What is Air Waybill ?

2268 reads · Last updated: December 5, 2024

An air waybill (AWB) is a document that accompanies goods shipped by an international air courier to provide detailed information about the shipment and allow it to be tracked. The bill has multiple copies so that each party 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. However, an AWB serves a similar function to ocean bills of lading, but an AWB is issued in non-negotiable form, meaning there's less protection with an AWB versus bills of lading.

Definition

An Air Waybill (AWB) is a document accompanying international air freight shipments, providing detailed information about the cargo and allowing it to be tracked. The waybill has multiple copies so that each party involved in the shipment can have a record. AWB is also known as an air consignment note and is a type of waybill.

Origin

The use of air waybills dates back to the early development of air cargo transport. As air transportation became popular in the mid-20th century, AWBs became standardized freight documents to ensure the safe and efficient transport of goods worldwide.

Categories and Features

Air waybills are mainly divided into two types: direct waybills and transit waybills. Direct waybills are used for shipments directly from the origin to the destination, while transit waybills involve multiple transit points. A key feature of AWBs is their non-negotiable nature, meaning they cannot be used as a document of title like a sea waybill. Additionally, AWBs typically include detailed cargo information, shipper and consignee details, and terms of transport.

Case Studies

Case 1: An electronics company uses an air waybill to ship a batch of high-value electronics from China to the USA. Due to the non-negotiable nature of the AWB, the consignee must be the company specified on the waybill, ensuring secure delivery. Case 2: A fashion company uses an AWB to transport seasonal clothing from Italy to Japan. The multiple copies of the AWB allow the shipper, carrier, and consignee to track the shipment status in real-time, ensuring timely delivery.

Common Issues

Investors using air waybills may encounter issues such as ownership disputes due to the non-negotiable nature of AWBs. Additionally, AWBs offer less legal protection, making claims more complex in cases of cargo damage or loss.

Suggested for You

Public Audit

A public audit, also known as an external audit or independent audit, is an audit conducted by a third-party auditing firm that is independent of the entity being audited. The purpose of a public audit is to provide an independent and objective examination and evaluation of an organization's financial statements and related information to ensure their accuracy, fairness, and compliance with applicable standards and regulations. Public audits help enhance the transparency and credibility of an organization and prevent financial fraud and errors.

Documentary Collection

Documentary collection is a payment method in international trade where the exporter submits shipping documents through a bank to the importer, requiring the importer to pay the invoice or accept a bill of exchange before receiving the documents needed to take possession of the goods.

High-Water Mark

The high-water mark is a term used in finance, typically in the context of hedge funds or investment funds, to describe a performance fee structure. Specifically, the high-water mark is the highest peak in value that a fund has reached. Fund managers can only charge performance fees if the fund's net asset value exceeds this previous peak. This mechanism is designed to protect investors by ensuring that fund managers do not charge performance fees on the same gains more than once.

High Street Bank

High Street Banks, also known as Retail Banks, are banks that primarily serve individual consumers and small businesses by offering a wide range of financial services. These banks are typically located on the main streets of cities and towns, hence the name "High Street Banks." Services provided by high street banks include savings accounts, checking accounts, loans, mortgages, credit cards, insurance, and investment products.The key characteristic of high street banks is their focus on the general public, emphasizing customer service and convenience. They usually have extensive branch networks and numerous ATMs to facilitate everyday banking transactions for their customers.

High-Low Index

The High-Low Index is a technical analysis indicator used to measure market sentiment and trends. Specifically, the High-Low Index is the ratio of the number of stocks making new 52-week highs to the total number of stocks making new 52-week highs and lows. When the High-Low Index is close to 1, it indicates a strong market with more stocks making new highs. Conversely, when the High-Low Index is close to 0, it indicates a weak market with more stocks making new lows.

Leveraged Buyout

A Leveraged Buyout (LBO) is a corporate acquisition strategy that involves using a significant amount of borrowed money to fund the purchase of a target company. The acquiring party typically uses the target company's assets as collateral and relies on the future cash flows of the target company to repay the debt. The goal of an LBO is to control the target company with a relatively small amount of equity, thereby achieving high returns.