Bill Of Lading And Airway Bill Difference

1. What is Airway Bill (AWB)?

Before bill of lading and airway bill difference, let's learn a little about the concept of air waybills! The Airway Bill (AWB) is a document for air transport goods. A bill of lading will be issued by airlines, airline agents, or forwarders based on the customer's goods information.

1.1. Functions of air waybill

The bill of lading includes the following two main roles:

• Evidence of the conclusion of the transportation contract

A bill of lading is an important freight document. The terms of the air waybill are clearly stated, so they are considered a transportation contract signed by both parties. However, a bill of lading is not a contract. A bill of lading is considered a contract when both parties do not sign a transportation contract. Therefore, all responsibilities, rights, and obligations of both parties will be clearly stated in the airway bill. This is also considered evidence when litigation or disputes occur.

• Receipt confirming delivery of goods for shipping

Receipt confirming delivery of goods for shipping

After signing the goods transportation contract, the sender will prepare the goods and prepare some necessary documents so that the order can be shipped. The carrier receiving all types of goods will send this bill of lading to the shipper. It is like a receipt confirming the delivery of goods for transportation.

1.2. Classify

Currently, air waybills are divided into two types: bills of lading without issuer and bills of lading without consolidation.

• Bill of lading without issuer:
  • Airline Airway Bill: An airline bill of lading is a bill of lading with a logo and carrier identification code. This bill of lading will be issued by the airlines.
  • Neutral Airway Bill: This bill of lading is usually issued by agents of the carrier or forwarder.
• Bill of lading without consolidation: Includes 2 types:
  • Master Airway Bill (MAWB): A Master Airway Bill is issued by the air carrier to the bill of lading holder to receive the goods at the destination airport. In addition, the master bill of lading is also considered proof of delivery between the carrier and the consignor.
  • House Airway Bill (HAWB): House Airway Bill, also known as the consolidator's bill of lading. House bills of lading are issued by consolidators to retail store owners so that they have a bill of lading to receive goods. Simply put, the freight forwarder does not issue a bill of lading to the customer.

2. What is Bill of Lading (B/L)?

To have the most objective bill of lading and airway bill difference, we need to understand what a sea bill of lading is. A bill of lading is a document of transport of goods; it is issued by the carrier or his representative to the shipper of goods, confirming the successful receipt of goods.

2.1. Functions of ocean bill of lading

After understanding the definition of a bill of lading, we invite you to the next content to learn in more detail about the 3 main functions of this type of bill of lading:

• The bill of lading is evidence to prove that the consignee has transported the sender's shipment according to the information on the bill: sender, recipient, quantity of goods, type, condition,...
• The bill of lading is valid for payment and disposition at the bank. The bill of lading proves ownership of the goods, so the original bill of lading can be used for sales.
• The bill of lading is considered a signed goods transportation contract. In chartering a boat, the carrier and the cargo owner must sign a contract in advance. However, during the process of chartering a market ship (LCL cargo or container ship), the shipping company does not sign a transportation contract in advance, but both parties only have a booking note. After the goods have been loaded onto the ship and a bill issued, each party's responsibilities begin to be fulfilled.

2.2. Classify

To be able to classify ocean bills of lading, people often base their decisions on the following three factors:

• Based on the method of transferring the bill of lading
  • Anonymous bill of lading (presented bill of lading—to bearer B/L)
  • Straight B/L: Straight B/L
  • Order B/L - Order B/L

• Based on the shipping method
  • Direct B/L, also known as direct bill of lading
  • Bill of lading: Through B/L, also known as the bill of lading through
  • Combined B/L

• Based on the nature of the loading on board
  • Receipt on board B/L
  • Shipped on board B/L

• How to note the bill of lading
  • Unclean B/L, also known as Imperfect Bill of Lading, is Unclean B/L.
  • A clean bill of lading is also known as a perfect bill of lading, or clean B/L.
  • Bill of Lading to be used with charter parties: Bill of Lading to be used with charter parties: A bill of lading under charter party is a transport document issued by the shipping company or carrier for the shipment when it has been loaded onto the means of transport. transfer by train.
  • Seaway bill: This is a document that replaces the traditional bill of lading. When the ship arrives at the port, the consignee brings documents proving that he or she is the consignee to receive the goods. This document is understood as a named bill of lading, but the difference is that the recipient must present the bill of lading in the named bill of lading.

2.3. Effects of ocean bill of lading

The bill of lading is one of the most important and indispensable documents in the process of transporting goods by sea. Therefore, they have many effects in foreign trade transactions, specifically as follows:

• The bill of lading is the basis for customs declarations and procedures for the import and export of goods (if any).
• The bill of lading is the basis for paying income tax. The bill of lading forces the sender to clearly identify the quantity and type for the buyer.
• The bill of lading is the legal basis for adjusting the relationship between the receiver, sender, carrier, and shipper.
• A bill of lading is an important document in import and export.
• A bill of lading can be used as a document for sale and transfer.

2.4. Release and use process

So that you can better understand how this type of bill of lading works, we will introduce to you the process of issuing and using a bill of lading through two steps:

• When issuing a bill of lading, the carrier or his representative signs the release and clearly fills in his legal status. Normally, the bill of lading will be signed by the ship owner, captain, and shipping agent.

• The bill of lading is issued in original and copies. The originals were released in set form. Each set may have one or more identical originals.

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3. Bill of lading and airway bill difference

A bill of lading is an indispensable document in international freight transportation. Therefore, to avoid confusion between types of bills of lading, below is a bill of lading and airway bill difference that you can refer to.

3.1. The same point

Before getting to the differences between these two types of bills of lading, let's join Dolphin Sea Air to learn about the similarities between these two types of bills of lading:

• Form: Issued by the carrier with content such as the full name of the sender and recipient, detailed information about the means of transportation, and shipment information.
• Function: Both are evidence and receipts, like a transportation contract.

3.2. The difference between these two types of bills of lading

Sea waybills and air waybills have the following differences:

4. Should I use air transport or sea transport?

Choosing to use air transport or sea transport depends on each person's needs. Normally, if you want your order to be shipped quickly, air shipping will be the best choice. This method will be really useful for items with a short shelf life. You don't have to wait for a large shipment to be able to transport it, because this method can transport all different sizes of goods.

Compare the sea waybill and the air waybill.

Besides, clearly determining the size and weight of your shipment will help you get appropriate prices. However, due to shorter shipping times, air shipping is often more expensive than other types of shipping. Both of these two forms of transportation have differences, but you should choose the appropriate form based on your needs.

Just a few small bills of lading and airway bill difference to distinguish the above two forms. Hopefully, the information shared by Dolphin Sea Air above will help you find the right type of transportation.

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