Understanding Waybills: Meaning, Use Cases, & Importance in Ecommerce Logistics

There are a lot of shipping documents involved when sending products in bulk from their origin to their destination. There’s the bill of lading, packing lists, and invoices, just to name a few. However, another vital document in the shipping process is the waybill. 

Whether you’re shipping domestically or internationally, the waybill plays a key role in making sure your shipments arrive at the right place, on time, and without hiccups. Understanding how a waybill works can save your business from unnecessary delays, costly mistakes, and customer dissatisfaction.

In this article, we’ll break down what a waybill is, how it’s used, and why it’s so important for optimised shipping logistics.

What is a waybill?

A waybill is a non-negotiable document issued by the carrier detailing the transportation of goods. It provides essential information including: 

• The origin of the shipment
• Destination of the shipment
• Type of goods being transported
• Parties involved (the consignor and the consignee)

The main purpose of a waybill is to ensure the accurate transportation of goods by providing clear instructions to shipping couriers. It also acts as proof that goods have been received for shipping and helps ensure they reach their destination.

Key elements of a waybill

A waybill consists of several components that help manage the shipment process:

• Consignor and consignee details: This section includes the name, address, and contact details of both the sender (consignor) and receiver (consignee).
• Shipment information: Here, details about the shipment such as weight, dimensions, and the type of goods are recorded. These details ensure proper handling of the package.
• Origin and destination: The waybill outlines where the shipment is picked up and where it is to be delivered, along with any intermediate stops.
• Carrier information: Information about the carrier, including the transportation company or mode of transport, is listed.
• Handling instructions: This section provides guidelines for handling the shipment, such as “fragile,” “this side up,” temperature requirements, or instructions for hazardous materials.

Each of these elements is crucial for ensuring accuracy during cargo loading and tracking. Understanding these components is vital, as they are part of the common shipping terms that businesses need to familiarize themselves with for efficient shipping management.

What is a waybill number?

The waybill number is a unique identifier that serves as the tracking number for a shipment. It’s used to monitor the movement of goods, from the point of origin to the final destination. Shippers and receivers can use an online tracking tool to check the status of their shipments in real-time, helping to ensure on-time delivery and allowing both parties to stay informed about potential delays or issues.

The waybill number is critical in managing ecommerce logistics, particularly when multiple shipments are in transit. It enables companies to track shipments efficiently, avoid misplacements, and provide transparency for both businesses and customers.

Waybill vs. bill of lading

A bill of lading and a waybill are both essential shipping documents, but they serve different purposes and have distinct features.

• Bill of lading:
  • A legal document between the shipper and carrier.
  • Serves as both a receipt and a transfer of ownership to the consignee.
  • Negotiable: goods are released only to the holder of the original document, adding security.
  • Acts as a contract and title to the goods.
• Waybill:
  • A non-negotiable document focused on shipment instructions.
  • Does not transfer ownership of the goods.
  • Enables faster, streamlined deliveries without requiring the original document.
  • Ensures proper handling and delivery rather than serving as a title.

While both documents are crucial, a bill of lading emphasizes ownership and security, while a waybill prioritizes speed and efficiency in transportation.

How waybills are used in shipping & logistics (functions)

Waybills play several crucial roles in the shipping and logistics industry. Here’s how they contribute to efficient shipping operations:

Contract of carriage

A waybill serves as a contract of carriage between the sender and the carrier. It legally binds the carrier to transport goods as outlined in the document, ensuring both parties are protected.

Receipt of goods

A waybill is also a receipt of goods, proving that the carrier has received the shipment and is responsible for its delivery. This is particularly important for tracking liability in case of damage or loss during transit.

Guide for freight carrier

The details listed in the waybill guide the freight carrier, providing them with the necessary information to deliver the shipment. This ensures that the shipment follows the correct route and reaches the intended recipient.

Customs clearance

In international shipping, waybills provide crucial information needed for customs clearance. By listing the contents of the shipment, the destination, and the value, waybills help customs officials determine any applicable duties and taxes, speeding up the clearance process.

Dispute resolution

Should any issues arise during shipment, such as loss or damage, the waybill serves as legal evidence to resolve disputes between the shipper and carrier.

6 types of waybills

Ecommerce businesses may encounter several types of waybills, depending on their shipping needs. Here are some of the most common:

House waybill

A house waybill is issued by a freight forwarder to outline the individual details of a single shipment, commonly used alongside a master waybill.

Master waybill

A master waybill is issued by the main carrier to summarize multiple shipments under one document, corresponding with the individual house waybills.

Air waybill (AWB)

An air freight waybill is used for air cargo and is issued by an air carrier. It serves as both a contract of carriage and a receipt of goods.

Sea waybill

A sea waybill is used for ocean freight, providing shipping instructions and details without acting as a title to the goods.

Rail waybill

A rail waybill is used for shipments transported by train, providing instructions and information for the movement of goods via rail networks.

Multimodal transport waybill

A multimodal transport waybill is used when goods are shipped using more than one mode of transport, such as air, sea, and road. This waybill covers the entire journey of the goods, simplifying documentation.

How ShipBob can take waybills and your entire fulfilment operations to the next level

Partnering with a 3PL like ShipBob, you can elevate your logistics operations by integrating waybill management into a comprehensive ecommerce fulfilment strategy. Here’s how:

Full-stack technology integration

ShipBob’s integrated technology stack includes a robust warehouse management system (WMS) and merchant application, enabling seamless waybill management.

These processes ensure that electronic waybills are automatically generated, updated, and tracked within the system, reducing manual errors and improving efficiency.

Real-time tracking and visibility

ShipBob provides real-time order tracking capabilities for all shipments, accessible through our platform. Merchants can track the status of waybills and customers can track their orders in real-time, enhancing transparency and customer satisfaction.

Automated customs documentation

For international shipments, waybills need to comply with various customs regulations.

ShipBob’s system automatically generates the necessary customs documentation, including waybills, ensuring compliance and smooth customs clearance. This reduces delays and potential fines associated with incorrect documentation.

Enhanced data analytics

ShipBob’s fulfilment technology provides detailed analytics on ecommerce shipping data. Merchants can use this data to optimise their shipping strategies, monitor performance, and make data-driven decisions to improve their logistics operations.

Global fulfilment network

With over 50 fulfilment centres across the United States, Canada, Europe, and Australia, ShipBob ensures waybills are managed efficiently across multiple locations.

This extensive network allows for optimised shipping routes and faster delivery times, with waybills accurately reflecting the most efficient path for each shipment.

Case Study: Semaine Health

When Semaine Health experienced rapid growth, they partnered with ShipBob to scale their logistics operations. With ShipBob’s expertise in waybill and shipping documentation management, Semaine Health achieved a 99.95% order accuracy rate and reduced their average time in transit by 1.6 days.

Waybill FAQs

Here are answers to commonly asked questions about waybills.