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| Thursday, 22 October 2009 |
| Increase of Limitation of Liability on MAWB under Montreal Convention (MC 99) |
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As from January 1, 2010, the limitation of liability that applies to all air cargo shipments consigned where the Montreal Convention 1999 (MC 99) applies, will increase from the current 17 'Special Drawing Rights' (SDR) per kilo, to 19 SDR per kilo. As Australia is a signatory to the MC '99 Convention, where the country of origin and destination are both signatories to this convention, the new higher limit will apply. If origin or destination has not signed MC 99', existing limitations will apply (see below) ** IATA has advised its members to continue to use the current effective Conditions of Contract ( 'the Conditions' ) until a new Cargo Services Conference (CSC) Resolution 600b (AWB Conditions) comes into effect. Consequently you may continue to use existing neutral AWB stock beyond January 2010, as applicable conventions take precedence over the Conditions and consequently it will not preclude courts applying the new liability limit irrespective of the relevant text of such Conditions appearing on the reverse of the MAWB. Nevertheless, we continue to urge you to manage your neutral AWB stock prudently in anticipation of the coming into effect of the new resolution 600b, probably sometime in the first half of 2010. In addition we would draw your attention to the fact that you might need to review your own standard trading conditions and the limits of liability therein. Also we recommend that you also advise your liability insurers of this change in liability limits. Some, we know, are already aware of this change ** For clarity, please note that the convention liability limits vary according to the applicable regime. As from January 1, 2010 these limits will be:
Please do not hesitate to contact us should you require further clarification in this matter. Kind regards Brian Lovell |