What is an airway bill: Role, types and importance in shipping

AWB, or airway bill, is an essential document for air freight operations. It basically serves as a shipment tracker for both sender and receiver who want to monitor their shipment. It is non-negotiable, legally binding and contains information about goods being transported.

This number is usually provided by the airlines shipping the goods. An airway bill has an 11-digit unique number that helps in identifying and tracking shipments. Here how this number can be decoded:

• The first three digits of the airway bill number stand for the airline prefix. 
• The next seven digits are the serial number of AWB. 
• The last digit is the remainder when the seven-digit number is divided by 7.

The airway bill contains various information such as:

• Airway bill number
• Shipper’s details
• Consignee’s details
• Carrier's details
• Description of goods
• Nature of goods
• Special instructions
• Charges and payment information
• Routing information
• Declaration and signature
• Consignment control

Sample Format of Airway Bill 

Here is the sample format of the airway bill used for the shipment of goods via air freight.

There are different types of airway bills. Let us understand all these types in detail:

House Airway Bill (HAWB)

A house airway bill (HAWB) is a type of airway bill issued by the freight forwarder to importers and exporters after their shipment is picked up, especially in air cargo shipments. It serves as a contract between the freight forwarder and the shipper, detailing the terms and conditions of the shipment and the description of the goods being shipped. 

A HAWB is typically issued for consolidated shipments, where the freight forwarder groups multiple small shipments from various shippers into one larger shipment for transport.

 Master Airway Bill (MAWB) 

The freight forwarder once delivered the shipment to the shipping company or primary carrier, and then they issued a master airway bill. The MAWB consolidates all shipments from the various freight forwarders and acts as the primary contract of carriage between the freight forwarder and carrier. 

The MAWB contains detailed information about the air cargo, such as special requirements, routes, terms and conditions and more. Once the MAWB has been issued, the carrier assumes the responsibility for the transportation of goods and ensures the timely and safe delivery to designated locations.

 Electronic Airway Bill (EAWB) 

The International Air Transport Association (IATA) introduced the Electronic Airway Bill (EAWB) to streamline the documentation process and reduce paper usage. With EAWB, crucial information related to shipment exchange is electronically transferred between the freight forwarder and cargo operator. 

By adopting digital processes for documentation, EAWB helps cut processing costs and time. It also helps improve efficiency and promote accuracy in cargo handling.

The airway bill comes in various colours, and each colour performs a specific function in the shipping process.

• Green Colour: The first copy of an airway bill, which is a carrier’s copy, is usually green. This copy contains crucial information about the shipment. It acts as a reference for carriers throughout the transportation process.
• Pink Colour: This is the second copy, which is usually pink in colour, issued to the recipient or consignee of the shipment. It provides important details about the content of the shipment to the consignee.
• Blue Colour: The third copy, which is issued to the shipper or party responsible for sending goods, is usually blue in colour. This copy is helpful for shippers to maintain records and also contains crucial information such as origin, destination country, etc.
• Yellow Colour: The fourth or final copy serves as proof of delivery. It is provided to the consignee upon the delivery of goods and confirms that the goods have been delivered in good condition.

There are various functions of the airway bill number, some of which are listed below:

• The airway bill number acts as a unique barcode that facilitates the identification of goods being transported.
• The AWB number enables real-time tracking of the shipment during its transit. It allows all parties involved, the shipper, consignee, freight forwarder and airline, to monitor the shipment's progress and expected delivery time.
• The AWB number is crucial for customs clearance in both the origin and destination countries. Customs authorities use it to verify shipment details and ensure compliance with import/export regulations.
• The AWB is an important legal document in the air cargo industry. In case of disputes, the AWB number can be used to verify the terms and conditions of shipment and determine the parties' responsibilities.
• The airway number is used as proof of shipment. When the shipper delivers goods to the airline, the AWB serves as evidence that the airline has received the goods and is responsible for their transportation.
• The airway number also serves as proof of shipment for insurance claims in case of damage or loss to the shipment. It helps insurance providers assess the situation and expedite the claim process.
• The airway bill also acts as an important billing document, including the charges for transportation, handling fees and any other costs.

The airway bill number is a unique 11-digit number assigned to the shipment by the carrier. This number is very useful for shipment tracking and monitoring purposes. With the AWB number, shipping companies can easily monitor the movement of consignment throughout the shipping process. 

The airway bill number is mentioned on the airway bill. The steps for tracking the consignment using the airway bill number are mentioned below:

• Step 1: To track the shipment, visit the shipping company's website.
• Step 2: Go to the tracking shipment option.
• Step 3: Enter the AWB number in the asked details and click on the “Submit” button.
• Step 4: The website will display the exact information of the shipment.

Some common errors happen while filling out the airway bill, such as:

• Providing incorrect or incomplete information, such as wrong airport codes, names, addresses, etc., can lead to lost cargo.
• If the package contains fragile items, then it should be disclosed in the special instruction category.
• Inadequate packing information can also lead to mishandling and damage.
• Complying with the regulations is crucial for shipment, as failure to do so can result in additional fines and penalties from the authorities.

The airway bill is a key document in the air freight industry, serving multiple critical functions throughout the shipping process. It works as a contract of carriage between the airline and the shipper, promoting the safe and timely transportation of goods. 

This airway bill explained blog highlights its role as a unique identifier for each shipment, enabling real-time tracking, facilitating customs clearance and more.

In addition to this, businesses involved in import and export should also consider investing in marine cargo insurance. To help businesses pick the best, marine insurance in India is available. This marine insurance plan helps safeguard business assets against various unforeseen situations, such as theft, damage, etc., during transit.

TATA AIG offers marine insurance plans that are customised to meet your unique business needs. We have a marine open policy that offers coverage for cargo across multiple shipments during a year. It is a cost-effective marine insurance plan for businesses that make multiple shipments during a year.

Can I download my electronic airway bill? 

Yes, you can download your electronic Airway Bill (eAWB) from the airline’s website or through the freight forwarder's platform. Most carriers offer the option to access and download the eAWB once it has been issued,

What to do if I forgot my airway bill tracking number? 

If you have forgotten your airway bill tracking number, you can retrieve it by contacting the airline or freight forwarder directly. Provide them with details like the shipment’s sender/consignee information, flight details, or shipment date, and they should be able to assist you in locating the AWB number.

Do insurance companies also require an airway bill number?

Yes, insurance companies often require the airway bill number when processing claims related to lost, damaged or delayed goods during transit.