How much will the carrier pay if your cargo is lost?

Usually far less than the goods are worth. International conventions cap what sea, air and road carriers must pay, and the caps are set by weight or package, not by the value of your goods.

Updated: 2026-10-16

The limits at a glance

An SDR (Special Drawing Right) is a unit of account defined by the International Monetary Fund; its value in dollars changes daily. When ICAO announced the new air limit in October 2024, 26 SDR was about US$35 per kilogram.

A worked example

You ship 500 kg of smartphones by air, worth US$150,000. The phones are stolen at the destination airport.

• Carrier liability: 500 kg × 26 SDR = 13,000 SDR, roughly US$17,500 at the 2024 reference rate.
• Your loss: US$150,000.
• Gap you carry yourself: about US$132,500, before legal costs and the time spent on the claim.

Light, valuable goods are hit hardest, because the limit follows weight rather than value.

When the carrier pays nothing at all

Carriers can also escape liability completely in many situations. Under the Hague-Visby Rules, for example, an ocean carrier is not liable for loss caused by perils of the sea, fire (unless caused by its own fault), or errors in navigating the ship. Natural disasters are generally outside the carrier's responsibility. And you must prove the carrier's liability, within strict time limits.

Why this matters

Carrier liability is a legal minimum designed to protect carriers, not a product designed to protect you. Cargo insurance pays on the insured value you declare, usually CIF plus 10%, whatever the weight of the goods and whether or not the carrier was at fault. See how to work out your insured value.

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