Special Drawing Right
The IMF unit that carriage conventions state their liability limits in.
Definition
An international reserve asset created by the International Monetary Fund, whose value is set daily from a basket of major currencies. Carriage conventions express their liability caps in SDR rather than in any national currency so that the limits do not erode with a single currency's inflation or move with exchange rates. Conversion for a claim is normally made at the rate on the date of the judgment or of the agreed settlement, depending on the convention and the forum.
Why it decides money
Any site quoting a convention limit in dollars is quoting a snapshot. The SDR is revalued every business day; the limit is the SDR figure, not its conversion.
Related terms
- Carrier liability
- What the carrier owes by treaty — capped, usually by weight, never by value.
More in carriage and documents
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