Where the shipper fails to declare the value of the shipment on a clean bill of lading and the carrier has knowledge of the true value and does not advise the shipper to declare the value so,in the U.S.the carrier's liability will be unlimited liability per package.

Question

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In the U.S., under the Carriage of Goods by Sea Act (COGSA), the carrier's liability is limited to $500 per package unless the shipper declares a higher value and pays a higher freight rate based on that declared value. The carrier's knowledge of the true value does not automatically lead to unlimited liability.

Where the Shipper Fails to Declare the Value of the Shipment