Air waybill

What it means

An air waybill is the transport document for air freight. It confirms that the carrier has received the consignment and sets out the terms of carriage, shipper, consignee, description of goods, weight, airports of departure and destination, and charges.

Unlike a bill of lading, it is not a document of title and does not represent ownership of the goods. The carrier releases the consignment to the consignee named in the document without an original being presented. An air waybill therefore cannot be used to sell goods in transit.

The document follows a standard IATA format and each carries a unique number for tracking the shipment. There is a master air waybill, issued by the airline to the forwarder, and a house air waybill, issued by the forwarder to individual shippers in consolidated shipments.

How it works in practice

For exports outside the EU, the air waybill together with the customs document serves as proof that the goods left the Union. This proof is needed to apply the VAT exemption for exports, so it should be filed with the invoice and the customs declaration.

Most companies organise air freight through a forwarder under a freight forwarding contract. The forwarder books space on the aircraft, issues documents and handles customs formalities. In consolidated shipments the shipper receives a house air waybill that refers to the airline's master document.

When paying by letter of credit, the air waybill is often consigned to the bank so that the buyer cannot collect the goods without the bank's consent. As it is not a document of title, this protection is weaker than with a bill of lading, and the terms must be set carefully.

What to watch out for

The details in the document must match the invoice, the customs declaration and the physical goods. Discrepancies in weight, number of pieces or description lead to delays at the airport, extra charges and, under a letter of credit, rejection of documents by the bank.

An air carrier's liability for loss or damage is limited by international conventions according to the weight of the shipment, so for valuable goods compensation may not cover the actual loss. For high-value cargo it is advisable to declare a value or take out separate cargo insurance.