Every major cargo liability regime lets the shipper buy its way above the standard limit by declaring the value of the goods, usually for a higher freight rate (the "ad valorem" rate, from the Latin for "according to value"). This guide explains how that works in each regime and why many shippers prefer insurance anyway.
The idea in one sentence
Standard limits exist because carriers price freight by weight and volume, not value. If you tell the carrier what the goods are worth before shipment, and the carrier records it on the transport document, the carrier carries that value at its risk and may charge for it.
Regime by regime
Ocean: Hague-Visby Rules
The package/kilo limit applies "unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading" (Art. IV r.5(a)). Such a declaration is prima facie evidence but not binding on the carrier (r.5(f)). The parties may also agree a higher maximum, but never a lower one (r.5(g)). If the shipper knowingly misstates the nature or value, the carrier is not liable at all (r.5(h)).
Ocean: US COGSA
The US$500 per package limit applies "unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading" (§ 4(5)). Ocean carriers' tariffs typically charge an ad valorem surcharge for this. Check your carrier's tariff before relying on it.
Air: Montreal Convention
The cargo limit (26 SDR/kg since 28 December 2024) applies "unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires" (Art. 22(3)). The carrier then pays up to the declared sum, unless it proves that sum is greater than the consignor's actual interest in delivery. On an air waybill this is the "declared value for carriage" box; "NVD" (no value declared) means the standard limit applies.
Road: CMR
CMR offers two tools. Under Art. 24, the sender may, against an agreed surcharge, declare in the consignment note a value exceeding the 8.33 SDR/kg limit, and "the amount of the declared value shall be substituted for that limit". Under Art. 26, the sender may fix a special interest in delivery for loss, damage or delay, which allows compensation for additional proven loss up to the declared amount. Art. 23(6) confirms higher compensation may only be claimed through Arts. 24 and 26.
Rail: CIM
CIM mirrors CMR: the consignor and carrier may agree a declared value that replaces the 17 SDR/kg limit (Art. 34) and a declared interest in delivery (Art. 35). Unlike CMR, the CIM articles do not themselves mention a surcharge; any charge depends on the carrier's tariff and your agreement.
US trucking: Carmack
Carmack works the other way round. The default is full actual loss (§ 14706(a)(1)); the carrier may offer a lower released rate limiting liability "to a value established by written or electronic declaration of the shipper or by written agreement between the carrier and shipper if that value would be reasonable under the circumstances" (§ 14706(c)(1)(A)). So in US trucking, the shipper's declaration often lowers liability in exchange for cheaper freight. See Carmack and released rates.
A quick comparison
| Regime | Standard limit | How to go higher | Where it's recorded |
|---|---|---|---|
| Hague-Visby | 666.67 SDR/pkg or 2 SDR/kg | Declare nature and value | Bill of lading |
| US COGSA | US$500/pkg | Declare nature and value | Bill of lading |
| Montreal | 26 SDR/kg | Special declaration of interest + supplementary sum | Air waybill |
| CMR | 8.33 SDR/kg | Declared value (Art. 24) or special interest (Art. 26) | Consignment note |
| CIM | 17 SDR/kg | Declared value (Art. 34) or interest in delivery (Art. 35) | CIM consignment note |
| Carmack | Full actual loss | Don't accept a released rate | Bill of lading / tariff |
Declared value or insurance?
Declaring value solves the amount problem, but not the defences problem. If the ocean carrier can rely on the nautical fault or fire defence, or the road carrier on unavoidable circumstances, a declared value does not help, because the carrier is not liable at all. Declared value also does nothing for general average contributions. Cargo insurance on Institute Cargo Clauses (A) covers most of these risks.
Other practical points:
- Cost. Ad valorem freight surcharges are set by each carrier; compare them with an insurance premium for the same value.
- Proof. You still have to prove the carrier is liable and quantify the loss. With insurance, the insurer pays you and then pursues the carrier.
- Documentation risk. If the declaration is not properly inserted in the document, the standard limit applies. Check the printed document, not just the booking.
- Multimodal moves. A declaration on one leg's document may not carry over to another carrier's leg.
Use the calculator to see the standard limit for your shipment, then decide whether the gap justifies a declaration or a policy.