Bill of lading is a document issued by sea carrier of goods on receipt of cargo to him from the

shipper. Bill of lading is issued to shipper after completion of export customs clearance procedures
at load port customs location of the country.
After completion of export customs formalities, shipper hands over cargo to sea shipping carrier or
his agent. As proof of receipt of goods, sea carrier or his agent issues a document which is called
bill of lading. Bill of lading is generally issued in triplicate with non negotiable copies. BL also is
issued in quintuplicate on special request by shipper.

Once after obtaining original bill of lading from the sea carrier, shipper submits bill of lading with
other documents with his bank, in turn bank sends to importer through importer’s bank. Importer
collects bill of lading and other required documents from his bank and arranges for import customs
clearance procedures. The shipper can surrender original bill of lading at load port where BL has
been released and arranges to send a OBL release message to the counterpart office of sea carrier
and advise them to release cargo without insisting for original bill of lading from consignee. The
shipper also can release Seaway bill where in no original bill of lading procedures involved.

Airway bill is issued by air carrier of goods on receipt of goods after completion of export customs
formalities of the country. Shipper obtains airway bill once after handing over cargo to them. Since
the cargo reaches by air and transit time is too less compared to sea shipment, a set of airway bill is
sent along with the cargo for immediate reference on transit and for import customs clearance at
destination port by importer. Once after completion of customs formalities at load port customs
location, cargo transfer manifest (CTM) issued by IATA agent along with airway bill and other
required documents for transportation submits to air carriers. Original airway bills are issued in
quintuplicate which is meant for carrier, importer, shipper and additional copies. Once after arrival
of cargo at destination, the importer or his cargo agent approaches the destination office of air
carrier and collect airway bill and other required documents sent by shipper along with cargo for
necessary documentation for import customs clearance procedures and other references. Importer
may also collect copies of documents by courier or mail from shipper before arrival of goods.
The shipper also can arrange to send airway bill and other documents through his bank to meet LC
requirements or he desires.
Airway bill is issued by air carrier of goods on receipt of goods after completion of export customs
formalities of the country. Shipper obtains airway bill once after handing over cargo to them. Since
the cargo reaches by air and transit time is too less compared to sea shipment, a set of airway bill is
sent along with the cargo for immediate reference on transit and for import customs clearance at
destination port by importer. Once after completion of customs formalities at load port customs
location, cargo transfer manifest (CTM) issued by IATA agent along with airway bill and other
required documents for transportation submits to air carriers. Original airway bills are issued in
quadruplicate which is meant for carrier, importer, shipper and additional copies. Once after arrival
of cargo at destination, the importer or his cargo agent approaches the destination office of air
carrier and collect airway bill and other required documents sent by shipper along with cargo for
necessary documentation for import customs clearance procedures and other references. Importer
may also collect copies of documents by courier or mail from shipper before arrival of goods.
The shipper also can arrange to send airway bill and other documents through his bank to meet LC
requirements or he desires.
The major difference between bill of lading and Airway bill is that, Airway bill is not a document of
title. However, airway bill can be prepared in such a way to treat as document of title and negotiable
document.
1.Document of Tittle.
Bill of lading,when is ussued in negotiable form, represents title to the goods. For this reason at
least one original copy of the bill of lading must be surrendered to the carriers nominated agent at
the port of discharge in order to collect the goods.
Air way bill, on the other hand, is always are non-negotiable transport document. Buyers could
collect the consignment from the carrier at the air port of destination by simply proving their
identities against the company information stated on the consignee part of the air way-bill.

2. Issuance Time.
Bill of lading should be issued by the carrier, After the goods shipped on board a vessel and the
vessel dentures from the port lading.

Air way bill should be issued by the air cargo carrier, after the complete consignment has been
received by the carrier and the aircraft dentures from the airport dentures.

3. how many originals and copies issued.

It is a standard practice in international container transportation to issue bill of lading in full set, 3
originals and 3 copies.

Air way-bill, on the other hand, issued by the air cargo carrier in 9 originals. On the below figure,
you can find how many air way-bill issued per each air shipment and how all these copies will be
distributed among the various parts of that particular transaction.

4. Mode of transport
Bill of lading should be used with port-to-port sea shipment, where as air way-bill should be used
with air shipment.

5. Applicable Incoterms.

Bill of lading is a transport document, which is issued in sea shipments. According to incoterms
2010 rules all incoterms can be used with sea shipment.

Air way-bill is a transport document,which is issued in air shipment and FAS, FOB, CFR and CIF
incoterms can not be used with air shipments according to incoterms 2010 rules.