How does an Air Waybill differ from a Bill of Lading?

• A. AWB is negotiable and used for air shipments.
• B. AWB is non-negotiable and used for air shipments.
• C. AWB is a type of insurance policy.
• D. AWB serves as title for sea shipments.

Answer: (B)

Understanding how freight documents handle ownership and transfer is the key. An Air Waybill serves as a receipt and contract of carriage for air shipments. It records that the carrier has taken custody of the goods and agrees to transport them, but it does not transfer ownership or title to the goods. That non-negotiable nature is what distinguishes it from ocean documentation.

In contrast, a Bill of Lading used for sea shipments is a negotiable document of title. It can be endorsed or transferred, and possession of the document can be used to claim the goods, effectively transfering ownership along the way. Because of that ability to function as title, it carries different risk and uses, especially in trade finance.

So the statement that the Air Waybill is non-negotiable and used for air shipments captures the essential difference: it confirms carriage and serves as a receipt without transferring title.