House Air Waybill (HAWB)

Introduction to House Air Waybill

The House Air Waybill (HAWB) is a document between the airfreight agent/airfreight forwarder and his customer. It is customary within airfreight agent/airfreight forwarder that the actual shippers and consignees (the merchants) do not deal directly with the carrier (airlines). The carrier (airlines) usually work together with airfreight agents/airfreight forwarder. The contract between the carrier (airline) and the airfreight agent/airfreight forwarder is evidenced by the Master Air Waybill (MAWB) whereas the contract between the airfreight agent/airfreight forwarder and his customers is evidenced by the House Air Waybill (HAWB).

The format of the House Air Waybill (HAWB) is very similar to the Master Air Waybill (MAWB) (follows the IATA standard). The terms and conditions printed on the back of the document are usually identical to those that apply to Master Air Waybills (MAWBs). In this way, the airfreight forwarder ensures that he has the same liability towards his customer as the liability he is offered by the carrier (airline) under his own Master Air Waybill (MAWB).

House Air Waybill (HAWB) is issued by an airfreight forwarder/airfreight agent to his customer. House Air Waybill (HAWB) evidences a contract of carriage between the airfreight agent/airfreight forwarder and the shipper/consignee in the House Air Waybill (HAWB). If any goods are lost or damaged under a House Air Waybill (HAWB), the issuing party (the airfreight forwarder) is liable towards the shipper/consignee in the House Air Waybill (HAWB).

All Air Waybills (AWBs) function as receipt for goods and evidence of contract of carriage. No Air Waybills (AWBs) are documents of title, i.e. no types of Air Waybills (AWBs) can be consigned ‘to order’ and they cannot be endorsed.

The House Air Waybill (HAWB) is filled in and printed by the party who is effecting the booking. Note that the carrier (airline) can change flight number and departure date without notice to the shipper/consignee. The Air Waybill (AWB) does not confirm that the goods have departed, only that they have been accepted for carriage. The carrier (airline) must however ensure that the carriage is completed ‘within reasonable dispatch’.

The House Air Waybill (HAWB) contains a short description of the goods, the number of pieces and the volume (cubic) of the goods. Often, the description field also contains details on the dimensions of the cargo for airline use. There are specific rules for the description of dangerous goods and live animals.

Some airfreight forwarders send their House Air Waybill (HAWB) details to the licensed agent electronically. In this way, the licensed agent will create the Master Air Waybill (MAWB) almost automatically by incorporating the details updated by the airfreight forwarder directly into the Master Air Waybill (MAWB) manifest. When sending the House Air Waybill (HAWB) details to the licensed agent, the airfreight forwarder will usually not reveal the name of the actual shipper and consignee.

The charges payable at origin (usually by the shipper) are called ‘prepaid’. The charges payable at destination (usually by the consignee) are called ‘collect’. House Air Waybills (HAWBs) can be both prepaid and collect.

An original House Air Waybill (HAWB) is not collected at destination before releasing the goods. There are no requirements to keep House Air Waybill (HAWB) copies on file.

Functions of House Air Waybill

The main functions of a House Air Waybill (HAWB) are:

Receipt for goods

The House Air Waybill (HAWB) is a receipt by the airfreight forwarder that the goods have been accepted for carriage. The House Air Waybill (HAWB) will usually have been prepared before the goods are delivered to the airline. In principle, the licensed agent/airfreight forwarder should not release the House Air Waybill (HAWB) to the shipper before the airline has accepted the goods and signed the Master Air Waybill (MAWB) (in case, at time of receipt, the airline makes notations on the MAWB regarding the condition of the cargo, e.g. damages).

Evidence of contract of carriage

The House Air Waybill (HAWB) evidences a contract of carriage between the issuing agent (the airfreight forwarder or airfreight agent) and the shipper/consignee on the House Air Waybill (HAWB). The House Air Waybill (HAWB) is prima facie evidence of the terms and conditions agreed. Note that it does not evidence a contract of carriage with the carrier (airline). The contract of carriage with the airline is evidenced by the Master Air Waybill (MAWB).

The House Air Waybill (HAWB) is not a document of title

A House Air Waybill (HAWB) is not a document of title. It cannot be consigned ‘to order’ and cannot be transferred to other parties by means of endorsements. There is no requirement that a House Air Waybill (HAWB) is submitted at destination to obtain release of the goods. The airfreight forwarder (handling agent) at destination will release the goods to the party named as consignee in the House Air Waybill (HAWB). The airfreight forwarder himself must first obtain release of the goods from the carrier (airline) based on the Master Air Waybill (MAWB).

If a Letter of Credit (L/C) requires an original Bill of Lading (B/L) consigned ‘to order of [bank]’, the House Air Waybill (HAWB) must be consigned to the bank. In such case, at destination, the carrier (airline) will only release the goods to the agent/buyer/importer when the bank has sent release instructions to the airfreight agent. This is known as a ‘bank release’. The bank is the consignee on the House Air Waybill (HAWB) and only upon confirmation from the consignee, will the forwarder release the goods to another party.

Airfreight Agent’s and Airline’s Responsibility under House Air Waybill

The main responsibilities of the airfreight forwarder/ airfreight agent when issuing a House Air Waybill (HAWB) are:

To ensure correct description of the goods

The importer will rely on the description in the House Air Waybill (HAWB) and expect to receive the goods in the quantity and condition as described. The licensed agent will rely on the House Air Waybill (HAWB) to fill out the description of the goods in the Master Air Waybill (MAWB).

If any shortcomings, damages or other discrepancies are noted on the Master Air Waybill (MAWB) by the carrier (airline) or the licensed agent, the airfreight forwarder should ensure that such notation is also inserted on the House Air Waybill (HAWB).

To care for the goods also while in the airline’s custody

By issuing a House Air Waybill (HAWB), the airfreight forwarder takes on the responsibility as a ‘carrier’ for the goods, even when the carriage is sub-contracted to a carrier (airline). If the goods are lost or damaged in transit, the airfreight forwarder becomes responsible towards the exporter/importer. The exporter/importer will file a potential claim against the airfreight forwarder, not the carrier (airline). If the goods were damaged or lost by the carrier (airline), the airfreight forwarder will have to file claim against the carrier (airline) based on the Master Air Waybill (MAWB).

To ensure that the carriage is completed within reasonable dispatch

A House Air Waybill (HAWB) is issued before the goods depart from the originating airport, i.e. it does not confirm that the goods have departed-only that they have been accepted for carriage. The airfreight forwarder is however responsible for ensuring that the carriage is completing ‘within reasonable time’.

To ensure that the party to whom the goods are released at destination is in fact a representative of the consignee

The cargo can only be released at destination to the consignee named in the House Air Waybill (HAWB) or a representative appointed by him. The airfreight forwarder at destination will have to obtain release of the goods from the carrier (airline) before she can release the goods to the consignee (the importer). The importer cannot obtain release of the goods directly from the carrier (airline) as he is not the consignee on the Master Air Waybill (MAWB).

Originals and Copies of House Air Waybill

An Air Waybill (AWB) is printed in a set of minimum 8 copies of which 3 are considered originals. The 3 Air Waybill (AWB) originals (part 1, 2 and 3) bear on the reverse the conditions of the contract and all have the same validity.

Original-1 (for issuing carrier) is retained by the airfreight forwarder issuing the Air Waybill (AWB) for accounting purposes and to serve as documentary evidence of forwarder’s and shipper’s signature of the contract of carriage.

Original-2 (for consignee) accompanies the consignment all the way to final destination and will be given to the consignee (or his agent) on delivery.

Original-3 (for shipper) is given to the shipper and serves as proof of receipt of goods for shipment and documentary evidence of the forwarder’s and shipper’s signature to the contract of carriage.

Amendment of House Air Waybill

A shipper can amend his release instructions (consignee name) until such time as the cargo has been physically released to the consignee. Amendments should be made in writing and are always subject to acceptance by the airfreight forwarder. The forwarder must ensure that no changes to the description of the goods are made that can affect his position towards the consignee.