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limitation of damages | Freight-Academy™

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GlossaryEN1 min readUpdated: Jun 19, 2026

limitation of damages

Limitation of damages is a statutory or contractual ceiling on the amount a carrier or freight forwarder must pay for cargo loss, damage, or delay.

Quick Answer

Limitation of damages is a statutory or contractual ceiling on the amount a carrier or freight forwarder must pay for cargo loss, damage, or delay.

The applicable cap depends heavily on the transport mode and governing regime: road transport under the CMR, air freight under the Montreal Convention, and sea freight under the Hague-Visby Rules…

For shippers, this matters because the actual commercial value of goods frequently exceeds these limits by a wide margin – making cargo insurance essential to cover the gap.

Last updated: 19 June 2026Published: 27 January 2026

Source: https://www.law.cornell.edu/wex/limitation_of_liability

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Definition & Explanation

Limitation of damages is a statutory or contractual ceiling on the amount a carrier or freight forwarder must pay for cargo loss, damage, or delay. The applicable cap depends heavily on the transport mode and governing regime: road transport under the CMR, air freight under the Montreal Convention, and sea freight under the Hague-Visby Rules each set distinct thresholds. For shippers, this matters because the actual commercial value of goods frequently exceeds these limits by a wide margin – making cargo insurance essential to cover the gap. Limitation of damages defines the maximum recoverable amount and is thus distinct from the claim for damages itself, which establishes the underlying entitlement.

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Recommended format: Source: Freight Academy – limitation of damages (https://www.freight-academy.com/en/glossary/limitation-of-damages), accessed 2026-09-12
APA style: Freight Academy Editorial Team. (2026). limitation of damages. Freight Academy. https://www.freight-academy.com/en/glossary/limitation-of-damages
BibTeX: @misc{limitationofdamages2026, title = {limitation of damages}, author = {{Freight Academy Editorial Team}}, year = {2026}, url = {https://www.freight-academy.com/en/glossary/limitation-of-damages}, note = {Freight Academy, accessed 2026-09-12} }

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