SDRs reappear with new IATA air cargo liability standards

THE International Air Transport Association (IATA) has announced the standardisation of cargo liability limits, with the Air Waybill (AWB) Conditions of Contract (IATA Resolution 600b) which came into effect on July 1, after it was amended to harmonise the application of the Montreal Convention liability limit for all air cargo across all routes.

This simplified approach is expected to improve efficiency for shippers and forwarders. It is also consistent with industry efforts to improve competitiveness by simplifying global processes with projects including IATA's e-freight, reports Canada's Aviation.ca.

The amendment to Resolution 600b standardises the application of the 19 Special Drawing Rights (SDRs) per kilogramme Montreal Convention liability limit to all routes worldwide.

The report said the following advantages derive from the change: increased certainty for claims handling and service determination; increased accuracy for claims procedures by standardising the various regimes; and the single global standard eliminates the uncertainty that existed when there was no applicable convention, or when existing conventions were out-of-date or required conversions from non-existing currencies, such as French gold francs.
(Source:www.schednet.com)