How to complete consignee and notify fields on an air waybill?

Air waybill is a non-negotiable transport document, which is issued by the air cargo carrier or its agent on behalf of the carrier, used in international air shipments.

Just like other non-negotiable transport documents, air waybills cannot be issued "to order" or "to order of a named company (such as banks)".

As a result air waybills must be issued straight, in other words, consigned to a named company.

Today I would like to explain consignee and notify fields of the air waybill and how to complete them correctly.


What are the differences between air waybill and bill of lading?

Bill of lading and air waybill are two transport documents, which have been widely used in international trade businesses for decades.

Air waybill is a transport document, which is used in airport-to-airport air shipments.

Bill of lading is the generic name of transport documents, which are generally used in port-to-port sea shipments.

There are various types of bills of lading available on the market, each of them fulfilling different needs.
Today I would like to mention the differences between these two important transport documents.

What are the differences between Institute Cargo Clauses B and Institute Cargo Clauses C?

If you would like to secure your international cargo with an insurance policy, you will have 3 options in terms of scope of insurance coverage:

Institute Cargo Clauses (A), Institute Cargo Clauses (B) and Institute Cargo Clauses (C).
  • Institute Cargo Clauses (A) known as All Risks insurance policy and offers the widest range of cover.
  • Institute Cargo Clauses (B) supplies a medium term cargo insurance coverage.
  • Institute Cargo Clauses (C) provides the minimum cargo insurance coverage.
On my previous article, I have explained the differences between Institute Cargo Clauses A and Institute Cargo Clauses C
Today I would like to mention the differences between Institute Cargo Clauses B and Institute Cargo Clauses C?

Who can issue and sign insurance policies?

Some documents used in international trade should be issued and signed by predefined parties in order that document could function its role.

For example, a bill of lading should be issued and signed by the carrier, master or their agents. 

Additionally freight forwarders could issue and sign bills of lading in some occasions.

Likewise, commercial invoices should be issued and signed by the sellers or exporters and pre-shipment inspection certificates are expected to be issued and signed by the independent surveyors.


Today I would like to explain the issuance party of the insurance policies.

What are the benefits of cargo insurance in international trade?

90% of international cargo transportation is carried out by sea. Again overwhelming amount of sea transportation is handled via containers by means of state of art container vessels.

Container shipment can be accepted as one of the safest mode of transportation in international logistics along with air and rail shipments, but even containerized sea shipments are not free of accidents.

Every year around 750 containers lost at sea in minor incidents. When you include catastrophic events 2000-3000 containers lost in aggregate every year in international sea transportation.

If you add piracy, terrorism, war and strike risks, you will reach substantial risk amount not only for sea transportation, but also other modes of transport as well.


The only way to get rid of risks associated with transportation is to secure the shipment with an appropriate cargo insurance. Today I would like to explain the benefits of cargo insurance in international trade.

What does "Franchise" and "Excess" mean on an insurance policy?

Sometimes insurance companies, insurers, would like to limit their risk exposures, especially when certain damage of the goods is an ordinary expectation throughout the related sector.

In such circumstances insurance companies add technical insurance terms,"Franchise" and "Excess", to the insurance policies, in order to limit their financial responsibilities.

On this article I will try to explain the meanings of "Franchise" and "Excess". 


What does "Franchise" mean on a cargo insurance policy? What does "Excess" mean on a cargo insurance policy.

What is the difference between insurance policy and insurance certificate?

There are 3 types of cargo insurance documents available in international marine cargo insurance market.

These are insurance policy, insurance certificate and declaration under an open cover.

Declaration under an open cover is not used so frequently in daily practice comparing to remaining two insurance document types. 

For this reason knowing details of insurance policy and insurance certificate is very important not only for exporters and importers but also other foreign trade participants.

Today I would like to clarify the differences between an insurance policy and insurance certificate on this article.

What is the difference between policy holder and insured on cargo insurance policy?

In some cargo insurance policies identify both policy holder and insured companies, whereas in some cargo insurance policies issued by defining only insured party.

On this article I will try to explain the meanings of "policy holder" and "insured". 

What does policy holder mean on a cargo insurance policy? What does insured mean on a cargo insurance policy.

More importantly are there any differences between these two terms as specified under marine cargo insurance contracts?
 

How to use Institute Strike Clauses in marine cargo insurance policies?

Strike risks, although mostly underestimated by the exporters and importers, could cause serious financial losses to the participants of international trade transactions.

Strikes at world sea ports is not an uncommon event. 

By making a quick google search, you can also see by yourself, how frequently business workflow of world sea ports have been interrupted by strikes.

Today I would like to explain how to eliminate strike risks via marine cargo insurance policies.


How to use Institute War Clauses in marine cargo insurance policies?

War risk is an important risk factor in international cargo transportation.

Most sea routes used by multinational carriers are passing through or near active war regions or potential war risk related areas.

Especially issuing banks in letter of credit transactions should take war risks very seriously and demand an insurance policy covering war risks.

Today I would like to explain the importance of "Institute War Clauses" in international insurance policies.

After reading this short article you should be able to understand whether current cargo insurance clauses cover war risks or not and how to get insured against war risks.
 

Does All Risks insurance policy covers war and strike risks?

Institute Cargo Clauses (C), Institute Cargo Clauses (B) and Institute Cargo Clauses (A) are the most frequently used cargo insurance clauses.

These cargo clauses are written by International Underwriting Association of London.

Institute Cargo Clauses (A), which is also known as "ALL RISKS" insurance policy, offers widest range of risks coverage comparing to other marine cargo insurance types.

But does all risks cargo insurance type covers war risks and strikes risks?


After reading this article, you should be able to reply whether all risks cargo insurance policy covers war and strikes risks or not?

What are the differences between Institute Cargo Clauses A and Institute Cargo Clauses C?

There are 3 types of marine cargo insurance policies available for international transactions.

These marine cargo insurance policy types are known as Institute Cargo Clauses (A), Institute Cargo Clauses (B) and Institute Cargo Clauses (C).

Each marine cargo policy type covers different amount of risks, whereas Institute Cargo Clauses (C) has the minimum coverage and Institute Cargo Clauses (A), also known as all risks, has the maximum coverage.



Today I would like to mention the differences between Institute Cargo Clauses (A) and Institute Cargo Clauses (C).

Certificates of origin issued retroactively or retrospectively

Certificate of origin is a generic name, which describes various types of documents used in international trade to verify the origins of the goods.

It is expected that a certificate of origin should be issued prior to the transport document date.

If a certificate of origin issued after the transport document date, such as after bill of lading date, it must be marked with "issued retrospectively" or "issued retroactively" statement.

On one of my previous articles, I have explained the meaning of issued retrospectively on a GSP Form A certificate of origin.

Today I would like to point out the meaning of issued retroactively and issued retrospectively on ordinary certificates of origin.


As certificate of origin may refer to a wide range of document types, we need to know exactly what types of certificates of origin could be issued retroactively or retrospectively.
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