Logistics Terms What Are the Differences? Bill of Lading vs Air Waybill

Bill of Lading (B/L) vs Air Waybill (AWB) at a Glance

Transport Document Comparison by Title Status

Bill of Lading

Definition

A bill of lading is a document in which the shipowner certifies that he has loaded his vessel with the cargo commissioned by the shipper or has received the cargo for shipment, and undertakes to carry it to the port of discharge or destination, where it will be delivered to the consignee or his instructions under certain conditions.

A bill of lading is a security that entitles the carrier to take delivery of the goods at a specified port of discharge after the goods have been loaded on board a vessel in accordance with the terms and conditions stated in the security. The issuer of a bill of lading is the carrier or shipowner, and it serves as evidence of delivery of the goods. Bills of lading can be divided into straight bills of lading, where a specific consignee is named on the bill of lading, and order bills, where the bill of lading does not name a specific consignee but simply states “To Order”, “Order of Shipper”, or “Order of xx Bank”. In practice, order bills of lading are commonly used and are transferable and tradeable.

The original bill of lading (OBL) can be a single document, but usually three documents (original, duplicate, and triplicate) are issued as a set. The original bill of lading must be handled with care, as the consignee will not be able to locate the shipment, and reissuing it is a complicated process. In addition, the bill of lading contains all the information related to the contract of carriage, so it is important to fill in the information carefully as any mistakes can be costly.

With the rapid growth of maritime transportation at the turn of the 19th century, ocean carriers began to include many disclaimers in the original bills of lading to secure favorable terms for themselves. However, these disclaimers became increasingly problematic, and in 1924, the International Law Association enacted the Hague Convention, which imposed a duty of care on carriers and prohibited disclaimers for breach of that duty. Finally, in 1971, the Hague Rules were amended to create the Hague-Visby Rules, which define the responsibilities of carriers and users.

[Sample Bill of Lading]

Type

1) Original Bill of Lading

This is the most fundamental bill of lading and is usually required to take delivery of the goods. The original bill of lading consists of three copies: the original bill of lading, a bank draft, and a photocopy. All three must be present in order to take delivery of the cargo, and a photocopy is not legally binding, thus requiring extra caution when handling.

2) Straight Bill of Lading

This is a non-transferable document, which means that only the party named in the document can take delivery of the goods. Straight bills of lading are often used for the transportation of cargo that does not require distribution, such as personal effects or moving goods, rather than trade cargo transactions.

3) Order Bill of Lading

The order bill of lading is a security that can be traded and can act as a security. In the case of an order bill of lading, the consignee field is left blank and is filled out by the instructor only. It is commonly used in most types of trade transactions.

4) Bearer Bill of Lading

On a bearer bill of lading, the consignee line is left blank and no specific consignee's name is written on it, meaning that anyone who holds it can take delivery of the goods.

5) Switch Bill of Lading

This is a document with a different exporter and actual shipper and is used to replace the original bill of lading provided at the time of shipment. It is usually used by intermediary traders to protect the exporter from exposure if the importer is reluctant to divulge the exporter's information.

6) Surrender Bill of Lading

This is a document representing that the exporter has relinquished its authority over the cargo. It is a kind of evidence that does not have the nature of a security but only proves the transportation contract and the acceptance of the cargo, and when issued as such, the goods can be delivered without the original bill of lading.

(Source : Getty Images Bank)

Required Information

1) B/L No

• Bill of lading number to track the location of the shipment.

2) Shipper

• Name or business name of the shipper who contracts with the carrier and sends the cargo.

Shipper does not have to be the same as the beneficiary of the letter of credit, address and contact information may be omitted, and depending on the bill of lading, it may be listed as consignor instead of shipper.

3) Consignee

• The business name or name of the consignee receiving the goods.

4) Notifying Party

• Name and address of the importer.

Party to be contacted when the shipment arrives in the importing country.

5) Ocean Vessel (Vessel Name)

• Name of the vessel responsible for the transportation.

6) Port of Loading

• The place of loading to confirm the origin of the shipment.

7) Place of Receipt

• The place where the carrier receives the shipment from the shipper.

8) Voyage No.

• The direction of east, west, south, and north shall be written before and after the voyage number.

This is used to categorize exports and imports based on the port of departure.

9) Port of Discharge

• The place where the cargo is actually loaded onto the ship.

10) Place of Delivery

• The place where the carrier delivers the cargo to the consignee

This is where the carrier's liability actually ends.

Bills of lading come in a variety of forms, and you should add the information as appropriate for each form.

Air Waybill

Definition

The air waybill usually consists of three originals and nine copies, each with a different color and purpose: green for the carrier, red for the consignee, and blue for the shipper. Only one blue shipper's original needs to be presented during the transaction.

The Warsaw Convention was the first air transportation convention, signed in Warsaw in 1929 to limit the liability of international air carriers and establish a uniform system for the handling of claims arising out of international aviation. In 1955, a treaty was signed in The Hague to amend the Warsaw Convention on certain rules of international air transportation, known as The Hague Amendment Treaty.

[Example of Korean Air's Air Waybill]

1) ①

Airline's unique number

2) ② ~ ⑥ Shipper(Sipper’s Name, Adress)

Shipper and consignee information

3) ⑦ Agent's IATA Code

The IATA code of the agent issuing the air waybill

4) ⑩ Account Information

Accounting information such as transportation fee payment method

5) ⑪(a,c,d,f) to/by

If transported by more than one aircraft, indicate the code of each arrival and transit airport

6) ⑪(b) By First Carrier

The exact name and code of the airline

7) ㉒ ~ ㉖

Describe the cargo details

Type

1) Master Air Waybill (MAWB)

Master air waybill is a document issued by the airline that ships the cargo, and since the forwarder is basically involved in the trade transaction, the airline first issues the MAWB to the forwarder to confirm the cargo transportation. The owner of the document can be either the shipper or the forwarder, so the shipper fills out the HAWB. MAWB is a higher-level document.

2) House Air Waybill (HAWB)

House air waybill is a document issued by the forwarder to the shipper, and the forwarder, having received the MAWB, distributes the waybill of the cargo to each shipper based on the MAWB issued by the airline. HAWB is a lower-level document.

Bill of Lading vs Air Waybill

Difference

[Bill of Lading vs Air Waybill]

2025–2026 Transport Document Latest Trends

• eBL adoption accelerating: Major carriers' commitments to electronic bills of lading and MLETR-based legislation are driving replacement of paper B/Ls.
• Rising demand for responses to original document missing: On short-haul routes cargo often arrives before documents, expanding use of surrendered B/Ls and sea waybills.
• Advancement of e-AWB standardization: IATA's e-AWB program continues to raise the share of electronically issued air waybills.
• Document fraud risk responses : Ongoing trade finance fraud cases are prompting carriers and banks to strengthen document authentication.
• Advance customs data filing expansion: Broader pre-arrival filing requirements (U.S. CBP, EU ICS2) raise the accuracy bar for B/L and AWB data.

Three Strategies for Shippers

① Match the transport document to your payment terms

An order B/L is used when the letter of credit calls for one or when cargo may be resold in transit. The actual document required depends on the L/C terms. Where payment risk is low (e.g., intercompany trade), a sea waybill or surrendered B/L can reduce original-document delays.

② Manage original document loss and delay risk in advance

Recovering from a lost original B/L can take months through court procedures. Split courier routes for originals, or consider using eBL/surrendered B/L in advance.

③ Cross-verify data consistency across documents

Key data such as shipper name, description, quantity, and weight must be consistent across documents. Acceptable discrepancies vary by regime and document, so check the applicable filing requirements.

Transport Document Practical Checklist

• ✔Decide the document type (order vs straight) based on payment terms (L/C, T/T).
• ✔Check that shipper, consignee, and notify party information match the commercial invoice.
• ✔Confirm description, quantity, weight, and marks match the packing list and manifest.
• ✔Track courier routing and arrival timing management for original B/Ls. (to respond to missing of originals)
• ✔Since AWBs are straight documents, double-check consignee details for errors.

Frequently Asked Questions

Q1. Bills of lading are non-transferable and non-tradeable, but are air waybills transferable and tradeable depending on their types?

No, they are not.

Since air freight transportation takes less time than ocean transportation, there is no need to transfer the rights of the cargo during transportation. Therefore, the cargo delivery process is performed in a relatively simple and straightforward manner.

Q2. What should I do if I lose one of the three original bills of lading issued?

It depends on whether the cargo has been shipped or not.

If the cargo has not yet been shipped, the transaction may become void, and if it has already been shipped and delivered, you will need to obtain a court declaration of possession.
Then you have to apply for a reissuance, which is a long and complicated process that can take months. Since you do not have ownership of the cargo, you cannot take it out, which means you will have to pay for warehousing costs.

Q3. I heard that straight bill of ladings are also transferable in certain cases. What are those cases?

You can check the endorsement and assignment details of the bill of lading.

In Korea, if the bill of lading does not prohibit assignment, it can be transferred by assignment. However, since international law prohibits assignment, it is not possible to assign the bill of lading in cross-border transactions.

Q4. Can an Air Waybill (AWB) be transferred like a Bill of Lading?

No. AWBs are issued only as straight documents and are not documents of title, so they cannot be endorsed. Air transit is short, so transfer of rights in transit is rarely needed.

Q5. What happens if an original B/L is lost?

Cargo release stalls because no original can be presented. In Korea, reissuance requires a court nullification judgment, which can take months while storage costs accrue.

Q6. What is a surrendered B/L?

The shipper surrenders the original B/L to the carrier so the consignee can take delivery without presenting one. It solves document delays but weakens the B/L's delivery control function, so payment terms and counterparty credit should be assessed separately.

Q7. Which is processed faster, a B/L or an AWB?

Generally the AWB. Cargo is released to the named consignee without presenting an original, and e-AWB routes are handled electronically.

Q8. Does an eBL have the same legal effect as a paper B/L?

In countries and trade where the legislation is introduced, an eBL carries equivalent effect. Acceptance and platform choice vary by jurisdiction, so agree terms with your counterparty and bank in advance.

Q9. Can I manage B/Ls and AWBs on Cello Square?

Cello Square enables integrated digital management of trade documents such as B/Ls and AWBs and real-time tracking of end-to-end process from shipment, customs, to arrival.

📚 References

• ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
• IATA — e-AWB / Cargo Services Conference Resolutions
• UNCITRAL — MLETR (Model Law on Electronic Transferable Records)
• DCSA / FIT Alliance — Electronic Bill of Lading Standards
• Samsung SDS — Cello Square Logistics Market Update