air waybill
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Air waybillFrom Wikipedia, the free encyclopedia
Air Waybill (AWB) or air consignment note refers to a receipt issued by an international airline 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.
Description
The Air Waybill (AWB) is the most important document issued by a carrier either directly or through its
authorised agent. It is a non-negotiable transport document. It covers transport of cargo from airport to
airport. By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is
issued.
AWBs have eleven digit numbers which can be used to make bookings, check the status of delivery, and
current position of the shipment. The number consists of:
1. The first three digits are the airline prefix. Each airline has been assigned a 3-digit number by
IATA, so from the prefix we know which airline has issued the document.
2. The next seven digits are the running number/s - one number for each consignment
3. The last digit is what is called the check digit. It is arrived at in the following manner:
The seven digit running numbers are divided by 7, by using a long division calculation. The remainder
becomes the check digit. That is why no AWB number ends with a figure greater than 6. Air waybills are
issued in sets of different colours. The first three copies are classified as originals. The first original, blue
in colour, is the shipper’s copy. The second, coloured blue, is retained by the issuing carrier. The third,
coloured orange, is the consignee’s copy. A yellow copy acts as the delivery receipt, or proof of delivery*.
The other copies are all white.[1]
There are several purposes that an air waybill serves, but its main functions are:
Contract of Carriage. Behind every original of the AWB are conditions of contract for carriage
Evidence of Receipt of Goods
When the shipper delivers goods to be forwarded, he will get a receipt. The receipt is proof that the
shipment was handed over in good order and condition and also that the shipping instructions, as
contained in the Shipper's Letter of Instructions, are acceptable. After completion, an original copy of the
air waybill is given to the shipper as evidence of the acceptance of goods and as proof of contract of
carriage
Freight Bill
The air waybill may be used as a bill or invoice together with supporting documents since it may indicate
charges to be paid by the consignee, charges due to the agent or the carrier. An original copy of the air
waybill is used for the carrier's accounting
Certificate of Insurance
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The air waybill may also serve as an evidence if the carrier is in a position to insure the shipment and is
requested to do so by the shipper
Customs Declaration
Although customs authorities require various documents like a commercial invoice, packing list, etc. the
air waybill too is proof of the freight amount billed for the goods carried and may be needed to be
presented for customs clearance The format of the air waybill has been designed by IATA and these can
be used for both domestic as well as international transportation. These are available in two forms, viz.
the airline logo equipped air waybill and the neutral air waybill. Usually, airline air waybills are distributed
to IATA cargo agents by IATA airlines. The air waybills show:
the carrier's name
its head office address
its logo
the pre printed eleven digit air waybill number
It is also possible to complete an air waybill through a computerised system. Agents all over the world are
now using their own in-house computer systems to issue airlines' and freight forwarders' own air waybills.
IATA cargo agents usually hold air waybills of several carriers. However, it gradually became difficult to
accommodate these pre-numbered air waybills with the printed identification in the computer system.
Therefore a neutral air waybill was created. Both types of air waybills have the same format and layout.
However, the neutral air waybill does not bear any pre-printed individual name, head office address, logo
and serial number.
[edit]The validity of the Air Waybill
We have seen earlier that the air waybill is a contract i.e. an agreement enforceable by law. To become a
valid contract it has to be signed by the shipper or his agent and by the carrier or its authorised agent.
Although the same individual or organisation may act on behalf of both the carrier and the shipper, the air
waybill must be signed twice one each in the respective carrier and shipper boxes. Both signatures may
be of the same person. This also implies that the air waybill should be issued immediately upon receipt of
the goods and letter in instructions from the shipper.
As long as the air waybill is neither dated nor signed twice, the goods do not fall within the terms of the
conditions of contract and therefore the carrier will not accept any responsibility for the goods. The validity
of the air waybill and thus the contract of carriage expires upon delivery of the shipment to the consignee
(or his authorised agent).
[edit]Responsibility for Completion
The AWB as we have seen is a contract - an agreemeent between the shipper and the carrier. The agent
only acts as an intermediary between the shipper and carrier. The air waybill is also a contract of good
faith. This means that the shipper will be responsible for the haul also be liable for all the damage suffered
by the airline or any person due to irregularity, incorrectness or incompleteness of insertions on the air
waybill, even if the air waybill has been completed by an agent or the carrier on his behalf.
When the shipper signs the AWB or issues the letter of instructions he simultaneously confirms his
agreement to the conditions of contract.
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[edit]Definition of the term Not Negotiable
Waybills are non-negotiable documents unlike bills of lading which are negotiable. The words non-
negotiable are printed clearly at the top of the air waybill. This means that the air waybill is a contract for
transportation only and does not represent (the value of) merchandise mentioned in the box nature and
quantity of goods. The ocean bill of lading, if negotiated may represent (the value of) the goods and must
be endorsed by the party ultimately accepting the goods. Although the AWB is a non-negotiable
document, it can be used as a means of payment. This can be done only through the intermediary of a
bank and only when the carriage is subject to a letter of credit. The air waybill executed according to the
terms of a letter of credit allows the shipper to present the original of the air waybill to the bank and collect
the billed value of the shipped goods from the bank. The amount paid by the bank to the shipper will be
debited to the consignee who ordered the goods. At the destination the carrier will only hand over the
goods to the consignee on receipt of a bank release order from the consignee's bankers.
Air Waybill Number
The AWB number has 11 digits and 3 parts.
The first 3 digits are the Airline Prefix[3][4]
The next 7 digits is the Serial Number of the AWB
The last digit is the Check digit
The check digit is derived by dividing the 7 digit Serial Number by 7. The remainder determines
the Check Digit. Example: Serial Number 8114074 divided by 7 is 1159153 remainder 3.
Therefore the Serial Number + Check Digit is 81140743.[5]
general cargo rateDefinitionRate charged by a carrier to transport cargo when it doesn't qualify for a discounted
special class fee or a commodity fee from the carrier.
Read more: http://www.businessdictionary.com/definition/general-cargo-rate.html#ixzz1uaiAx8Oj
collect charges
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DefinitionDelivery or shipment for which transportation and other charges are paid by
the consignee. Also called charges collect, charges forward, or freight collect.
Read more: http://www.businessdictionary.com/definition/collect-charges.html#ixzz1uajaPY98
disbursement - amounts paid for goods and services that may be currently tax deductible
Special cargo means cargo which requires special procedures for acceptance, handling and loading. The main types of special cargo are :
Dangerous Goods Fragile Cargo Heavy/Outsized Cargo Human Remains Live Animals Magnetized Materials Perishable Cargo Valuable and Vulnerable Cargo Wet Cargo
DANGEROUS GOODS
Dangerous goods are articles and substances that are capable of posing a significant risk to health, safety or property. They can be carried by air when the risk they pose is reduced to an acceptable level by limiting the quantity per package, and by packing in such a manner that the package will not fail during normal transit. Dangerous goods are classified according to the danger to which they give rise. A hazard class identifies each particular type of danger. There are nine hazard classes, some of which are further divided into divisions. A summary of the classes and divisions is as follows:
Class 1: Explosives
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Division1.1 Articles and substances with a mass explosion hazard1.2 Articles and substances with a projection hazard1.3 Articles and substances with a fire or minor blast hazard1.4 Articles and substances with no significant hazard1.5 Very insensitive substances which have a mass explosion hazard1.6 Extremely insensitive substances which do not have a mass explosive hazard
Class 2: Compressed Gases
Division2.1 Flammable gas2.2 Non-flammable gas2.3 Toxic gas
Class 3: Flammable Liquids
Class 4: Flammable Solids
Division4.1 Flammable solids4.2 Spontaneously combustible4.3 Dangerous when wet
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Class 5: Oxidizing substances and Organic Peroxides
Division5.1 Oxidizing substances5.2 Organic Peroxides
Class 6: Toxic and Infectious Substances
Division6.1 Toxic substances6.2 Infectious substances
Class 7: Radioactive Materials
Class 8: Corrosive Materials
Class 9: Miscellaneous Dangerous Goods
Dangerous goods are not acceptable unless the shipper has certified that all the shipment complies fully with the applicable dangerous goods regulations. All articles must be declared on a form entitled 'Shipper's Declaration for Dangerous Goods'.
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FRAGILE CARGO
Fragile cargo are items which may easily be damaged, if exposed to jolting, dropping, bumping or rough handling during transportation. Typical fragile commodities are antiques, works of art, chinaware, glassware, earthenware, cast-iron articles, TV and radio tubes, sculptures, etc. There are 4 types of fragile cargo : 1. Solid items i.e. glassware, chinaware, TV tubes2. Solid items containing normal liquids i.e. bottles of shampoo3. Solid items containing dangerous liquids i.e. bottles of alcohol, paints, perfumes4. Bulky and easily damaged aircraft components i.e. flaps, ailerons and elevators.
Fragile cargo shall be accepted only if securely packed in containers made of solid material such as wooden cases, preferably new ones. If the container is breakable, e.g. glass, it should be surrounded by enough absorbent material to absorb any liquid in the container, should it be broken. Make sure that each package is marked with the 'Fragile' and 'This Side Up' labels. If any special handling and/or stowing is required, this must be indicated on the package as well as on the air waybill.
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HEAVY / OUTSIZED CARGO (HEA / BIG)
Heavy Cargo is defined as items of weights and/or dimensions exceeding limits. Outsized cargo is defined as individual cargo items of a size/weight that does not allow it to be loaded in the lower compartments or on one pallet. For both heavy and outsized cargo, the 3-letter code "BIG" shall be printed in the handling information box of the air waybill. Outsized cargo will normally demand certain special arrangements to be made with regard to ground equipment, loading/unloading procedures and ground stops. The extent of such arrangements depends on the shape and weight of the cargo item to be carried. Therefore the acceptance of outsized cargo is subject to prior approval. Similarly transportation of heavy cargo often involves special loading arrangements, space for such shipments shall always be requested in advance.
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HUMAN REMAINS (HUM)
Human corpses may only be accepted for carriage provided they are accompanied by a Death Certificate issued by the appropriate authorities in the country of death. All laws, ordinances or governmental rules and regulations in the country of departure, transit and destination regarding carriage of human remains must be complied with. As the stated rules are generally complicated and subject to frequent revisions, shippers can obtain all advice from the appropriate authorities involved.
Uncremated human remains must be contained in a soldered inner coffin of lead or zinc, which is inside a wooden one to prevent damage, and covered by canvas so that the nature of contents is not apparent. Cremated human remains must be shipped as funeral urns that are efficiently protected against breakage by cushioning packing. An additional Cremation Certificate from the crematorium is required.
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LIVE ANIMALS (AVI)
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The acceptance of live animal consignments is subject to the conditions as described in the IATA's Live Animals Regulations and to TG's Regulations which are closely related to the type of animals, type of aircraft, temperature at origin, en-route and destination, and availability of animal attendant. The conditions applicable to acceptance of live animals are as follows:
a) Health and condition of animals: Animals in a consignment must not show any sign of illness. They must be well fed and watered. The carriage of animals in an advanced state of pregnancy is generally prohibited.
b) Packing: Packing must be clean, leak-proof and escape-proof to allow safe handling during carriage. A special "Live Animals" label shall be affixed with the handling instructions completed.
c) Food and additional articles: Additional articles such as food accompanying the shipment must be included in the chargeable weight and if being shipped as separate pieces, marked as forming part of the shipment.
d) Reservations: Confirmation must have been received of reserved space on flights and possible connecting flight(s) of other airlines up to the airport of destination.
e) Consolidation: Live animals may not be consolidated with other goods but a consolidated shipment may be wholly composed of live animals.
f) Documents: Health documents and Shipper's Certification for Live Animals are generally required for every shipment of live animals.
A live animal shipment at a lower standard than those described in the IATA Live Animals Regulations is not acceptable.
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MAGNETIZED MATERIAL (MAG)
Magnetized material is any material that exerts a magnetic force and has the property to attract or repel other articles, particularly metals. Manufacturers of electronic and magnetic instruments may sometimes quote the "Compass Safe Distance" of their goods on the package.
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PERISHABLE CARGO (PER)
Perishable cargo are items subject to decay, deterioration or decomposition. Typical commodities in this category are chocolate, greens, dairy products, meat, deep frozen products, fish, plants, flower bulbs, serum, vaccine, fruits and vegetables. Perishables shall be accepted without any responsibility for any loss or damage due to changes in climate, temperature, altitude or other ordinary exposures. Shipments of perishables must be prearranged and
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booked all the way through to final destination. If any special handling and/or stowing is required, this must be indicated on the air waybill and a small Attention label should be affixed. Furthermore, each separate package shall be marked with a Perishable and This Side Up label. Also the code PER must be printed in the handling information box of the air waybill.
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VALUABLE CARGO (VAL)
Valuables are shipments having a declared value for carriage (DVC) of USD1000 (or equivalent) or more per gross kilogram, or which contains one or more of the following commodities:
1. Any piece of gold or platinum and articles made of gold or platinum 2. Legal bank notes, securities, shares, traveller's cheques, stamps and ready-for-use bank cards and credit cards. 3. Precious stones: diamonds (including diamonds for industrial use), rubies, emeralds, sapphires, opals and real pearls (including cultured pearls).4. Jewelry consisting of any of the articles under 35. Jewelry and watches made of silver and/or gold and/or platinum.
Valuable shipments shall be given special care all the way through the destination. No shipment of valuable goods is permitted to proceed unless booking has been confirmed en-route. The carriage of VAL should be on a direct flight from departure to destination or at the lowest transfer points. VAL code must be printed in the "Handling Information" box of the air waybill. The packaging must be sufficiently strong to prevent damage caused by the normal handling. Cardboard cartons are not allowed for packaging. Each package must be sealed or steel-banded before acceptance.
VULNERABLE CARGO (VUN)
Vulnerable cargo are goods which are extremely liable to be stolen and are readily marketable such as cameras, watches, souvenirs, television sets, radio sets, semi-precious stones. Vulnerable cargo will be stored, where possible, in strong rooms, or in an area where the shipment can be kept under constant surveillance.
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WET CARGO (WET)
The following shipments are usually identified as wet cargo:
Marine and fresh water products which incorporate salt water, ice and fresh water
.
Shellfish Products which contain water or fluids, such as vegetables, frozen or salted casings/seafood
During air transportation, all loaded items are affected by changes of temperature, humidity, pressure and vibration. Under these conditions, wet cargo may spill or leak, which could lead to corrosion or other damage to the aircraft structure, or damage to other loads. To prevent spillage or leakage, the special requirements for shipments containing wet cargo must be observed. Such shipments must be delivered to the cargo acceptance staff packed absolutely watertight. The most widely used package is the styrofoam box due to its good quality against changes in temperature and low weight. The special handling code for this cargo is specified as WET.
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Live Animals Transportation by Air
Animals have been transported by air since the early 1930's. In today's modern world, carriage of live animals by air is considered the most humane and expedient method of transportation over long distances. IATA ensures that both safety and animal welfare are addressed in all regulatory issues pertaining to transportation of live animals by air.
IATA coordinates the Live Animals and Perishables Board (LAPB) and provides key input to the airline industry on issues such as animal welfare, identification, and animal behavior based on modern science
Live Animals Regulations (LAR)
The Global Standard for the Transportation of Live Animals by Air
The IATA Live Animals Regulations (LAR) is the global standard and the essential guide to transporting animals by air in a safe, humane and in a cost-effective manner. Whether you are a shipper, a freight forwarder, an airline, or an animal care professional, the LAR is a must for transporting animals humanely and in compliance with airline regulations and animal welfare standards.
LAR content
The LAR comprises of a comprehensive classification of 1000’s of animal species along with the container specifications required for their transport. The LAR also includes the most up-to-date airline and government specific requirements pertaining to the transport of live animals along with information on handling, marking & labeling along with necessary documentation when transporting animals by air.
Benefits The most current and efficient practices for your live animal cargo operations Time and cost savings by guaranteeing your shipments are problem-free and avoid delays Compliance of your animal transportation procedures with international or local regulations