Clarification on “On Board AWB” and “Inland Transit Limit”

Introduction

Two seemingly simple questions can sometimes hide an important documentary point: what exactly does the wording of the credit or document require us to establish?

In the first question, the issue is whether an “ON BOARD AWB” must evidence the actual flight date. In the second, it is whether an amount shown as an “Inland Transit Limit” can be regarded as the amount of insurance coverage.

Let’s look at each in turn.

✅ Question

Dear Mr. Old Man,

Good Day!

Hope this email finds you well.

Please guide me on the following questions:

1️⃣ I came across an LC with the following AWB requirement:

FULL SET OF ON BOARD AWB consigned…

Does the above clause require the AWB to evidence the actual flight date?

2️⃣ I also came across an Insurance Certificate which indicated an amount under the heading “Inland Transit Limit.”

Can this amount be construed as the Sum Insured?

Could you please explain what “Inland Transit Limit” means?

Regards,

Priya
_____

✅ Answer

Dear Priya,

Thank you for your questions.

1️⃣ “FULL SET OF ON BOARD AWB”

According to ISBP 821 H8(a) and (b), an air transport document is to indicate a date of issuance. This date will be deemed to be the date of shipment unless the air transport document contains a specific notation of the actual date of shipment.

Where the air transport document contains such a specific notation, the date stated in that notation will be deemed to be the date of shipment, whether that date is before or after the issuance date of the air transport document.

In the absence of a specific notation stating the actual date of shipment, any other information appearing on the air transport document relating to the shipment date—including, for example, information in a box labelled “For Carrier Use Only”, “Required Flight Date” or “Routing and Destination”—is to be disregarded when determining the date of shipment.

Therefore, the clause “FULL SET OF ON BOARD AWB” does not, by itself, require the air waybill to evidence the actual flight date.

Also, an air waybill does not need an “on board” notation. Unlike a bill of lading, an air transport document is required to indicate that the goods have been accepted for carriage.

2️⃣ “Inland Transit Limit”

An “Inland Transit Limit” generally refers to a maximum amount for which the insurer is liable in respect of loss or damage occurring during the inland transit portion of the insured journey—for example, while the goods are being transported by truck, rail or barge within a country.

However, an “Inland Transit Limit” should not automatically be construed as the Sum Insured or the amount of insurance coverage.

Even if the insurance document indicates an amount under “Inland Transit Limit”, it must also indicate the amount of insurance coverage, which must be equal to or greater than the minimum amount of coverage required.

Best regards,

Mr. Old Man
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