Illustrative scenario: not a real case
Example 5: US$500 per package under US COGSA
The scenario
A US importer buys 12 crated CNC machine heads (6,000 kg gross, US$90,000) from a supplier in Shanghai, shipped to Los Angeles under a bill of lading. US COGSA applies by statute to carriage to or from US ports in foreign trade. The bill of lading lists "12 crates". On discharge, the container is found crushed and all 12 machines are damaged beyond repair. No value was declared on the bill of lading.
The numbers
| Scenario | Regime | Limit (SDR) | Limit (USD) | Cargo value | Uninsured gap | Calculator |
|---|---|---|---|---|---|---|
| China to United States, 12 packages, US$90,000 | US COGSA (Carriage of Goods by Sea Act) | 4,423.28 | 6,000.00 | 90,000.00 | 84,000.00 | Open prefilled |
SDR rate used: 1 SDR = US$1.35646 (2026-10-16), €1.20542, C$1.92214 (IMF, build 2026-10-16). The calculator links use the latest daily rate, so figures may differ slightly.
Step by step
China to United States, 12 packages, US$90,000
Regime: US COGSA (Carriage of Goods by Sea Act). US COGSA applies by statute to bills of lading for carriage to or from US ports in foreign trade.
- US$500 × 12 packages = US$6,000.00
- (Fixed US-dollar amount; other currencies converted via the IMF SDR cross-rate)
- Limit = 4,423.28 SDR = US$6,000.00 / C$8,502.16 / €5,331.91
- Cargo value USD 90,000.00 − limit USD 6,000.00 = gap USD 84,000.00 (6.7% covered)
What it means
US COGSA limits liability to US$500 per package (§ 4(5)): 12 × US$500 = US$6,000. There is no alternative per-kilogram limit, so heavy, valuable items packed one per crate are hit hard. The gap is US$84,000 (93.3% of the value). For comparison, if the same cargo moved under Hague-Visby (for example Shanghai to Rotterdam under a Hague-Visby clause paramount), the kilo basis of 2 SDR × 6,000 kg = 12,000 SDR would give about US$16,278.
Notice: before or at removal, or within 3 days if damage is not apparent (§ 3(6)). Time bar: 1 year from delivery (§ 3(6)).
Takeaways
- On US trades, the per-package limit is a fixed US$500 with no kilo alternative.
- Declaring the value on the bill of lading (usually for an ad valorem charge) is the only way to raise the carrier's limit.
- Cargo insurance is usually the cheaper and broader way to protect high-value machinery.
Background: Declared value (ad valorem) vs carrier liability limits.
Try it with your own shipment
Run the numbers in the free calculator: applicable convention, carrier limit in USD/CAD/EUR, uninsured gap and deadlines.
Limit changes, in your inbox
Get a short email when a limit changes (for example the next ICAO Montreal review) or a country ratifies a convention.
Prototype: this form is not connected yet and stores nothing.This is a fictional, simplified scenario for education. Real outcomes depend on the contract, the facts, the court and the evidence. General information only, not legal or insurance advice. Limits depend on the contract, the documents issued, declared values, national law and the facts of each case. Check the primary sources and consult a qualified professional before relying on any figure.