The air waybill, air consignment note or airway
bill of lading, serves as a receipt for goods and an evidence
of the contract of carriage, but it is not a document of title
to the goods. Hence, the AWB is non-negotiable. Click here
to see sample Air Waybill.
The goods in the air consignment are consigned directly to the
party (the consignee) named in the letter of credit (L/C). Unless
the goods are consigned to a third party like the issuing bank,
the importer can obtain the goods from the carrier at destination
without paying the issuing bank or the consignor. Therefore, unless
a cash payment has been received by the exporter or the buyer's
integrity is unquestionable, consigning goods directly to the
importer is risky.
For air consignment to certain destinations, it is possible to
arrange payment on a COD (cash on delivery) basis and consign
the goods directly to the importer. The goods are released to
the importer only after the importer makes the payment and complies
with the instructions in the AWB.
In air freight, the exporter (the consignor) often engages a freight
forwarder or consolidator to handle the forwarding of goods. The
consignor provides a Shipper's Letter of Instructions which authorises
the forwarding agent to sign certain documents (e.g. the AWB)
on behalf of the consignor.
The AWB must indicate that the goods have been accepted for carriage,
and it must be signed or authenticated by the carrier or the named
agent for or on behalf of the carrier. The signature or authentication
of the carrier must be identified as carrier, and in the case
of agent signing or authenticating, the name and the capacity
of the carrier on whose behalf the agent signs or authenticates
must be indicated.
The AWB is issued usually in set of twelve copies. Copies 1, 2
and 3 of AWB are originals and have the same validity.
The originals are usually marked as:
Copy 1 - Original for Carrier |
Original 1 - (For Carrier) | |
Copy 2 - Original for Consignee |
OR | Original 2 - (For Consignee) |
Copy 3 - Original for Shipper |
Original 3 - (For Shipper) |
or similar expressions at the bottom of the airway bill.
Copy 1 or Original 1 is to
be signed by the consignor or its agent.
Copy 2 or Original 2, which is to accompany
the goods through to the airport of destination, is signed
by the carrier and by the consignor or its agent.
Copy 3 or Original 3 is signed by the carrier,
and is handed to the consignor or its agent after the goods
have been accepted for carriage.
If the letter of credit (L/C) stipulates a full set of originals,
the presentation of Copy 3 or Original 3 to the bank will
satisfy the requirement.
The AWB also operates like a through bill of
lading. It can be used in transhipment, that is, unloading and
reloading from one aircraft to another aircraft during the course
of carriage from the airport of departure to the airport of destination
stipulated in the L/C. A set of AWBs issued by the first carrier
usually includes a For Second Carrier copy and a For Third Carrier
copy, which are used if required in transhipment.
The first three digits in the sample Air Waybill represented,
for example, by digits '000', identifies the carrier, and constitute
part of the air waybill (AWB) number (e.g. 000-12345678). The
carrier's agents, such as the freight forwarder, may issue their
own house air waybill (HAWB), the format of which may differ from
the sample air waybill.
The Date of Shipment in
Air Freight
The issuance date of the air waybill (AWB) is considered to be
the date of shipment. If the letter of credit (L/C) calls for
an actual date of dispatch, the AWB must indicate a specific notation
of the date of dispatch, and the date indicated is considered
to be the date of shipment. The expression "Flight/Date [For
Carrier Use Only] Flight/Date" on the sample Air Waybill,
for example, is not considered as a specific notation of the date
of dispatch.
Transhipment Indicated
in Air Waybills
If the air waybill indicates that transhipment will or may take
place, then the transhipment is allowed even if the letter of
credit (L/C) prohibits transhipment, provided that the entire
carriage is covered by one and the same air waybill.
Split Shipment
The split shipment means that portions of a shipment covered by
one air waybill enter the country at different times.
