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Redefining package limitation in the U.S.

Published on 2026/05/19

Maritime Legal Update – May 2026

Redefining package limitation in the U.S. – COGSA, bill of lading drafting and cargo risk allocation

(prepared by Marek Czernis & Co. Law Office)

Firm note – cargo claims and maritime disputes

The Law Office actively advises shipowners, carriers, NVOCCs and cargo interests on: cargo liability and claims, bill of lading interpretation, limitation of liability regimes.

1. Introduction

COGSA allows carriers to limit liability to USD 500 per package but does not define “package”.

2. Traditional approach

Courts historically: rejected containers as packages, focused on smaller units listed in the B/L.

3. New trend

Recent cases confirm contractual definition of “package” is enforceable including pallet-based definitions.

4. Economic impact

Liability may be reduced to: approx. USD 10,000 per container, regardless of cargo value.

5. Limitation of liability – explanation

Limitation of liability: caps exposure, ensures predictability, supports marine insurance systems.

6. Contractual implications

The B/L becomes the primary tool for: risk allocation, liability limitation, dispute management.

7. Conclusion

The shift represents a major change in cargo liability economics.

The Law Office continues to support clients in navigating these developments.

Final note – our publications

Further insights:

https://czernis.pl
https://www.linkedin.com/company/czernis

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