SDR Liability Calculator
Special Drawing Rights (SDRs) act as an international reserve asset and are a key benchmark in calculating liability for lost or damaged air cargo.
What Are SDRs – And Why Should You Care?
SDRs are not a currency, but they matter a lot in global trade. Created by the International Monetary Fund (IMF), SDRs are based on a basket of major currencies—USD, EUR, GBP, JPY, and CNY—giving them a globally balanced and stable value. In air freight, they're used to calculate compensation when things go wrong.
Who Uses SDR Calculations?
- Freight Forwarders & Logistics ProvidersTo determine exact liability caps when moving cargo.
- Airlines & Cargo HandlersTo process loss claims efficiently and legally.
- Shippers & ConsigneesTo know their exact monetary rights if goods are lost or damaged.
- Insurance CompaniesTo properly evaluate underwriter coverage and claims payouts.
Montreal vs. Warsaw Convention
Two primary global conventions define international air freight liability limits. It is crucial to determine which convention governs your shipment route.
Montreal Convention (1999)
The modern global standard adopted by 135+ countries. It enforces strict liability where there is no absolute need to prove carrier fault for damages. Compensation is capped at 22 SDR/KG.
Warsaw Convention (1929)
An older legal framework still strictly governing routes between nations that have not ratified Montreal. Claims under Warsaw typically demand proving airline negligence.
Why Do These Matter?
These conventions protect the interests of all parties and ensure smoother claims handling. They create a fair, standardized system across borders—so cargo owners, airlines, and insurers universally understand their rights and responsibilities.
Calculate SDR Compensation
When cargo is lost or damaged, compensation liability is calculated using the simple formula: Cargo Weight (KG) × SDR Rate.
1. Cargo Information
2. Select Framework Rate
3. Target Currency
* These rates are updated using the latest available data. If in doubt, you can double-check current rates on www.xe.com.
Compensation Estimate
Enter cargo weight to begin
Navigate Freight Liability
Want help calculating specific SDR values or understanding exactly which legal framework applies to your shipment? Reach out to our logistics compliance experts today.