Air Freight Alert: Reminder Regarding Revised Liability Limits under the Montreal Convention 1999
As stated in FIATA’s previous communication of 9 November 2024, the liability limits for passenger and cargo claims under the Montreal Convention of 1999 ("MC99") increased as of 28 December 2024, as announced by the International Civil Aviation Organisation (ICAO). A 6-month grace period after 8 December 2024 was provided to give air carriers the ability to properly manage their AWB stock. Editorial changes have been made to all affected IATA Resolutions and Recommended Practices to reflect the revised liability limits without further Conference action required. IATA Resolutions 600i and 672, and IATA Recommended Practice 1679 have been updated to reflect the same change. The corresponding changes to Resolution 600b will take effect on 28 June 2025.
Key changes
According to the changes, the limit for destruction, loss, damage, or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram. (see Article 22, para. 3 MC99).
The limits are set to increase in line with the Convention’s built-in review mechanism, to adjust for inflation every five years so as to ensure that passenger and cargo compensation remain appropriate over time.
Key actions for freight forwarders
Freight forwarders will need to align their documentation and risk management processes when handling air shipments to ensure seamless compliance and account for the increased liability limits. In view of the Resolution 600b changes taking effect as of 28 June 2025, freight forwarders should be mindful as regards the print on the reverse of their House Air Waybill (AWB).
In addition, they should:
- Take note of the new liability limits;
- Notify their shippers and other stakeholders;
- Review and adjust contracts to reflect these new terms;
- Review their liability insurance arrangements and consult with their insurer to ensure that their cover extends to these new limits.
Stay tuned on FIATA's communication channels to keep up-to-date with regulatory changes and ensure your operations are compliant and efficient!