Under Hague-Visby Rules, what is the standard liability limit per kilogram and per package?

• A. 3 SDR per kilogram or 666.67 SDR per package, whichever is higher.
• B. 2 SDR per kilogram or 666.67 SDR per package, whichever is higher.
• C. 2 SDR per kilogram or 500 SDR per package, whichever is higher.
• D. 5 SDR per kilogram or 1000 SDR per package.

Answer: (B)

Under Hague-Visby Rules, the carrier’s liability for loss or damage is capped by two figures and you apply the higher one. The weight-based limit is 2 SDR for each kilogram of gross weight, and the package-based limit is 666.67 SDR per package. The rule is to take whichever amount is higher, so the standard limit is the greater of 2 × the package’s weight in kilograms or 666.67 SDR per package. For a light package the fixed 666.67 SDR per package applies, while for a heavy package the 2 SDR per kilogram limit can exceed 666.67 SDR. For example, a 100 kg package would have a maximum of 666.67 SDR, whereas a 400 kg package would have a maximum of 800 SDR. The amounts are expressed in SDR, a currency unit used in international trade.