BIFA News
Montreal Convention liability limits amended
Effective 28 December 2024, the liability limits for passenger and cargo claims under the Montreal Convention of 1999 (MC99) will increase, as announced by the International Civil Aviation Organisation (ICAO). According to the changes, the limit for destruction, loss, damage or delay of cargo will rise from 22 SDR to 26 SDR per kilogram. The liability limits are indicated in Special Drawing Rights (SDR), a unit of account defined by the International Monetary Fund. For indicative purposes, 1SDR was valued at 25 years of service with BIFA Robert Keen, immediate past director general, and Sharon Hammond, events executive, both joined the secretariat staff in 1999 and have each recently clocked up 25 years’ service. BIFA colleagues arranged a small celebration for them and presented certificates to mark the occasion (pictured right).
GBP1.03843 on 21 November 2024. 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 remains appropriate over time. Next steps These updates will affect BIFA Members who 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. Freight forwarders are encouraged to: 1. Take note of the new liability limits; 2. Notify shippers and other stakeholders; 3. Review and adjust contracts to reflect these new terms; 4. Review liability insurance arrangements and consult with your insurer to ensure that your cover extends to these new limits. As informed by IATA, a six- month grace period after 28December 2024 has been given to air carriers to properly manage their AWB stock.
Glück to chair IATA FIATA consultative council BIFA extends its congratulations to Richard Glück on his unanimous election in October 2024 as the fi rst freight forwarder in memory to chair the IATA FIATA consultative council. He will be supported in this role by Stefan Amman from Lufthansa Cargo, who serves as the Cargo Agency Conference chair and will act as an advisor to Richard. The post of chair is held for two years. Both IATA and FIATA were delighted that the meeting proceeded smoothly, and that the decision was reached by full consensus, reflecting the commitment of both parties to a collaborative and constructive approach. Together, they are poised to make the vision of the Global Air Cargo Programme a reality.
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £17.65 per kg
By sea – Hague Visby rules (2 SDR): £2.08 per kg £692.29 per package
BIFA STC: (2 SDR): £2.08 per kg
By road – CMR (8.33 SDR): £8.65 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 21 November 2024, according to the IMF website, was 1.03843)
By air – Montreal Convention (22 SDR): £22.85 per kg
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December 2024 | 7
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