To Whom It May Concern,
The Convention for the Unification of Certain Rules for International Carriage by Air, done at Montréal on 28 May 1999 (commonly known as the Montreal Convention of 1999 or MC99) establishes in Article 22 the liability limit of the air carrier for damages in relation to the carriage of cargo. The liability limit is expressed in Special Drawing Rights (SDRs), a unit of currency whose value is set by the International Monetary Fund. Today the MC99 liability limit for cargo is 19 SDR per kilo.
As many of you are aware, MC99 provides in Article 24 (Review of Limits) a built-in mechanism, sometimes referred to as the escalator clause, which sets out the process for a review and revision of liability limits by the ICAO Council every 5 years. ICAO basis its decision to increase the liability limit on a consumer price inflation-index; if such index demonstrates an inflation increase by a factor in excess of 13% over the last time the limits were increased, ICAO will recommend a corresponding adjustment to its Member States. In April of this year, the ICAO Council determined that the inflation threshold had been triggered by a factor of 13.9% and proposed an increase from 19 SDR per kilo to 22 SDR per kilo.
Member States have until September 30, 2019 to disapprove of the liability limit increase, however, it is fully expected that that a majority of Member States will not object to the increase and the new limit will be declared effective as of December 28, 2019.
Accordingly, the CPCMG notifies the CAC and CSC Accredited Representatives that:
1) Carriers are advised to notify their shippers, cargo agents/forwarders, insurers, and claims
departments of the increased liability limit from 19 SDR per kilo to 22 SDR per kilo for carriage of cargo governed by MC99 taking place on or after December 28, 2019; and
2) As authorized by footnote 1 of Resolution 600b (Conditions of Contract on Reverse Side of the Air Waybill) IATA Secretariat has now made the corresponding editorial change to Resolution 600b as attached with the effective date 28 December 2019. Carriers are cautioned to take all necessary and appropriate advisory action, particularly if using air waybill stock reflecting the prior liability limit, to notify their shippers, cargo agents/forwarders, insurers, and claims departments of the increased liability limit from 19 SDR per kilo to 22 SDR per kilo for carriage of cargo governed by MC99 taking place on or after December 28, 2019.
A corresponding change is also being made to Resolution 600i and attached to this email.