What is an Airway Bill (AWB) and Its Difference From a Bill of Lading

Every day, thousands of shipments move around the world. Different pin codes, different quantities, and different sizes, but one thing that remains the same is that they all move along with an Airway Bill (AWB). 

An airway bill is a document that acts as an agreement between all the relevant parties involved in logistics. It contains all the needed information about the shipment and helps the shipper track the parcel’s exact location. 

This blog has been set to understand what AWB is, its number, how one can generate it, and how it differs from a Bill of Lading (BOL). 

So, without further ado, let’s dive into it.

What is an AWB (Airway Bill)?

AWB (Airway Bill), also known as an air consignment note, is a document that acts as a contract between the seller, buyer, and carrier. It can also be used as a certificate of freight insurance, a customs declaration, and an invoice for the shipment.

An AWB includes a lot of important details about the shipment, including the dispatched location, tracking number, number of items in the shipment, mode of payment, and a lot more. We will discuss this in more detail later in the blog. 

Before we get into that, let’s explore an AWB number and what it looks like. 

What is AWB Number and How Does It Look Like

In simpler terms, an AWB number is an 11-digit tracking number available on an airway bill. A shipping carrier generates this number to ensure that they can provide a unique identifier to each shipment that they handle. 

The first three digits in the AWB number are the carrier ID number; the following seven digits are the serial number allotted to that AWB and the final digit is the check digit. 

An example of an AWB number can be seen in the picture below. 

Format of an Airway Bill

An AWB provides a lot of information throughout the shipment process. Let’s learn about them: 

Seller Details

You can find the name and the address of the seller. This information is primarily useful in case of an NDR or unexpected return. 

Buyer Details 

The buyer’s details on the airway bill include his name, address, and contact information. His address is the final destination of the shipment. 

Shipment Details 

It is essential to provide the shipment details. This is why an AWB includes the item name, quantity, weight, dimensions, and shipment price. 

Barcode 

Every AWB has a barcode which is required to track the order. The courier partners usually use this barcode. It is scanned at various stages of the shipment process to know its location. 

Payment Details 

The delivery executive needs to know if the shipment is prepaid or if they are supposed to collect money at the final destination. For their ease, the payment mode and amount to be collected (in the case of COD) are available on the bill. 

Functions of an AWB

Now that you understand everything available on this bill, let us take a look at its functions in detail: 

Enable Smooth Tracking

Every AWB has an AWB number mentioned. The carrier or receiver uses this number to track the shipment’s location whenever and wherever needed. Along with the number, the bill also has a barcode that helps with the end-to-end tracking process. The barcode is present to enable digital upload of the tracking details. 

Customs Declaration

Customs require many documents when importing or exporting goods, such as a packing list, GATT declaration, import license, and more. AWB is one of those detailed pieces of evidence that help declare the shipment’s value when it is presented at the customs declaration. 

Legally Binding Agreement

An airway bill also acts as a legal agreement amongst all the parties involved in the shipment process. Most of the time, it is the shipper and courier shipping partner. It includes conditions around the responsibility of the parcel, liability limits, laws applicable to the package (if any), and processes to follow in case the shipment is lost/damaged. 

Acts as a Shipment Documentation 

AWB has almost all possible shipment details required throughout the process. On this bill, you can find the quantity, weight, size, price, and even description of the item packed inside the package. 

Works as a Freight Invoice

As mentioned, AWB also includes the pricing of the shipment and the mode of payment. Therefore, this can also be used as a freight bill when accompanied by other required documents, such as commercial invoices, packing lists, and more. 

How to Generate an AWB Number

The following are the steps involved in order to generate an AWB number:

1. The first step in generating the AWB at RapidShyp is to sign in at www.app.rapidshyp.com.
2. Once you sign in, head to Orders and create a new order by providing all the shipment details.
3. Next, move to the Shipment section and select “Ship Now.”
4. Your AWB number will now appear on your screen.
5. Go ahead and create a manifest and ship your order.

You can use the AWB number to track your shipment on a branded tracking page and find out where your package is. 

Difference Between an Airway Bill and a Bill of Lading

People often confuse an AWB with a BOL, as both documents are legally binding and contain all relevant shipping details. However, both of these documents are very different. Let’s understand how.

Mode of Transport

Airway bill is usually generated for any shipments made through air. However, BOL (Bill of Lading) is sued when shipping is done via sea, train, or truck. 

Negotiability 

AWB is a non-negotiable document that specifies the consignee’s details. It is not a title document; therefore, it doesn’t allow the transfer of the ownership of the shipment.

BOL, on the other hand, is a title document. This document allows you to easily transfer the ownership of the consignment to any third party and thereafter have the shipment delivered to them. 

Shipment Collection

At the time of receiving or delivering a shipment, it is not required to submit the original copy of the airway bill. The consignee can present a form of identification to prove his identity during the process. 

Contrary to this, the receiver has to provide the original copy of the BOL (Bill of Lading) to prove his identity and get ownership of the shipment. 

Number of Copies Required

No fixed number of copies of the airway bill is required during the shipment process. The number varies from carrier to carrier. 

BOL shipments have a fixed number. It must be accompanied by 3 original and 3 copies of this document, which are needed at certain stages of the process. 

Incoterms

On the basis of incoterms, an airway bill is used with Ex Works (EXW), Free Carrier (FCA),  Carriage and Insurance Paid to (CIP), Carriage Paid to (CPT), Delivery At Place (DAP),  Delivery Duty Unpaid (DDP), and Delivered at Place Unloaded (DPU). It can’t be used with Free On Board (FOB), Cost Insurance Freight (CIF), Free Alongside Ship (FAS), and Cost and Freight (CFR).

BOL, however, is used with all the Incoterms. There are no exceptions to it. 

Time of Issue

AWB is issued after scanning, inspecting, and departing the shipment from the departure location. 

Bill of Lading gets generated when the good is scanned, inspected, and departed from the loading point.

Governing Bodies

The government’s international regulation bodies of AWB include the Warsaw Convention, Hague Amendment, and Montreal Convention. 

However, the international government regulation bodies for BOL are the Hague Rules, The Hague-Visby Rules, and the US Carriage of Goods by Sea Act 1936 (COGSA).

Bringing It Together!

With every air freight that you ship, you attach an airway bill. This document helps us know the shipment details, and it plays a huge role in order tracking, customs declaration, and more.

With so many shipment and logistics partners available in the market, finding the one that best suits you can sometimes be overwhelming. 

RapidShyp has partnered with many courier companies to provide several freight delivery options. Our shipping charges start at just ₹25 per 500gm. Sign up with us and effortlessly ship a package of as little as 500 gm up to 20 kgs.