The Importance of Adequate Cargo Insurance Cover

Here are some useful pieces of data on the limits of liability for carriers:-

By SEA – Hague Visby Rules 9 (2 SDR): £2.05 per kg / £684.53 per package

By ROAD – CMR (8.33 SDR): £8.55 per kg

By AIR – Montreal Convention (22 SDR): £22.59 per kg

By AIR – Warsaw Convention (17 SDR): £17.46 per kg

BIFA STC (2 SDR): £2.05 per kg

SDR = Special Drawing Rights – is an international reserve asset or monetary reserve currency, created by the IMF in 1969.

SDR rate is based on a rate of exchange issued by the IMF via their website – for August 16th 2021 the R/Ex was 1 SDR = 1.02679

One can clearly see from the above, why it is so important that companies involved in international trade ensure that they have in place adequate cargo insurance cover.