GlossaryEN1 min readUpdated: Jun 24, 2026

Extended Liability Logistics Agreements

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Last updated: 24 June 2026Published: 19 June 2025

Source: https://www.logisticsglossary.com/extended-liability-logistics-agreements

Category

Logistics Concept

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1 min

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138

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Definition & Explanation

Extended liability agreements in logistics come into play when a freight or logistics services contract is negotiated and the statutory liability caps of the applicable freight law—such as those under the CMR Convention or national commercial codes—fall short of the actual cargo value. Shipper and logistics provider contractually raise or waive these limits; the client pays a corresponding surcharge while the service provider increases its insurance coverage. Such arrangements are most common for high-value goods—electronics, fine art, pharmaceuticals—and for just-in-time supply chains where a missed delivery can trigger significant consequential losses. Unlike cargo insurance taken out by the shipper, extended liability agreements place contractual responsibility squarely on the logistics provider. They should not be confused with a declared value clause, which merely adjusts the carrier's liability ceiling under existing law without creating an independent contractual assumption of liability.