Air waybill basics: Steps for seamless shipment tracking and processing

If you're running a business in Indonesia and starting to send international parcel shipments by air, you'll quickly encounter a vital document: the air waybill (AWB). You might also be asking, "What is a consignment note, and why is it so important?" 

Simply put, an AWB or consignment note is essentially the receipt for your shipment when you send it by air. It's also a crucial shipping agreement between you and the airline.

For those new to exporting, dealing with shipping documents can feel overwhelming. But understanding the AWB is key to a smoother shipping process. 

Through this guide, you’ll understand what an AWB is, its different types, what information it includes, and how to complete it accurately. By knowing all the details about the air waybill, you can ensure faster customs clearance, avoid costly delays, and significantly reduce the stress of international logistics.

1. What is an air waybill, and why do I need it?

The air waybill is a fundamental document in international trade and shipment tracking, especially for air freight. Besides, it's much more than just a piece of paper—it plays several important roles that directly influence the success of your international deliveries.

As mentioned, the air waybill functions as both a receipt and a shipping agreement for your goods. When you give your shipment to the airline, the AWB serves as your receipt, confirming that they've received your merchandise and are responsible for delivering it as agreed. This is important for you as a shipper because it provides proof that the carrier has taken possession of your goods.

But the AWB's importance doesn't stop there. It's also essential during the customs clearance process because authorities around the world use the information on the AWB to:

• Assess duties and taxes: This directly affects your final costs and the price you can offer your customers.
• Enforce regulations: This ensures your shipment complies with legal requirements, preventing delays and potential fines.
• Ensure compliance with international trade laws: This promotes fair trade and a level playing field for businesses.

For you as a shipper, it’s important to ensure the accuracy and completeness of the information in the air waybill because that would mean:

• Faster customs clearance: Your goods move through customs smoothly, reducing transit times and getting your products to customers quicker.
• Reduced shipping delays: Accurate information prevents hold-ups and avoids costly storage fees.
• Fewer complications: You minimize the risk of legal issues and ensure a more predictable shipping experience.

2. Types of air waybills 

There are several types of AWB, each serving different purposes within the freight sector.:

• Master Air Waybill (MAWB): The MAWB is issued by the main carrier of goods on flights and is used for shipments that typically involve multiple handling agents or airlines. It acts as a shipping agreement between the shipper and the main airline that oversees the consolidation of multiple shipments. The MAWB covers the entire journey from the point of departure to the final destination, facilitating smoother coordination and liability agreements among all parties involved.
• House Air Waybill (HAWB): Used by freight forwarders, the HAWB is issued for each individual shipment within a consolidated load under a single MAWB. It serves as a contract between the shipper and the freight forwarder, detailing the specific terms for the transportation of the goods within the larger consolidated shipment. This separation allows for more detailed tracking and management of individual consignments, providing clear documentation for shippers and recipients. Such granularity facilitates the search and monitoring of specific items within a bulk shipment, enhancing logistical efficiency and transparency.
• Electronic Air Waybill (e-AWB): The e-AWB is becoming increasingly prevalent as it significantly reduces the need for paper-based documentation, streamlining the entire shipping process. This digital version of the traditional air waybill improves the efficiency of data handling and processing, enabling faster transfer of shipping information, reducing errors, and enhancing the overall security of the data. 

3. Navigating shipping with your air waybill

The air waybill is a key document that guides your cargo or package through the shipping process. It also outlines the responsibilities of everyone involved and ensures your parcel moves smoothly.

And if you're shipping with DHL Express, here's how the AWB will function through the air shipment process:

Shipment initiation and pickup

1. The process starts with you, as the shipper, preparing your goods for export, ensuring they are in proper packaging for safe transit.
2. You then schedule a pickup with DHL Express.
3. You then fill out a House Air Waybill (HAWB) via DHL Express's online tool. This document acts as your detailed receipt and provides a unique shipment tracking number, allowing you to monitor your parcel's journey. You can also use this information to send a dispatch note to the recipient.

DHL Express transit and handling

1. DHL Express takes responsibility for your shipment and transports it through its global network.
2. The AWB accompanies your shipment throughout its journey, providing essential information to DHL Express personnel handling your parcel. This ensures that your delivery instructions are followed and that your shipment is routed correctly.

Customs and delivery

1. Upon arrival at the destination, DHL Express handles import regulations and customs clearance processes. The AWB is crucial for this step, providing customs authorities with the necessary details about your shipment.
2. Finally, DHL Express delivers your shipment to the consignee (the receiver) according to the delivery instructions specified on the AWB and in the shipping agreement.

4. How to complete an air waybill step-by-step

Completing an air waybill correctly is crucial for ensuring that your shipment is processed efficiently and without delay. Here's a step-by-step guide to filling out a DHL Express AWB accurately:

Step 1: Fill in Shipper's Information

Include the name, address, and contact information of the person or company sending the shipment.

Step 2: Fill in Receiver's Details

Include the name, address, and contact information of the intended recipient.

Step 3: Fill in Shipping Detail

Verify the delivery date, air way bill number, shipment creation date, and service used.

Step 4: Fill in Package Detail

Ensure the weight of the package, the number of pieces, and package details such as Harmonized System (HS) codes are accurately recorded.

Step 5: Fill in Payer Account Number

Enter the DHL Express account number responsible for paying the transportation fees.

Step 6: Fill in Origin and Destination Codes

Verify the three-letter airport codes for the shipment's origin and destination.

Step 7: Review and Sign

Review the completed AWB to ensure all information is accurate and comprehensive. Sign the AWB to validate the information and authorize the shipment.

Step 8: Attach Necessary Documentation

Attach any additional documentation, such as commercial invoices, certificates of origin, or import/export permits.

Step 9: Submit the AWB to the Carrier

Hand over the completed AWB along with your shipment to the carrier. The carrier will review the AWB for completeness and accuracy before accepting the shipment for transport.

Step 10: Keep a Copy

Always keep a copy of the completed AWB for your records. This will be useful for tracking the shipment, handling potential claims, and maintaining your business records.

5. Tips for accurate and efficient completion

Accurate completion of the air waybill is crucial for a smooth shipping process. Remember, errors can lead to delays, extra costs, and problems with import regulations. So, when preparing your air waybill, consider these tips:

• Complete shipper and consignee information accurately: Ensure all names, addresses, and contact details for both the shipper and the consignee are correct and complete. Inaccurate information can cause delivery instructions to be misdirected or lead to undeliverable shipments.
• Provide a clear and precise goods description: Describe the goods in detail, including relevant Harmonized System (HS) codes and their correct value, to avoid customs clearance delays.
• Specify special handling requirements: Clearly indicate any special handling needs on the packaging, such as "Fragile," "Refrigerate," or "Handle with Care." This prevents damage during air shipment tracking and transit.
• Clarify shipment terms (Incoterms): Specify the agreed-upon Incoterms (e.g., FOB, CIF, DDP) to define responsibilities for costs and risks. This way, you can prevent disputes over duties, taxes, and other fees.
• Review thoroughly before submission: Double-check all information on the AWB before handing it over to the carrier. While at it, ensure all necessary documents (e.g., commercial invoice, certificate of origin) are attached and match the AWB details.
• Use electronic air waybills (e-AWB): If possible, use e-AWBs to reduce paperwork, improve efficiency, and minimize errors.

Shipping made easy: Partner with DHL Express 

Venturing into international shipping can present hurdles. If you’re a new shipper, you may find yourself grappling with complex documentation like the air waybill, varied import regulations, and the need for reliable shipment tracking. Without the necessary tools and information, you may encounter air freight delays.

However, a reliable logistics partner like DHL Express can transform these complexities into a streamlined and efficient experience. DHL Express offers comprehensive international logistics services to guide you through the shipping process.

We understand the concerns of new shippers and provide expert guidance to ensure compliance with import regulations and accurate documentation, including the consignment note. Our advanced shipment tracking systems also provide full visibility for your air freight tracking, and we simplify the entire shipping process, ensuring that your delivery instructions are followed.

By choosing DHL Express, you gain a partner dedicated to handling your international parcel needs with precision and care, allowing you to focus on growing your business.

Open a DHL Express business account today and experience streamlined, efficient international shipping tailored to your needs.