Airway Bill - Explained
What is an Airway Bill?
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What is an Air Waybill?
An Airway Bill, also known as an "airway consignment note", is a non-negotiable (cannot be transferred to others for value) document identifying goods being shipped with an international airline (carrier). It is a receipt issued by a carrier to a shipper that evidences a contract between a shipper and a carrier to transport goods via air travel. Airway bills are regulated by the International Air Transport Association (IATA).
- Note: The airway bill is different from a standard Bill of Lading, used in other types of carrier contract. Unlike a bill of lading, the airway bill is not a document of title (document demonstrating ownership of the named goods) and is not negotiable.
How is an Air Waybill Used?
The airway bill is assigned an eleven-digit number or code - identification number of the air transport company (3 digits) and the shipping code (8 digits). The shipper can use this code to reference the shipment when checking its status or making additional bookings. The airway bill must also contain the following information:
- The identification of carrier(s), dispatch from the airport, and the entire route of transport,
- Details of the contracting party, the recipient, and air transport company,
- The IATA code along with IATA agent details who was in charge of transport,
- Transport insurance details, and
- Detailed transport data like costs, freight, delivery dates, the amount charged, etc.
The airway bill has 9 sheets and comes in 6 colors.
- Green - On top, an original, the issuing carrier's copy
- Pink - Second in the stack, an original, the consignee's copy
- Blue - Third in the stack, an original, the shipper's copy.
- Brown - Fourth in the stack, a copy, serves as the Delivery Receipt or Proof of Delivery
- White - Four copies at the bottom of the stack, used for various purposes.
- Yellow - Proof that goods are received by the receiver, along with a signed certificate.
The gist of the air waybill is summarized in the following points, the air waybill performs the following functions:
- It makes a formal contract of transportation of goods, thereby, certifies the bill of lading.
- It confirms that the merchandise has been received.
- It indicates the service costs.
- It notices on-demand insurance coverage.
- It details the situation of transport and merchandise handling.
- It describes the conditions agreed upon between the parties.
- It identifies the specifics of carriage.
- It acts as a declaration document at customs.
Hence, the air waybill must contain the following details