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.

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

This is part of the regular 5-year review, incorporated into the original  convention and administered by the International Civil Aviation Organization (ICAO), to ensure damage limitations adapt over time to inflation and to industry standards. The original cargo limitation of 17 SDRs/kg was increased in 2009 to 19 SDRs, and in 2019 to 22 SDRs.

The maximum liability for loss or damage to air cargo has increased from 22 SDR/kg to 26 SDR/kg. 

Limits on liability for lost or damaged luggage are also increasing, from 1,288 SDRs to 1,519 SDRs, as are limits on liability for delay and for injury to or death of passengers.

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.

Today 1 SDR = USD$1.31 = CAD$1.85

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