#LogisticsAdvice

Shipping documents: Guide to air waybill for new shippers

7 minutes
Share
facebook sharing button
twitter sharing button
linkedin sharing button
Smart Share Buttons Icon Share
Shipping documents: Guide to air waybill for new shippers

Navigating the complexities of international shipping can be a daunting task for new shippers, especially when it comes to understanding and managing crucial shipping documents like the air waybill (AWB). This document is a cornerstone of air freight shipping, serving as a contract of carriage and a key to smooth customs clearance.

If you’re new to global trade, you may have heard the term air waybill or AWB, but have no clue what it is nor what it stands for in the shipping industry. To help you navigate the complex landscape of international logistics, this guide delves into the significance of the AWB, exploring its various forms, essential components, and the meticulous attention required for accurate completion. With the right understanding and handling of the AWB, shippers can mitigate common shipping challenges and optimise their logistical operations globally.

1. Understanding the purpose of the air waybill

The air waybill is a cornerstone document in international trade, particularly within the air freight sector. It serves multiple essential functions that are critical for the smooth execution of international deliveries. As the primary document used by airlines for the transportation of goods, the AWB is akin to a passport for your shipment of goods, acting as a receipt of goods issued by the carrier. It confirms that the carrier has received the merchandise as described and is obligated to deliver it according to the terms specified. 

Beyond its role as a receipt, the AWB is integral to the customs clearance process. Customs authorities worldwide rely on the information provided in the AWB to assess duties and taxes, enforce regulations, and ensure compliance with international trade laws. The accuracy and completeness of the AWB can significantly influence the speed and ease of the customs process, directly impacting the efficiency of shipping operations. Mismanagement or inaccuracies in the AWB can lead to substantial delays, increased costs, and legal complications, highlighting its indispensability for maintaining the smooth flow of goods across borders.

2. Types of air waybills 

There are several types of AWB, each serving different purposes within the freight sector.:

  • Master Air Waybill (MAWB): The MAWB is issued by the main carrier of goods on flights and is used for shipments that typically involve multiple handling agents or airlines. It acts as a contract of carriage between the shipper and the main airline that oversees the consolidation of multiple shipments. The MAWB covers the entire journey from the point of departure to the final destination, facilitating smoother coordination and liability agreements among all parties involved.
  • House Air Waybill (HAWB): Used by freight forwarders, the HAWB is issued for each individual shipment within a consolidated load under a single MAWB. It serves as a contract between the shipper and the freight forwarder, detailing the specific terms for the transportation of the goods within the larger consolidated shipment. This separation allows for more detailed tracking and management of individual consignments, providing clear documentation for shippers and recipients. Such granularity facilitates the search and monitoring of specific items within a bulk shipment, enhancing logistical efficiency and transparency.
  • Electronic Air Waybill (e-AWB): The e-AWB is becoming increasingly prevalent as it significantly reduces the need for paper-based documentation, streamlining the entire shipping process. This digital version of the traditional air waybill improves the efficiency of data handling and processing, enabling faster transfer of shipping information, reducing errors, and enhancing the overall security of the data. 

3. Air waybill in the transportation process

In the air freight shipping process, the air waybill is instrumental in navigating the relationships and responsibilities among the four main parties involved: the shipper, the freight forwarder, the carrier, and the consignee. Here’s a detailed look at how the AWB functions within the air freight flow:

  1. Shipment initiation and receipt: The process begins with the shipper, who prepares the goods for shipment and entrusts them to a freight forwarder. The freight forwarder, acting as an intermediary, issues the HAWB to the shipper. Each HAWB is assigned a unique number, which allows the shipper and forwarder to track the shipment's progress throughout its journey, enhancing transparency and security.
  2. Booking and consolidation: The freight forwarder then books space with an air carrier and hands over the goods, often consolidating them with other shipments to optimise cargo space and costs. After settling all export customs formalities, the air carrier issues the MAWB. This document, also bearing a shipment tracking number, is signed by both the carrier and the freight forwarder, formalising it as an enforceable contract that outlines the carrier's responsibilities for the safe delivery of the goods according to specified terms.
  3. Customs and delivery: Upon the shipment's arrival at the destination, the consignee (or their agent/forwarder) presents the AWB to claim the goods. The AWB, which might be received from the sender directly or through other means such as mail or bank transfer, is critical for import customs clearance. This document signifies the completion of the shipping contract and the acceptance of the cargo, containing all necessary details to verify and process the shipment accordingly.

4. How to complete an air waybill step-by-step

Completing an air waybill correctly is crucial for ensuring that your shipment is processed efficiently and without delay. Here's a step-by-step guide to filling out a DHL Express AWB accurately:

Step 1: Fill in Shipper's Details

  • Include the name, address, and contact information of the person or company sending the shipment.

Step 2: Fill in Receiver's Details

  • Include the name, address, and contact information of the intended recipient.

Step 3: Fill in Shipping Detail

  • Verify the delivery date, airway bill number, shipment creation date, and service used.

Step 4: Fill in Package Detail

Step 5: Fill in Payer Account Number

  • Enter the DHL Express account number responsible for paying the transportation fees.

Step 6: Fill in Origin and Destination Codes

  • Verify the three-letter airport codes for the shipment's origin and destination.

Step 7: Review and Sign

  • Review the completed AWB to ensure all information is accurate and comprehensive. Sign the AWB to validate the information and authorise the shipment.

Step 8: Attach Necessary Documentation

  • Attach any additional documentation such as commercial invoices, certificates of origin, or import/export permits.

Step 9: Submit the AWB to the Carrier

  • Hand over the completed AWB along with your shipment to the carrier. The carrier will review the AWB for completeness and accuracy before accepting the shipment for transport.

Step 10: Keep a Copy

  • Always keep a copy of the completed AWB for your records. This will be useful for tracking the shipment, handling potential claims, and maintaining your business records.

5. Tips for accurate and efficient completion

Navigating the complexities of international shipping requires meticulous attention to detail, especially when completing an air waybill. Mistakes in this process can lead to delays, additional costs, or complications with customs. It's crucial to ensure all shipper and consignee information is complete and accurate, as inaccuracies here can lead to undeliverable shipments or significant delays.

The description of the goods section in your AWB should be clear and precise, including mentioning proper Harmonised System (HS) codes to avoid customs hold-ups. Special handling requirements, such as refrigeration or fragile handling, must be explicitly stated to prevent damage during transit. Understanding the terms of shipment (Incoterms) and clearly specifying who is responsible for duties, taxes, and other fees can prevent disputes and unexpected charges.

Reviewing the AWB thoroughly before submission can catch errors that might otherwise cause problems during transit, ensuring that all necessary documents, like commercial invoices and certificates of origin, are correctly attached and correspond to the AWB details. This diligence not only facilitates smooth customs processing but also helps maintain the integrity of the delivery timeline and reduces the risk of unforeseen expenses.

Shipping with DHL Express: enhancing your experience with expert customs support

Navigating the intricacies of cross-border logistics can be daunting for any business engaged in international trade. Mistakes in your air waybill or mismanagement of shipping processes can lead to costly delays and complications. However, leveraging the expertise of a reliable logistics partner like DHL Express can transform these challenges into a streamlined, efficient experience.

DHL Express provides robust support for international delivery, offering a number of tailored logistics solutions that extend beyond mere transportation. Their in-house customs team is well-versed in global trade regulations, providing guidance that helps avoid delays and ensures compliance with international standards. By optimising every aspect of the shipping process — from advanced tracking systems to strategic supply chain management — DHL Express ensures your shipments are handled with precision and care. This support is invaluable for businesses aiming to expand their reach and excel in the competitive global market.

Start exporting with DHL Express today and experience streamlined, efficient international shipping tailored to your business needs.