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The global cargo airline industry sits at USD 110.8 BN, generating a global air freight traffic of 65.6m mt and a revenue of USD 175 BN. Driven by a fuelling growth of cross-border eCommerce and a dip in airline fuel prices, air freight continues to be a retailer favorite over ocean freight because it is quicker and less expensive.
Air freight delivers goods in just 5-7 days as opposed to the more than eight days it takes for ocean freight to do so.
This huge adoption of air freight has led to an increase in quality and transparency-related expectations, and AWB tracking is one of them.With millions of shipments traveling as air cargo, tracking and real-time key milestone updates are becoming the industry norm down to a granular level. Hence, AWB (Air Waybill) Tracking has become a crucial piece of documentation for airborne shipping cargo.
Air Waybill tracking offers real-time updates on the shipment movement status, providing relevant information about the air freight processes to all the parties involved.
In this blog, we will explore Airway bill tracking, how it differs from BL or the Bill of Lading, its contents, functions, importance, and much more.
An AWB is a document with an 11-digit unique code that contains all the details about goods transported through an air cargo carrier. It is a binding document (non-negotiable) issued by the carrier that contains the sender and recipient information, terms, and conditions, providing a seamless interchange of shipment status from the shipper to the carrier. Three parties are bound by this AWB, i.e., the sender, airline, and recipient.
Airway bill tracking refers to following the trail or movement of air-freight shipment with the help of the airway bill number. All information, including shipment status, delivery dates, and current position, is directly available on the airline’s websites through a unified interface.
Although Air Waybill and Bill of lading are very similar, they have some key distinctions. The two cannot be substituted for one another. Both documents are crucial for international trade and serve as legal agreements between the carrier and the shipper.
They also include specifics about the commodities, handling them, and where they are going. So, what are the differences?
Let’s find out!
Air Waybill is used to track air freight shipments, whereas the Bill of Lading is given for shipments that will be loaded onto a vessel and shipped over sea routes.
The BL is a document of title to things, which means it serves as ownership evidence for the items. So, an original copy of the Bill of Lading is given up while receiving the goods. However, the AWB is merely delivery proof and does not provide merchandise value.
When issued, an Air Waybill is a non-negotiable document. Buyers need to verify their identities against the information of the company listed on the consignee part of the Air Waybill and pick up the cargo from the destination.
On the other hand, a BL that is issued in a negotiable form signifies ownership of the commodities. So, to receive the cargo, an original copy of the bill of lading must be exchanged with the carrier’s designated agent at the discharge port.
International container transportation follows the standard procedure of issuing bills of lading in a full set, consisting of 3 originals and 3 copies. On the other hand, air cargo carriers issue 3 original and 6 copies of airway bills.
Bill of Lading and Air Waybill are issued in accordance with various governing international regulations.
Warsaw Convention, Hague amendment, and Montreal Convention are the international rules that govern air waybills.
On the other hand, bills of lading follow The Hague Rules, The Hague-Visby Rules, and the US COGSA (US Carriage of Goods by Sea Act 1936) principles.
The air cargo carrier issues an air waybill after the shipment reaches its destination, and the aircraft can take off from the departure airport.
After the commodities are loaded onto a vessel and the vessel leaves the loading port, the carrier shall issue a bill of lading.
All incoterms may be issued for ocean freight per Incoterms 2010 regulations. On the other hand, an air waybill is a transport document issued for air shipments under the terms FAS, FOB, CFR, and CIF. The Incoterms 2010 regulations state that it cannot be used for air shipments.
Now, let us move on to find out how AWB tracking is done via the contents of an Airway Bill.
The details present on the AWB help businesses track their shipments in real-time and offer the same information to the end customers.
The following information is present on the Airway Bills:
The airway bill consists of 3 originals and 6 copies. There are three parties involved in AWB tracking: Carrier, Consignee, and consignor.
The details of the airway bill must match the information present on packages and invoices. The bill must be presented to the banker within 2-3 days from the shipment date or within the time frame specified in the letter of credit.
Although paper bills are still accepted, the majority of air-freight documentation uses the electronic version nowadays. e-AWB tracking was introduced in 2010 and became the default contract of carriage for air cargo shipping in 2019. Storing critical data on digital platforms keeps the information safe and makes them easily accessible to stakeholders whenever required.
In the next section, we will explore the various benefits that the electronic version of paper AWB brings to the table and how freight forwarders can make the most of it.
The establishment of electronic AWB tracking presents several advantages for freight forwarders as well as airlines. By substituting the paper version, e-AWB tracking eliminates the hassle of paperwork, reduces labor and inaccuracies, and enhances communication channels. Listed below are some key advantages of e-AWB tracking for industry stakeholders:
In e-AWB tracking, the data comes directly from the freight forwarders or the key parties involved, ensuring the information is reliable and up-to-date. This means that every stakeholder has real-time information on the shipment status at all times.
As manual communication and individual queries are no longer required for shipment tracking, businesses can focus on more productive work.
AWB tracking allows businesses to check the shipment status on the go without requiring any direct contact or communication with third-party stakeholders or service providers. So, they can save time, money, and resources. Apart from reducing the need for more personnel for communication and collaboration, smart tracking also reduces the need for having customer support staff for tracking queries.
Since e-AWB tracking eliminates paperwork, it reduces document storage expenses, printing costs, archiving costs, etc. Moreover, companies also save the cost and time of transporting documents from one party to another, e.g., freight forwarder to airline.
AWB tracking enables all the stakeholders to have real-time visibility over the shipment movements and makes the entire delivery experience more transparent and reliable. As all the stakeholders have access to the right information at all times, there is no room left for ambiguity. Further, the businesses can check whether the shipment is moving as per the SLAs set with the service provider or not.
Likewise, the end customers know the exact movement of their orders which reduces the number of queries for shipment tracking and also enhances their customer experience.
With e-AWB, there is no need for repeated data keying as done in paper-based processes. Users get real-time visibility to AWB information and no longer have to compare it with system data. Every stakeholder involved can access crucial information on the go, reduce waiting times and ensure the uninterrupted movement of cargo in a timely manner.
Since all the relevant information is stored digitally, businesses no longer pose the risk of misplacing or losing important papers. The increased accessibility of validated data also significantly reduces the possibility of any delay or error.
The Air Waybill bill is designed, distributed, and approved by the International Air Transport Association and is used for the purpose of shipping goods within domestic and international boundaries. In recent times, the AWB has been replaced by e-AWB, which can be both filled and stored electronically. We have listed below the various functions of AWB tracking.
The sender, recipient, and airline are the three parties engaged in the airway bill tracking process. Prior to the shipment of goods, the bill must be filled out with complete details. On signing by the shipper and carrier, the airway bill becomes a non-negotiable contract.
The issuance of an airway bill by an air cargo carrier is proof of evidence that the goods mentioned in the bill have been received. With AWB tracking, the shipping process becomes safe and secure and eliminates any possibilities of tampering.
The airway bill contains complete information about all the parties involved in the trade. These include the address and name of the shipper, the name of the consignee, the airport code consisting of three letters, the destination airport code of three letters, and the number of items. Moreover, the document mentions the shipment value declared for customs, the specifications of the goods, and their nature, such as perishable or non-perishable.
The terms and conditions of the contract, including liability limit and procedure for claim with applicable charges, are also specified.
For the movement of shipments via air, customs authorities require various documents. These include a commercial invoice, packing list, letter of credit, certificate of origin, etc.
However, airway bills are the most vital documents for customs clearance. They are proof of the total freight amount mentioned and billed for the shipment of goods.
AWB tracking enables real-time visibility and provides detailed information on the items with regard to volume, size, and weight. Managers can ensure that containers are filled to the maximum and optimize space management. This also reduces the misplacement of items, which can be a hassle during bulk shipping.
AWB tracking informs all the parties involved regarding the real-time movement of goods about their specific information and status. These include the handlers for shipment dispatch and handling.
Any crucial information can be easily accessed by entering the airway bill number on the carrier’s website. The unique code is present in every document carried with the shipment.
With e-AWB tracking, information can be saved online easily while maintaining data integrity and security. AWB tracking solutions are smart platforms that make it hassle-free for all parties to track down the location of a shipment, check on its status, and arrange for delivery.
With Shipsy, you attain 360-degree visibility of all your shipments and track them in real-time. You can share live tracking links directly with your consumers and receive proactive alerts and notifications via the innovative live tracking platform.
With Shipsy by your side, you can share incredibly accurate dynamic ETA’s, thereby increasing delivery transparency. You can get access to real-time information about delivery status to effectively manage your SLAs and KPIs and more.
Shipsy’s smart end-to-end logistics management platform helps businesses to unlock:
Connect with our experts or request a customized demo to get started with AWB tracking and unlock the bevy of custom SaaS offerings for smart logistics.
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