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The international air liability limits for passenger and cargo claims are set to increase under the Montreal Convention of 1999 by December 28, 2024
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This was recently announced by the International Civil Aviation Organization
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The limit for destruction, loss, damage, or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram, according to the changes. (1 SDR = $1.33038)
The international air liability limits for passenger and cargo claims are set to increase under the Montreal Convention of 1999 by December 28, 2024, the International Civil Aviation Organization (ICAO) said in an air freight alert.
The limit for destruction, loss, damage, or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram, according to the changes.
SDRs or special drawing rights is an international reserve asset whose value is based on a basket of five currencies – the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. As of Oct. 25, 2024 1 SDR was valued at $1.33038.
The alert was issued recently by the International Federation of Freight Forwarders Association, which said the limits are increased in line with the Convention’s built-in review mechanism. This is to adjust for inflation every five years or so to guarantee that passenger and cargo compensation stays appropriate over time.
The update affects freight forwarders, as they need to align their documentation and risk management processes when handling air shipments to ensure seamless compliance and account for the higher liability limits.
Freight forwarders are encouraged to:
- Take note of the new liability limits;
- Notify shippers and other stakeholders;
- Review and adjust contracts to reflect the new terms; and
- Review their liability insurance arrangements and consult with their insurer to guarantee that their cover extends to the new limits.
According to IATA, a six-month grace period after Dec. 28, 2024 has been given to air carriers to properly manage their AWB stock.
In accordance with Resolution 600b, editorial changes will be made to all affected IATA resolutions and recommended practices to reflect that new liability limits without need for further Conference action.
The Montreal Convention 1999 – formally known as the Convention for the Unification of Certain Rules for International Carriage by Air – provides a comprehensive and unified framework for the global carriage of passengers, baggage, and cargo by air.
It also sets liability limits for airlines, ensuring fair compensation for consumers in cases of cargo and passenger issues.
It further allows use of electronic tickets and air waybills to enable more efficient risk management.
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