I. Nature and Functions of the Air Waybill
The Air Waybill (AWB) is quite different from the Bill of Lading used in ocean shipping but is similar to the International Rail Waybill. It is an important document for cargo transport issued by the carrier or its agent, serving as the transport contract between the consignor and the carrier, and its contents are binding on both parties. The Air Waybill is non-negotiable, and holding an Air Waybill does not imply ownership of the goods.
(1) The Air Waybill is the transport contract between the consignor and the air carrier. Unlike the ocean Bill of Lading, the Air Waybill not only proves the existence of an air transport contract but is itself the cargo transport contract concluded between the consignor and the air carrier. It takes effect upon mutual signature and becomes void after the cargo arrives at the destination and is delivered to the consignee named on the waybill.
(2) The Air Waybill is proof that the carrier has received the goods. The Air Waybill also serves as a receipt for the goods. After the consignor dispatches the cargo, the carrier or its agent will give one copy to the consignor (the consignor's copy) as proof that the goods have been received. Unless otherwise noted, it is evidence that the carrier has received the goods in apparent good order and condition.
(3) The Air Waybill is the bill based on which the carrier collects freight charges. It separately records the charges borne by the consignee, those payable to the carrier, and those payable to the agent, detailing the types of charges.
(4) The Air Waybill is one of the customs declaration documents.
For exports, the Air Waybill is one of the customs clearance documents. When the cargo arrives at the destination airport for import customs clearance, the Air Waybill is usually one of the basic documents for customs inspection and release.
(5) The Air Waybill can also serve as a certificate of insurance.
If the carrier handles insurance or the consignor requests the carrier to arrange insurance, the Air Waybill can also be used as an insurance certificate.
(6) The Air Waybill is a basis for the carrier's internal operations. The Air Waybill travels with the cargo, identifying the goods. It contains information about the shipment's dispatch, transfer, and delivery, based on which the carrier arranges the cargo's transport accordingly.
The original Air Waybill consists of three copies, each bearing terms on the reverse side. One copy is given to the consignor as proof of receipt of the goods by the carrier or its agent; the second copy is retained by the carrier as an accounting record; the final copy travels with the cargo and is used as a basis for checking and receiving the cargo when it arrives at the destination and is delivered to the consignee.
II. Classification of Air Waybills
Air Waybills are mainly divided into two categories:
(1) Master Air Waybill (MAWB). An Air Waybill issued by an air transport company is called a Master Air Waybill. It serves as the basis for the air transport company to handle the cargo's transportation and delivery and constitutes the transport contract between the airline and the shipper. Each shipment of air cargo has its corresponding Master Air Waybill.
(2) House Air Waybill (HAWB). An Air Waybill issued by a consolidator when handling consolidated shipment business is called a House Air Waybill.
In the case of consolidated shipments, in addition to the Master Air Waybill issued by the air transport company, the consolidator also issues a House Air Waybill. The relationships between the parties at this stage are shown in the diagram below.
In this context, the House Air Waybill serves as the cargo transport contract between the consolidator and the shipper, with the parties being Consignors A, B, and the consolidator; while the Master Air Waybill serves as the cargo transport contract between the air transport company and the consolidator, the parties are the consolidator and the air transport company. The cargo owners do not have a direct contractual relationship with the air transport company.
Furthermore, because the consolidator delivers the cargo to the air transport company at the origin, and the consolidator or its agent picks up the cargo from the air transport company at the destination and hands it over to the consignee, the cargo owners also do not have a direct physical handover relationship with the air transport company. III. Contents of the Air Waybill Similar to the ocean Bill of Lading, the Air Waybill also has front-side and back-side terms. Different airlines may have their unique Air Waybill formats. However, unlike ocean Bills of Lading which can vary greatly among shipping companies, the Air Waybills used by most airlines largely follow the standard format recommended by IATA, with minor differences. Therefore, we will only introduce this standard format, also known as the neutral Air Waybill. The columns that need to be filled in are described as follows:
1. Airport of Departure: Fill in the three-letter IATA code for the departure airport or city. This column should correspond with column 11.
1A: IATA unified airline code, e.g., the code for Air China is 999; 1B: Air Waybill number.
2. Shipper's Name and Address: Fill in the shipper's name, address, country, and contact method.
3. Shipper's Account Number: Should be filled in only when necessary.
4. Consignee's Name and Address: Fill in the consignee's name, address, country, and contact method. Unlike the ocean Bill of Lading, because the Air Waybill is non-negotiable, phrases like "To order" are not permitted.
5. Consignee's Account Number: Similar to column 3, fill in only when necessary.
6. Issuing Carrier's Agent Name and City.
7. Agent's IATA Code.
8. Agent's Account Number.
9. Airport of Departure and Requested routing: The departure airport here should correspond with the entry in column 1.
10. Accounting Information: This column should be filled in only when special payment methods apply.
11A (C, E). To: Enter the IATA codes of the first (second, third) transfer point airports.
11B (D, F). By: Enter the carrier for the first (second, third) leg of the transport.
12. Currency: Enter the ISO currency code.
13. Charge Code: Indicates the payment method.
14. Weight Charge (WT/VAL): Two possibilities exist: Prepaid (PPD) or Collect. If prepaid, insert "*" in column 14A; otherwise, fill in column 14. Note: payment for the freight charge and the valuation charge must be consistent on an Air Waybill; for example, if one is payable by the consignor, so is the other.
15. Other Charges: Values including additional miscellaneous charges. They also have two payment methods: Prepaid and Collect.
16. Declared Value for Carriage: Enter the shipper's declared value for transport if required. If the shipper does not declare a value, enter "NVD (No value declared)".
17. Declared Value for Customs: The shipper enters the customs declaration value here, or enters "NCV (No customs valuation)" to indicate no declared value.
18. Airport of Destination: Enter the full name of the final destination airport.
19. Flight/Date: Enter the flight and date on which the cargo is transported.
20. Amount of Insurance: Fill in only when the airline provides insurance agency services and the customer requires it.
21. Handling Information: Generally enter the relevant precautions for the carrier's handling of the cargo, such as "Shipper|s certification for live animals (shipper provides certification for live animals)", etc.
22A--22L Details of cargo rates and charges.
22A. No. of Pieces RCP, Rate Combination Point: Enter the number of packages of the cargo. For example, for 10 packages, enter "10". When a proportional rate or a rate constructed by adding segments is required, enter the IATA code of the rate combination point airport in this column.
22B. Gross Weight: Enter the total gross weight of the cargo.
22C. Weight Unit: Kilograms (kg) or pounds (lb) can be selected.
22D. Rate Class: There are six codes for different air freight rates. They are M (Minimum, minimum freight charge), C (Specific Commodity Rates), S (Surcharge, a class cargo rate higher than the general cargo rate), R (Reduced, a class cargo rate lower than the general cargo rate), N (Normal, the general cargo rate applicable to goods under 45 kg), and Q (Quantity, the general cargo rate applicable to goods over 45 kg).
22E. Commodity Item No.: When specific commodity rates are used, the commodity item number must be entered in this column.
22F. Chargeable Weight: Enter in this column the chargeable weight used by the airline to calculate the freight charge; this weight may be the same as or different from the gross weight of the goods.
22G. Rate/Charge: Enter the rate applicable to the goods.
22H. Total: The value in this column should be the minimum freight charge value or the product of the values in the Rate/Charge and Chargeable Weight columns.
22I. Nature and Quantity of Goods incl. Dimensions or Volume: The dimensions of the goods should be in centimeters or inches, with the dimensions based respectively on the longest, widest, and highest sides of the goods; the volume is the product of the above three sides, in cubic centimeters or cubic inches.
22J. Total number of pieces of goods under this air waybill.
22K. Total gross weight of goods under this air waybill.
22L. Total freight charges for goods under this air waybill.
23. Other Charges: refers to charges other than freight and valuation charges. According to IATA rules, each charge is represented by three English letters. The first two letters are the code for a particular charge; for example, the air waybill fee is represented as AW (Air Waybill Fee). The third letter is C or A, indicating respectively that the charge should be paid to the Carrier or the freight agent (Agent).
24-26. Record the freight charge, valuation charge, and tax amount respectively; there are two options: prepaid and collect.
27-28. Record, respectively, the total amount of other charges due to the freight agent (Due Agent) and to the carrier (Due Carrier).
29. Various charges to be prepaid or collected.
30. Total prepaid and collect amounts.
31. Signature of the shipper.
32. Date of issuance (date), place, and signature of the carrier or its agent.
33. Currency conversion and destination airport charge record.
All the above contents do not necessarily have to be fully entered on the air waybill, nor does IATA object to including other required content in the waybill. However, this standardized document is of positive significance for air cargo operators to improve work efficiency and promote the air cargo industry's move toward e-commerce.
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