The goods in the air consignment are consigned directly to the party (the consignee) named in the letter of credit (L/C). Unless the goods are consigned to a third party like the issuing bank, the importer can obtain the goods from the carrier at destination without paying the issuing bank or the consignor. Therefore, unless a cash payment has been received by the exporter or the buyer's integrity is unquestionable, consigning goods directly to the importer is risky.

For air consignment to certain destinations, it is possible to arrange payment on a COD (cash on delivery) basis and consign the goods directly to the importer. The goods are released to the importer only after the importer makes the payment and complies with the instructions in the AWB.

In air freight, the exporter (the consignor) often engages a freight forwarder or consolidator to handle the forwarding of goods. The consignor provides a Shipper's Letter of Instructions which authorizes the forwarding agent to sign certain documents (e.g. the AWB) on behalf of the consignor.

The AWB must indicate that the goods have been accepted for carriage, and it must be signed or authenticated by the carrier or the named agent for or on behalf of the carrier. The signature or authentication of the carrier must be identified as carrier, and in the case of agent signing or authenticating, the name and the capacity of the carrier on whose behalf the agent signs or authenticates must be indicated.

The AWB is issued usually in set of twelve copies. Copies 1, 2 and 3 of AWB are originals and have the same validity. The originals are usually marked as:

or similar expressions at the bottom of the AWB.

Copy 1 or Original 1 is to be signed by the consignor or its agent.

Copy 2 or Original 2, which is to accompany the goods through to the airport of destination, is signed by the carrier and by the consignor or its agent.

Copy 3 or Original 3 is signed by the carrier, and is handed to the consignor or its agent after the goods have been accepted for carriage. If the letter of credit (L/C) stipulates a full set of originals, the presentation of Copy 3 or Original 3 to the bank will satisfy the requirement.

The AWB also operates like a through bill of lading. It can be used in transhipment, that is, unloading and reloading from one aircraft to another aircraft during the course of carriage from the airport of departure to the airport of destination stipulated in the L/C. A set of AWB's issued by the first carrier usually includes a For Second Carrier copy and a For Third Carrier copy, which are used if required in transhipment.

The first three digits in the sample Air Waybill represented, for example, by digits '000', identifies the carrier, and constitute part of the air waybill (AWB) number (e.g. 000-12345678). The carrier's agents, such as the freight forwarder, may issue their own house air waybill (HAWB), the format of which may differ from the sample air waybill.

The Date of Shipment in Air Freight

 

The issuance date of the air waybill (AWB) is considered to be the date of shipment. If the letter of credit (L/C) calls for an actual date of dispatch, the AWB must indicate a specific notation of the date of dispatch, and the date indicated is considered to be the date of shipment. The expression "Flight/Date [For Carrier Use Only] Flight/Date" on the sample Air Waybill, for example, is not considered as a specific notation of the date of dispatch.

 

Transhipment Indicated in Air Waybills

 

If the air waybill indicates that transhipment will or may take place, then the transhipment is allowed even if the letter of credit (L/C) prohibits transhipment, provided that the entire carriage is covered by one and the same air waybill.

 

Split Shipment

 

The split shipment means that portions of a shipment covered by one air waybill enter the country at different times.

• Master and House Air Waybills
• Clean versus Foul Air Waybills
• Shipper's Load and Count
• Road Waybills and Rail Waybills
• Ocean Bill of Lading
• Seaports of the World
• Stale Bill of Lading and the Guarantee for Delivery of Goods