When it comes to international trade, there are two major ways of transport and they are sea transport and air transport. There are both pros and cons of these modes of transporting goods. The cost and time taken to ship the goods are the deciding factors of what mode of transport type of goods should be transported through. For eg. When goods are perishable, it is more feasible to ship them by air as they are short-lived. There are many more benefits of shipping through air. In this article, we will discuss some important attributes of airway bill transport for import-export businesses all over the world.

When should an exporter ship by air?

When an exporter has time constraints for shipping the product, shipping by air is the best option. Overseas shipments are highly time-consuming and the only way to send them fast is to ship them by air. Perishable goods, temperature-controlled goods, and live animals are some such examples that are highly time-sensitive.

Benefits of shipping by air

There are many benefits of shipping goods by air, some of the major ones are:

• The fastest option for shipping
• Global access for exporters
• Airlines are reliable transportation partners
• Less risk of damage and theft
• More savings for exporters as the insurance costs are lower

How to prepare a shipment to be sipped via air?

The first step to shipping air cargo successfully is to identify what exactly is being shipped. After the proper identification, the classification and packaging of goods can be done. Thereafter an exporter needs to look into the fees and tariffs that are applicable to the shipment and make the payment. You can consult the applicable tariffs and rules in TACT (The Air Cargo Tariffs & Rules) if you need any guidance. Once you are equipped with the right information, the shipments can be properly labeled and there will not be any issues at any stage of handling it.

IATA (International Air Transport Association) and Airway Bill

The IATA (International Air Transport Association) is the trade association for the airlines in the world. It supports aviation activities in many ways and it also helps formulation and regulation of policies related to aviation issues. Shipments through air cargo involve many rules, regulations, and tariffs. It is very important for each importer and exporter to comply with all of these. One very crucial part of air shipments is an airway bill.

What is an Airway Bill?

An airway bill (AWB) is an agreement of carriage between the carrier and the shipper, it is also the receipt of freight being shipped. It is a signed document on which there are signatures of the shippers and carriers present. There are a minimum of 8 copies of this non-negotiable document needed with every shipment. It is crucial that an airway bill is filled without any errors and with all the correct information. If there are any damages due to incorrect information, the shipper is held responsible for the same. For guidance on how to fill an airway bill properly, you can always consult TACT.

The following information is commonly found in an airway bill:

• Name of Shipper
• Address of the shipper
• Name of Consignee
• Address of Consignee
• Airport code
• Destination airport code
• Value of Shipment (Declared value for customs)
• Number of pieces
• Description of goods
• The gross weight of goods
• Liability limit
• Procedure for claims
• Applicable charges

Who issues an Airway bill?

An AWB is issued by the IATA (International Air Transport Association) which is a trade association that is representative of approximately 80% of the air traffic around the world. It can easily be issued online on the IATA website. On this website, there is a standard agreement available for e-AWBs.

The difference between a bill of lading & Airway bill

• A bill of lading is used when a shipment is moved via ocean whereas an airway bill is used when a shipment is moved by air
• A Bill of lading is proof of ownership of the goods, so the original copy of this document is surrendered when the goods are received.
• A Bill of lading is a negotiable document which is basically the title of goods, whereas an Airway bill is a non-negotiable document
• Both AWB and Bill of Lading are issued after the shipments are inspected and they depart from their respective seaport & airport

What do you need to get an airway bill issued?

There are two types of airway bills issued by IATA and they are:

• A neutral AWB
• An airline-specific AWB

The airline-specific AWBs have the logo of the airline, carrier name, address of the airline head office, and AWB number. Neutral AWBs also have the same amount of information and format just without them being filled in advance. There are many airlines that have stopped issuing paper AWBs, they only prefer e-AWBs.

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