Every air cargo consignment travels under an air waybill. It is a short document, but the details on it shape who the cargo is delivered to, how the charges are calculated, what the airline is liable for and whether a bank accepts it under a letter of credit. This guide explains what the air waybill does in law, how master and house waybills fit together, what the electronic air waybill (e-AWB) changes and the details shippers commonly check before cargo is handed over.
What an air waybill is, and what it is not
The air waybill (AWB) is the transport document for air cargo. For most international air carriage it is governed by the Convention for the Unification of Certain Rules for International Carriage by Air, agreed at Montreal in 1999 and administered by the International Civil Aviation Organization (ICAO). The Convention generally applies when the places of departure and destination are both in states that are parties to it. Some routes may still fall under the older Warsaw Convention system, so the applicable regime depends on the countries involved.
Under the Montreal Convention:
- the consignor makes out the air waybill in three original parts: one for the carrier, one for the consignee and one for the consignor (Article 7);
- the air waybill is prima facie evidence of the contract of carriage, of the acceptance of the cargo and of the conditions of carriage it mentions (Article 11);
- the consignor is responsible for the correctness of the particulars it gives about the cargo (Article 10);
- an electronic record that preserves the details of the carriage may be used instead of a paper air waybill (Article 4).
The air waybill is not a document of title. Unlike an ocean bill of lading issued "to order", it is not negotiable and does not need to be surrendered to obtain the cargo. Delivery is generally made to the consignee named on it. This matters when payment and delivery depend on each other, as explained below.
Master and house air waybills
Most general cargo moves through freight forwarders, who consolidate several shippers' consignments into one shipment with the airline.
| Document | Issued by | Shows as shipper and consignee | Purpose |
|---|---|---|---|
| Master air waybill (MAWB) | The airline or its agent | Usually the forwarder at origin and its agent at destination | The contract between the forwarder and the airline for the whole consolidation |
| House air waybill (HAWB) | The freight forwarder | The actual shipper and the actual buyer or receiver | The forwarder's document for each individual consignment in the consolidation |
When it is consolidated, the shipper usually receives a house air waybill, and the destination agent releases the cargo against the house details after the airline releases the consolidation.
Reading the air waybill number
An air waybill number has 11 digits. The first three are the airline prefix assigned through the International Air Transport Association (IATA), identifying the carrier. The next seven are the serial number, and the last digit is a check digit, commonly calculated as the remainder when the seven-digit serial number is divided by 7. A mistyped number can therefore often be spotted early. The same number generally links the shipment to the airline's cargo manifest at destination; see our guide to UAE cargo manifests and customs declarations.
The electronic air waybill (e-AWB)
The e-AWB replaces the paper air waybill with an electronic message exchanged between the forwarder and the airline. The legal basis for this in the IATA system is the Multilateral e-AWB Agreement, IATA Resolution 672. Airlines and freight forwarders sign it once with IATA and can then exchange e-AWBs with other parties to the agreement, instead of signing separate bilateral agreements. According to IATA, the agreement deals with how electronic contracts are concluded and does not change the conditions of carriage themselves.
For shippers, the main practical points are:
- the data a forwarder sends electronically comes from the shipper's instructions, often given in a Shipper's Letter of Instruction (SLI), so errors in the instructions carry straight through;
- some shipments may still need paper, for example where a destination authority, a bank or a particular commodity requires it, so it is worth confirming early which documents will travel with the cargo;
- the e-AWB does not replace the commercial invoice, packing list, certificates or, for dangerous goods, the shipper's declaration.
Air waybills and letters of credit
Banks examine air transport documents under the International Chamber of Commerce (ICC) Uniform Customs and Practice for Documentary Credits (UCP 600), Article 23, together with the ICC's International Standard Banking Practice (ISBP). Among other things, the document must appear to indicate that the goods have been accepted for carriage, and it shows the airports of departure and destination stated in the credit. Because the air waybill is not a document of title, a seller relying on a letter of credit often asks for the cargo to be consigned to the issuing bank or another party agreed in the credit, rather than directly to the buyer. The exact wording should be agreed with the bank before shipment. Our guide to letters of credit and shipping documents covers common discrepancies.
Liability and claims
Under the Montreal Convention, the carrier is liable for destruction, loss or damage to cargo during carriage by air, subject to the defences and limits in the Convention. Liability for cargo is limited to an amount in Special Drawing Rights (SDR) per kilogram, which ICAO reviews periodically, so the current figure should be checked with ICAO or IATA. Because the limit is by weight, it may be far below the value of high-value goods; see marine cargo insurance and general average for why cargo insurance is commonly arranged separately.
Time limits for complaints are short. Article 31 provides that a complaint about damage must generally be made within 14 days of receipt of the cargo, and a complaint about delay within 21 days of the cargo being placed at the consignee's disposal. Consignees should check the cargo on collection and record any damage at once.
Details to check before cargo is handed over
- Shipper and consignee: full legal names, addresses and contacts, matching the commercial invoice and, where relevant, the letter of credit.
- Notify party and destination agent, if the consignee is a bank or a third party.
- Airports of departure and destination as three-letter codes, and any routing the buyer or bank requires.
- Pieces, actual gross weight and dimensions, which determine the chargeable weight; our chargeable weight guide and the volumetric weight calculator explain the calculation.
- Nature and quantity of goods, described consistently with the invoice and any permits.
- Dangerous goods: whether anything in the consignment is regulated under the IATA Dangerous Goods Regulations, including batteries and items in equipment.
- Declared value for carriage, if a higher carrier liability is to be declared and the related charge accepted.
- Payment terms for freight (prepaid or collect) as agreed in the sales contract and the Incoterms® rule used; see our Incoterms 2020 guide.
- Special handling: temperature, perishables, valuables or live animals, agreed with the forwarder and airline in advance.
Frequently asked questions
Is an air waybill a document of title?
No. Under the Montreal Convention the air waybill is evidence of the contract of carriage and of the acceptance of the cargo, but it is not negotiable and is not needed to collect the goods. Delivery is generally made to the consignee named on it.
What is the difference between a master and a house air waybill?
The master air waybill is the airline's document for a whole shipment, usually issued to a forwarder for a consolidation. The house air waybill is issued by the forwarder to each individual shipper whose goods travel inside that consolidation.
Does an e-AWB mean no paper documents at all?
Not necessarily. The e-AWB replaces the paper air waybill between parties to IATA's Multilateral e-AWB Agreement, but other documents may still be required by authorities, banks or for certain goods, so requirements should be confirmed for each shipment.
References
- International Civil Aviation Organization, Convention for the Unification of Certain Rules for International Carriage by Air (Montreal, 1999), depositary and treaty records.
- IATA, The Montreal Convention 1999.
- IATA, Electronic Air Waybill (e-AWB).
- IATA, Multilateral e-AWB Agreement (Resolution 672).
- IATA, Dangerous Goods Regulations (DGR).
- International Chamber of Commerce, Uniform Customs and Practice for Documentary Credits (UCP 600) and ISBP.
Prepared by the Apex Ocean Lines industry experts and editorial team, checked against the sources cited. Short forms link to our shipping glossary.