GlossaryEN1 min readUpdated: Jun 13, 2026

Compensation for loss of cargo

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

Last updated: 13 June 2026Published: 19 June 2025

Source: https://unece.org/transport-logistics-supply-chain-management

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Compensation for loss of cargo is the indemnity a carrier or transport insurer owes when goods are wholly or partially lost in transit. Applicable liability regimes vary by mode: the CMR Convention governs road freight, the Hague-Visby Rules (or Hamburg Rules) apply to sea freight, and the Montreal Convention covers air cargo. In each case, the carrier's liability is capped – typically expressed as a maximum per kilogram of gross weight – and actual cargo values frequently exceed those limits, making supplementary cargo insurance standard practice. The claimant must document the loss and submit a formal notice within the prescribed time limits, as late claims may be barred entirely. Compensation for loss should be distinguished from claims for cargo damage or delay, which follow separate liability thresholds and procedures.

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Compensation for loss of cargo

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