The Fourth Circuit Court of Appeals recently held that the Carriage of Goods at Sea Act ("COGSA"), 46 U.S.C. 30701, means what it says when it caps carrier liability at $500 per package.
In Maersk Lines v. USA, the United States government arranged to ship aircraft cargo loaders from Charleston to Oman. Maersk shipped the loaders, but they were damaged during the voyage. At issue in the litigation was the $500 liability cap "per package" in COGSA. This law caps liability of a carrier unless the shipper contracts a higher cap or declares the value of the cargo. In this case, the United States did not so contract nor did it declare the value of the cargo. The Fourth Circuit held that it Maersk's liability was thus, capped at $500 per package.