Readers may recall that the International Civil Aviation Organization (ICAO) recommended increases to the damage limitation provisions under the Montreal Convention 1999 (MC99) in December of 2024. This is part of the regular 5-year review, incorporated into the original  convention, to ensure damage limitations adapt over time to inflation and to industry standards.

That announcement included a six month window for carriers, forwarders, and others to update their documentation. That period has now expired and the new limitations are now in effect from 28 June 2025. 

For air cargo, this reflects an increase in maximum liability from 22 SDR/kg to 26 SDR/kg. 

The “SDR” is the “Standard Drawing Right” of the International Monetary Fund, an imaginary basket of currencies designed to reflect changes in major global currencies without being dominated by any one currency. The SDR is currently worth USD$1.44 or CAD$1.97.

Air forwarders should check their stock of AWBs and ensure they reflect the new provisions. Old stock should no longer be used.