DIFFERENCE BETWEEN AIR WAYBILL AND BILL OF LADING

DIFFERENCE BETWEEN AIR WAYBILL AND BILL OF LADING

What Is an Air Waybill (AWB)?

An air waybill (AWB) is a document that accompanies goods when shipped by an international air courier and it provides detailed information about the shipment, and also allows it to be tracked.

The AWB has multiple copies so that parties involved in the shipment can document it.

An air waybill (AWB), also known as an air consignment note, is a type of bill of lading.

What Is a Bill of Lading (B/L or BoL)

A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried.
A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination.
This document must accompany the shipped products, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper, and receiver.

DIFFERENCE BETWEEN AIR WAYBILL AND BILL OF LADING

AIR WAYBILL (AWB)	BILL OF LADING (B/L)
Non negotiable	Negotiable (if issued to order of….)
Air Waybill is issued after a completed shipment is received	Bill of lading is issues after consignment is shipped on board a vessel
This document is issued in at least 9 copies	This document is issued in full set (3 original/3copies)
This document is used for Air shipments	This document is used for Sea shipments
Not used with FAS, FOB, CFR and CIF incoterms	Can be used with all incoterms defined in incoterms rules 2010
AWB is subject to Warsaw convention, Hague amendment< Montreal convention.	B/L Is subject to Hague rules, The Hague-Visby rules and US COGSA (US Carriage of Goods by Sea Act 1936)

  

 

1.  Document
Air waybill, when issued is always a non-negotiable transport document.
Buyers could collect the consignment from the carrier at the airport of destination by simply proving their identities against the company information stated on the consignee part of the air waybill.

Bill of lading on the other hand, when issued in negotiable form, represents title to the goods.
For this reason at least one original copy of the bill of lading must be surrendered to the carrier's nominated agent at the port of discharge in order to collect the goods.

2.  Time of issuance
Air waybill is issued by the air cargo carrier, after the complete consignment has been received by the carrier and the aircraft departs from the airport of departure.

Bill of lading should be issued by the carrier, after the goods shipped on board a vessel and the vessel departs from the port of loading.

3.  How many originals and copy issued
It is a standard practice in international container transportation to issue bills of lading in full set, 3 originals and 3 copies.

Air waybills, on the other hand, issued by the air cargo carrier in 9 originals.
On below figure, you can find how many air waybills issued per each air shipment and how all these copies will be distributed among the various parties of that particular transaction. 

How many Air waybills issued per transaction
Number of Originals	Print color	Used by	Aim of Issuance
1st Original	Green	Issuing carrier	For documentary evidence of the contract of carriage and for accounting purpose.
2nd Original	Pink	Consignee	To be tendered to the consignee on delivery at the final destination
3rd Original	Blue	Shipper	For proof of goods received and documentary evidence
4th Original	Yellow	Transferring carrier	For receipt of delivery as evidence of the carrier’s completion of contract of carriage
5th Original	White	Airport Destination	For use at the Airport of destination
6th Original	White	3rd Carrier	For settlement among the participating carriers
7th Original	White	2nd Carrier	For settlement among the participating carriers
8th Original	White	1st Carrier	For settlement among the participating carriers
9th Original	White	Agent	For agent or carrier executing the AWB

4.  Mode of Transport.

Bill of lading should be used with port-to-port sea shipments, whereas air waybill should be used with air shipments.

5.  Applicable Incoterms:

Bill of lading is a transport document, which is issued in sea shipments. According to Incoterms 2010 rules all incoterms can be used with sea shipments. On the contrary, air waybill is a transport document, which is issued in air shipments and FAS, FOB, CFR and CIF incoterms cannot be used with air shipments according to Incoterms 2010 rules.

6.  Governing International Regulations:

Bill of lading and air waybill are issued subject to different governing international rules. 

·         Governing International Regulations of Air Waybill: Warsaw Convention, Hague amendment, Montreal Convention. 

·         Governing International Regulations of Bill of Lading: Hague Rules, The Hague-Visby Rules and US COGSA (US Carriage of Goods by Sea Act 1936).