# Compensation for loss of cargo

*Last updated: 2026-06-22*

> Compensation for loss of cargo is the indemnity a carrier or transport insurer owes when goods are wholly or partially lost in transit.

Compensation for loss of cargo is the indemnity a carrier or transport insurer owes when goods are wholly or partially lost in transit. The applicable liability regime depends on the mode of transport: the CMR Convention governs international road freight, the Hague-Visby Rules cover most sea shipments, and the Montreal Convention applies to air cargo. In every case, the carrier's liability is capped – typically per kilogram of gross weight – and actual cargo values frequently exceed those limits, making supplementary cargo insurance standard practice for shippers of high-value goods. The claimant must document the loss and file a formal notice within the prescribed deadlines; late or missing notifications can extinguish the claim entirely. Compensation for loss is distinct from claims for cargo damage or delay, which follow separate liability thresholds and procedural rules.

**Source:** [https://unece.org/transport-logistics-supply-chain-management](https://unece.org/transport-logistics-supply-chain-management)

## Quick Facts

| Property | Value |
|---|---|
| Term | Compensation for loss of cargo |
| Language | EN |
| Word count | 134 |
| Last updated | 2026-06-22 |
| Source | https://unece.org/transport-logistics-supply-chain-management |

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