.

Figure 2 : House Air Waybill Sample

Figure 2 : House Air Waybill Sample

Differences Between Master Air Waybill and House Air Waybill

Master Air WaybillHouse Air Waybill
Master Air Waybill:
Issued by the actual carrier, such as Korean Airlines, Emirates Airlines etc.		House Air Waybill:
Issued by the forwarder company, such as XYZ Forwarding Ltd, etc.
Master Air Waybill:
Signed either by the carrier or an agent of the carrier.		House Air Waybill:
Signed by the forwarding company without any agency indication of the carrier.
Master Air Waybill:
Issued on a pre-printed form of an actual carrier's air waybill.		House Air Waybill:
Issued on a naturel form of an air waybill.
Master Air Waybill:
Always subject to IATA Rules and one of the the international air conventions (Warsaw Convention, Hague amendment, Montreal Convention, etc.)		House Air Waybill:
May or may not be subject to IATA Rules and one of the the international air conventions (Warsaw Convention, Hague amendment, Montreal Convention, etc.)
Master Air Waybill:
States the terms and conditions of the carriage, as a result consignee may have protection in case the goods are damaged or lost in transit.		House Air Waybill:
States the terms and conditions of the forwarding company, as a result consignee will not be having a legal protection in case the goods are damaged or lost in transit.
Master Air Waybill:
States only MAWB number.		House Air Waybill:
States both MAWB and HAWB number.

Air Waybill

Ozgur Eker (CDCS) Air Waybill, Letter of Credit Documents ,
Air Waybill

On this page I will try to explain you air waybill and its applications in letters of credit transactions.

Issuing banks mention air transport document as “Air Waybill” (AWB), or “Air Consignment Note” in letters of credit.

An air waybill is a document covering the carriage of goods by plane from one airport to another. The original for shipper, usually original No. 3 of the air waybill remains with the seller for submission to the bank. (1)

Air waybill is “the shipping document used for the transportation of air freight. It includes conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges.”

It is generally similar to a straight non-negotiable bill of lading and is used for similar purposes. (2)

Important Note: Air transport document is not a document of title to goods, which means that air waybill is a non-negotiable transport document.

As a result, air carriers will be able to deliver goods to the consignee without obtaining one original copy of air waybill.

For this reason, exporters and banks (issuing bank and confirming bank) have to be very careful when working with a letter of credit demanding an air waybill as a transport document, because neither exporters nor banks could secure goods as a collateral.

What are the Functions of an Air Waybill?

An air waybill serves the following functions:

  • to document the contract of carriage
  • to prove receipt of goods for shipment
  • certificate of insurance (if goods insured under carrier policy)
  • it serves as a customs declaration
  • it is a waybill (i.e. it guides carrier personnel in the handling and delivery of the
    goods) (3)

How to Use Air Waybill in Letters of Credit Transactions:

An air transport document, however named, must appear to:

  1. indicate the name of the carrier and be signed by:
    – the carrier, or
    – a named agent for or on behalf of the carrier.
  2. indicate that the goods have been accepted for carriage.
  3. indicate the date of issuance. This date will be deemed to be the date of shipment unless the air transport document contains a specific notation of the actual date of shipment, in which case the date stated in the notation will be deemed to be the date of shipment. Any other information appearing on the air transport document relative to the flight number and date will not be considered in determining the date of shipment.
  4. indicate the airport of departure and the airport of destination stated in the credit.
  5. be the original for consignor or shipper, even if the credit stipulates a full set of originals.
  6. contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage. Contents of terms and conditions of carriage will not be examined.

For the purpose of this article, transhipment means unloading from one aircraft and reloading to another aircraft during the carriage from the airport of departure to the airport of destination stated in the credit.

An air transport document may indicate that the goods will or may be transshipped, provided that the entire carriage is covered by one and the same air transport document.

An air transport document indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment. (4)

Special Hints Regarding the Air Waybill From ISBP (International Standard Banking Practice):

  1. If a credit requires presentation of an air transport document covering an airport-to-airport shipment, UCP 600 article 23 is applicable.
  2. If a credit requires presentation of an “air waybill”, “air consignment note” or similar, UCP 600 article 23 applies. To comply with UCP 600 article 23, an air transport document must appear to cover an airport-to-airport shipment but need not be titled “air waybill”, “air consignment note” or similar..
  3. The air transport document must appear to be the original for consignor or shipper. A requirement for a full set of originals is satisfied by the presentation of a document indicating that it is the original for consignor or shipper.

Air Waybill Sample:

Air waybill sample

References:

  1. http://definitions.uslegal.com/a/air-waybill/
  2. Documentary Credits, Collections and Bank Guarantees, Swedbank, Page: 32
  3. Transportation Best Practices Manual, PF Collins International Trade Services, Page:30
  4. UCP 600