Master Air Waybill (MAWB)

Introduction to Master Air Waybill

The Master Air Waybill (MAWB) is always used in airfreight as it is the receipt and evidence of contract with the airline. Airfreight is usually selected as transport mode when lead time is of essence or when the value of the cargo is high. In a typical airfreight scenario, 3 parties will be involved at origin; the shipper (and/or a freight forwarder working on his behalf), an airfreight agent and an airline.

You may wonder why the licensed agent consolidates the goods onto just one Master Air Waybill (MAWB) instead of creating one per customer. The reasons are:

• The more cargo, the better rates. Airfreight rates are usually quoted on a “sliding scale” - e.g. USD 5 per kg for consignments (one MAWB) of less than 500 KGS, but USD 2 per kg for consignments of a total of more than 500 KGS.
• Mixing voluminous but light cargo with heavy cargo can improve the total rate due to the special freight calculation within airfreight.

As mentioned earlier, the freight is calculated based on “converted volume” or “weight”, whichever is the highest value. If you have heavy cargo (but only little volume-e.g. a ship’s motor), you pay relatively little. If you have light cargo which however is voluminous (e.g. garments), you pay relatively much. The freight forwarder can gain advantages by consolidating voluminous goods with heavy goods onto one Master Air Waybill (MAWB).

The Master Air Waybill (MAWB) is a document between the airline and the airfreight agent. The airfreight agent at origin and his handling agent at destination appear as shipper and consignee in the document. Sometimes the Master Air Waybill (MAWB) is showing the actual exporter/importer as shipper/consignee (not the airfreight agent). This is called a Direct Air Waybill.

The Master Air Waybill (MAWB) is issued by an airline but filled in and printed by an airfreight agent on behalf of the airline. What is quite interesting in this scenario is that it is the airfreight agent who fills in and prints the Master Air Waybill (MAWB), not the airline. The airfreight agent acts as an agent on behalf of the airline. In order to do so, the airfreight forwarder must be licensed/certified.

A licensed agent is an airfreight forwarder who is certified/licensed by IATA (is an IATA agent), or has a relationship with/credit approval from an airline. IATA is the International Air Transport Association which is a co-operation of the majority of airlines in the world. If an agent is IATA certified, he can issue Air Waybills (AWB) on behalf of all the airlines who are members of IATA. Some freight forwarders are not IATA certified but have a relationship (credit approval) with one or more airlines. In such case, the agent can be approved or otherwise accredited to issue Air Waybills (AWB) on behalf of these particular airlines.

The Master Air Waybill (MAWB) 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. For consolidated cargo, the Master Air Waybill (MAWB) will refer to “consolidated cargo as per attached manifest” and the cargo details will be updated in the attachment. Some freight 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 freight forwarder directly into the Master Air Waybill (MAWB) manifest. When sending the House Air Waybill (HAWB) details to the licensed agent, the freight forwarder will usually not reveal the name of the actual shipper and consignee.

The Master Air Waybill (MAWB) is filled in and printed by the party who is effecting the booking. Note that the carrier 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 must however ensure that the carriage is completed “within reasonable dispatch”.

Functions of a Master Air Waybill

The main functions of a Master Air Waybill are:

Receipt for goods

The Master Air Waybill (MAWB) is a receipt by the carrier that goods have been accepted for carriage. The document is issued in a number of copies, usually 12, of which the first 3 are considered “originals”. Original 1 is to be signed by the shipper (showing on the Master Air Waybill) or his agent and handed to the carrier. Original 2 is to accompany the goods through to the airport of destination and to the consignee. It is signed by the carrier and the shipper/agent. Original 3 is signed by the carrier and given to the shipper after the goods have been accepted for carriage.

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

Evidence of contract of carriage

The Master Air Waybill (MAWB) is evidence of a contract of carriage between the shipper (as shown in the Master Air Waybill) and the airline. Note that it is not the actual contract of carriage. The actual contract of carriage is the underlying agreement between the carrier and his customer to carry goods. But the Master Air Waybill (MAWB) is prima facie evidence of the terms and conditions agreed.

The Master Air Waybill (MAWB) is not a document of title

The Master Air Waybill (MAWB) is not a document of title. It cannot be consigned “to order” and cannot be transferred to other parties by means of endorsements.

If a Letter of Credit (L/C) requires an original Bill of Lading (B/L) consigned “to order of [bank]”, the Air Waybill (AWB) must be consigned to the bank. In such case, at destination, the airline will only release the goods to the agent/buyer/importer when the bank has sent release instructions to the airline. This is known as a “bank release”.

There is no requirement that an Air Waybill (AWB) document is submitted at destination to effect release of the goods. The carrier will release the goods to the party named as consignee in the Air Waybill (AWB). The carrier must ensure that the party to whom the goods are released are in fact at proper representative of the consignee.

Originals and Copies of Master Air Waybill

An Air Waybill (AWB) is printed in a set of minimum 8 copies of which 3 are considered originals. The 3 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 carrier issuing the Air Waybill (AWB) for accounting purposes and to serve as documentary evidence of carrier’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 carrier’s and shipper’s signature to the contract of carriage.

Airfreight agent’s and Airline’s Responsibility under Master Air Waybill

The main responsibility of the airfreight agent when issuing a Master Air Waybill (MAWB) on behalf of the airline is:

Airfreight agent must ensure correct description of the goods

The consignee may rely on the description of the goods in the Master Air Waybill (quantity, condition) to effect payment. The airline (carrier) will rely on the description of the goods to plan the carriage (aircrafts will have limitations both in volume and weight) and to handle the goods, in particularly when the goods contain hazardous materials. It is therefore essential that the airfreight agent carefully fills out the details in the Master Air Waybill (MAWB). The description is supplied by the shipper (or his agent/freight forwarder) to the licensed agent. If the licensed agent is knowledgeable about a discrepancy (e.g. damages or shortcomings) between the description of the goods and the actual physical state of the goods, he should clearly note this on the Master Air Waybill (MAWB) or refuse to issue the document. In other words, a “clean AWB” should not be issued unless the goods are received without damages, irregularities or short shipment. The licensed agent will issue the Master Air Waybill (MAWB) on behalf of the airline. At time of receipt of the goods, the airline signs a copy of the Master Air Waybill (MAWB) confirming that goods have been received in the state and condition as described in the Master Air Waybill (or they issue a receipt note). If there are any discrepancies, the airline should clearly mark this on the 3 original Master Air Waybills (or refuse to receive the goods). If not, they can be held liable for the discrepancy (e.g. damage).

Airfreight agent must ensure that the goods are ready for carriage

A primary function of the licensed agent is to ensure that the goods are properly packed and labelled when delivered to the airline. For example, that the goods are properly secured onto the pallet and that the required documentation follow the goods. The responsibility of adherence to local and destination security is shared with the other parties involved in the shipment; the freight forwarder and the airline.

The main responsibilities of the airline under a Master Air Waybill (MAWB) are:

The airline must care for the goods while in their custody

If the goods arrive damaged at the airport of destination and no note has been made on the Master Air Waybill (MAWB) regarding the condition of the cargo, it is the carrier’s responsibility. He will become liable for claims made by the consignee within the liability limits set forth in the contract of carriage (stated on the back of the Air Waybill document).

The airline must complete the carriage with reasonable dispatch

A Master Air Waybill (MAWB) is issued before the goods depart from the originating airport, i.e. it does not confirm that the goods have departed. The carrier is however responsible for completing the carriage “within reasonable time”. The flight, date and routing showing on the face of the Master Air Waybill (MAWB) can be changed by the carrier without notice.

Also note that the flight number can actually be a truck number. The carrier is not obliged to transport the goods via air but may use other means of transportation (e.g. trucking) as long as he does so “with due regard to the interests of the shipper”. In some countries this is however not allowed (e.g. USA).

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

A physical copy of the Master Air Waybill (MAWB) is not needed at destination to effect release of the goods, but the carrier is obliged to assure himself of the identity of the party to whom cargo is released. The cargo can only be released to the party named as consignee in the Master Air Waybill (or an appointed agent working on his behalf).

Amendment of Master 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 airline. The carrier must ensure that no changes to the description of the goods are made that can affect his position towards the consignee.

Payment of Master Air Waybill

The charges payable at origin (usually by the shipper) are called “prepaid”. The charges payable at destination (usually by the consignee) are called “collect”. Generally, Master Air Waybills (MAWBs) are always prepaid. Within airfreight, freight rates are quoted based on weight (KGS or LBS). All consignments are converted from volume (CBM) to weight (KGS or LBS) by using the following factor; 1 CBM = 167 KGS. A comparison then takes place between the converted volume and the actual weight of the cargo. The customer pays for whatever is the highest value – gross weight or “volume converted to weight”. You should also note that the freight rate stated on the Master Air Waybill (MAWB) is the so-called official rate or IATA rate. The actual rate paid at origin can however be significantly less. The actual rate will have been stipulated in an underlying contract or agreement between the shipper/agent and the airline. If not prepaid, the printed rate on the Master Air Waybill (MAWB) will be applied at destination. Therefore most Master Air Waybills are prepaid.