Short answer
The carrier’s liability is not unlimited. In the carriage of goods by sea, the carrier is not held liable for damages exceeding 666.67 SDR per package/unit or 2 SDR per gross kilogram of the damaged goods; the two calculations are made separately and the higher one applies (Turkish Commercial Code art. 1186/1).
The ceiling is not a payment, but an upper limit. If the actual damage is below the ceiling, the actual damage is awarded. The date on which the SDR will be converted to Turkish Lira varies from regime to regime: in maritime transport, the actual payment date, in domestic road transport, the delivery date, and in CMR and Montreal, the judgment date. This single difference can double or halve the compensation.
Limited liability is not absolute: if the damage was caused intentionally or recklessly, the carrier cannot benefit from the ceiling (Turkish Commercial Code art. 1187). However, the situation is the opposite in air cargo transport — there, the limit does not disappear even in cases of gross negligence.
Table of Contents
- Why doesn’t the carrier pay the full amount of the damage?
- Which limit applies to which type of transport?
- How is the ceiling calculated in maritime transport: 666.67 SDR or 2 SDR?
- Where and when is the value of the goods for compensation determined?
- Is a container considered a single package, or is each package inside counted separately?
- How much does the carrier pay for delay: what is the 2.5 times freight limit?
- In which cases does limited liability completely cease to exist?
- Can the parties change the liability limit by contract?
- Can the shipowner make an overall limitation based on vessel tonnage? (LLMC)
- How are SDR regimes compared according to transport types?
- How do courts apply 8.33 SDR in road transport?
- Is the limit still 19 or 22 SDR in air transport?
- According to which date is the SDR rate calculated?
- Within how many days should you report damage?
- Within what period should you file a lawsuit?
- Which documents should be collected before opening the file?
- Frequently asked questions
- Why is it important to properly manage the process in these files?
Why doesn’t the carrier pay the full amount of the damage?
When cargo is damaged and the invoice amount is presented, the initial expectation of those involved with the cargo is for the full amount of the damage to be covered. Transport law does not operate this way. The liability of the carrier or transporter arising from the loss, damage, or delay of goods is generally not in the nature of unlimited compensation liability, but is subject to ceiling limits based on the principle of Special Drawing Rights (SDR), as per national and international legislative provisions.
Supreme Court 11th Civil Chamber, 29.11.2016, E. 2015/11896, K. 2016/9213: “According to the aforementioned articles, the carrier’s liability is not unlimited”; the fundamental approach is framed by the rule: “Accordingly, the fundamental principle in […] is that the carrier’s liability is limited so as not to exceed the actual damage, and if the actual damage incurred exceeds the limited liability amount specified in the aforementioned articles, the carrier shall be liable up to the limited liability amount.”
Supreme Court 11th Civil Chamber, 16.02.2016, E. 2015/4339, K. 2016/1537: “There is no unlimited liability in cargo transportation.”
Two conclusions can be drawn from this. Firstly, the ceiling is not a payment amount, but an upper limit; if the actual damage is below the ceiling, the actual damage is awarded. Secondly, the ceiling itself is a calculable figure and must be calculated before filing a lawsuit — otherwise, a fee would be paid for an amount that will not be paid.
Which limit applies to which type of carriage?
The general regime for contracts of carriage of goods and the maritime transport regime contain significant differences in terms of unit of account, ceiling limits, and currency conversion dates.
- General law of carriage of goods (road): Pursuant to Article 882 of the Turkish Commercial Code No. 6102, a limit of 8.33 SDR per kilogram of the gross weight of the consignment is taken as a basis.
- Maritime law of carriage of goods (freight contracts): A dual limit system is stipulated under Article 1186 of the TCC — 666.67 SDR per package/unit or 2 SDR per kilogram of gross weight.
- Global (overall) limitation in maritime trade: By reference to articles 1328 and 1329 of the TCC, the provisions of the 1976 International Convention on Limitation of Liability for Maritime Claims (LLMC) and its 1996 Amending Protocol, even in disputes without a foreign element, allow for an overall limitation of liability based on ship tonnage.
The regulation of Article 1186 of the TCC regarding maritime transport is structured in parallel with the liability limits of the Hague/Visby Rules in international practice; therefore, it offers a familiar framework even in cases involving foreign elements.
How is the limit calculated in maritime transport: 666.67 SDR or 2 SDR?
In the transport of goods by sea, the carrier’s limits of liability, the valuation of goods, and currency conversion are specifically regulated in Article 1186 of the TCC. The first paragraph of the article reads as follows:
“The carrier shall not be liable for loss or damage to goods or for any loss or damage related to the goods, in any event, provided that the higher limit is applied, for an amount exceeding 666.67 Special Drawing Rights per package or unit, or for an amount exceeding two Special Drawing Rights per kilogram of the gross weight of the goods lost or damaged; unless the nature and value of the goods have been declared by the shipper before shipment and inserted in the bill of lading. The Special Drawing Right shall be converted into Turkish Lira at the value determined by the Central Bank of the Republic of Turkey on the actual payment date or on another date agreed upon by the parties.”
The calculation proceeds in four steps:
- Package/unit calculation: the number of lost or damaged packages/units is multiplied by 666.67 SDR.
- Weight calculation: the gross (brut) weight (kg) of the goods that suffered loss or damage is multiplied by 2 SDR.
- Applicable upper limit: two calculations are compared; the limit that yields the higher amount is accepted as the liability cap. According to legislation, the amount in favor of the claimant is taken as a basis.
- Currency conversion: The SDR rate, unlike the delivery date in general carriage, is converted to Turkish Lira according to CBRT data on the actual payment date (or the date agreed by the parties).
The practical result is this: the kilogram calculation is higher for heavy and few packages, while the package calculation is higher for light and many packages. It is not possible to determine the file’s value without performing both calculations.
Did your cargo turn out to be damaged, is the carrier claiming limited liability?
The cap calculation, bill of lading records, and notification periods determine the outcome of the case. Let’s evaluate your documents together.
Where and when is the value of goods for compensation determined?
Pursuant to the second paragraph of Article 1186 of the Turkish Commercial Code:
“The total compensation to be paid by the carrier is calculated according to the value of the goods at the place and date they were unloaded or should have been unloaded from the ship, in accordance with the freight contract. The value of the goods is determined by the stock exchange price or, if there is no such price, by the current market price, or in the absence of both, by the ordinary value of goods of the same nature and quality.”
Accordingly, in the dispute, the actual loss at the place and date of unloading is first determined. If the amount of actual loss remains below the legal limit, the actual loss amount is awarded; if it exceeds the limit, the amount of limited liability stated in the first paragraph of Article 1186 is awarded. The invoice value alone is not determinative; the sequence of stock exchange price, current market price, and ordinary value is followed.
Is a container considered a single package, or is each package inside it counted separately?
This is the technical point that most affects the amount of compensation in maritime cases. The third paragraph of Article 1186 of the TCC (Turkish Commercial Code) states:
“If goods are consolidated in a container, pallet, or similar transport unit, each package or unit recorded as the content of the said transport unit in the sea waybill shall be considered a separate package or unit. Otherwise, such a transport unit shall be considered a single package or unit. If the transport unit itself suffers loss or damage, it shall be considered a separate package, unless it belongs to the carrier or was provided by them.”
So, if the number of packages (pallets, cartons, etc.) inside the container is individually shown on the bill of lading, each carton is considered an independent unit, and the 666.67 SDR calculation is based on the number of cartons. If the content is not explicitly stated, the entire container is considered a single unit and limited to 666.67 SDR. In a container carrying 500 cartons, this distinction changes the ceiling from 666.67 SDR to 333,335 SDR.
Therefore, printing “1 x 40′ container with 500 cartons” instead of “1 x 40′ container” on the bill of lading during the loading phase is an advantage that no subsequent legal action can compensate for.
How much does the carrier pay for delay: what is the 2.5 times freight limit?
According to paragraphs 6 and 7 of Article 1186 of the Turkish Commercial Code (TCC):
“The carrier’s liability arising from exceeding the transport period is limited to two and a half times the freight payable for the delayed goods; provided that this amount cannot exceed the total freight amount payable according to the freight contract.” “In cases where the first and sixth paragraphs are applied together, the carrier’s total liability cannot exceed the amount that would be payable under the first paragraph for total loss of the goods.”
Commercial loss due to delay is often many times greater than the freight; nevertheless, the ceiling is linked to the freight and cannot exceed the total freight. If the goods are also damaged or lost due to delay, the limits for loss/damage come into play, and the total liability cannot exceed the amount for total loss.
Under what circumstances is limited liability completely removed?
Declaration of value and untrue declaration
Limited liability does not apply if the nature and value of the goods are explicitly declared by the consignor on the bill of lading. However, pursuant to the fifth paragraph of Article 1186 of the TCC:
“If the consignor has intentionally misrepresented the nature or value of the goods, the carrier shall in no case be liable for any loss of or damage to the goods.”
This provision is sharp on both sides: a correct declaration lifts the ceiling, while an intentional misrepresentation removes the entire liability.
Intent or Reckless Conduct
Pursuant to paragraphs 1 and 2 of Article 1187 of the TCC:
“The carrier cannot benefit from the limits of liability stipulated in Article 1186, if it is proven that the damage or delay in delivery was caused by an act or omission committed with intent or reckless conduct and with the awareness of the likelihood of such damage or delay occurring.” “The carrier’s employees, whose act or omission is proven to have caused the damage or delay in delivery with intent or reckless conduct and with awareness of the likelihood of such damage or delay occurring, also cannot benefit from the limits of liability stipulated in Article 1186, based on the provision of the second paragraph of Article 1190.”
In practice, this threshold is high. As will be seen below, courts uphold limited liability in cases of simple negligence or fault; they require concrete evidence for claims of intent and recklessness. Furthermore, pursuant to Article 1190 of the TCC, provisions for exemption and limitation of liability also apply in lawsuits filed against the carrier based on tort — meaning filing a lawsuit as a tort is not a way to exceed the cap.
Can parties modify the liability limit by contract?
Yes, upwards. Pursuant to the eighth paragraph of Article 1186 of the TCC, parties may increase their liability limits by including a clause in the contract of carriage; in this case, the value agreed upon by the parties becomes the liability limit. In practice, it is also observed that the carrier completely waives the limit:
Istanbul Regional Court of Appeals 14th Civil Chamber, 19.10.2022, E. 2022/1635, K. 2022/1344: The Chamber first stated that “pursuant to Article 882/1(b) of the TCC, it was concluded that only the weight of the damaged goods should be taken as the basis for determining the upper limit of liability” and calculated that “according to Article 882/1 of the TCC, since the liability per kg is 8.33 Special Drawing Rights, the defendant … company’s upper limit of liability is 400,673 SDR”; however, in the concrete dispute, it deemed the waiver valid with the finding that “In the specific case, the carrier waived its right to limited liability in the contract of carriage concluded between the parties, and this provision of the contract is valid.”
This decision shows that the contract text is as important as the ceiling (limit). For high-value shipments, a declaration of value in return for additional freight or a waiver of the limit completely changes the value of the case.
Can the shipowner make a global limitation based on ship tonnage? (LLMC)
In maritime law, in addition to per-package limitation, there is also the possibility of global limitation based on ship tonnage. Pursuant to the first paragraph of Article 1328 of the TCC:
“Liability arising from maritime claims may be limited according to the International Convention on Limitation of Liability for Maritime Claims of 19 November 1976, published in the Official Gazette dated 4/6/1980 and numbered 17007, and the Protocol of 2/5/1996 which amended this Convention, or international conventions prepared to replace it and accepted by the Republic of Turkey.”
In accordance with Article 1329 of the same Law, this provision also applies to disputes that do not involve a foreign element:
“Article 1328 also applies in cases that do not involve a foreign element within the meaning of the first paragraph of Article 1 of the International Private and Procedural Law No. 5718, dated 27/11/2007.”
Limits raised in 2015 — do not calculate with the old table
The liability limits of the 1996 Protocol were increased by approximately 51% by the IMO Legal Committee’s decision of 2012 (Resolution LEG.5(99)), and the new limits entered into force on 8 June 2015. The current structure is as follows:
| Type of claim | Vessels up to 2,000 GT | Additional tonnage bands |
|---|---|---|
| Death and personal injury | 3.02 million SDR (previously: 2 million SDR) | 1,208 SDR per ton for 2,001–30,000 tons · 906 SDR for 30,001–70,000 tons · 604 SDR for over 70,000 tons |
| Other claims (damage to goods/property, delay, pollution, etc.) | 1.51 million SDR (previously: 1 million SDR) | 604 SDR per ton for 2,001–30,000 tons · 453 SDR for 30,001–70,000 tons · 302 SDR for over 70,000 tons |
The maritime administration also announced this change and stated that the insurance (P&I) for maritime claims of vessels calling at or departing from port facilities within Turkish maritime jurisdiction must comply with the new limits. A fund calculation made with the old tonnage schedule is now incorrect.
An example from practice
Istanbul Regional Court of Appeals 12th Civil Chamber, 12.11.2025, E. 2025/1642, K. 2025/1831: As a result of the fire on the ship, the defendant’s counsel argued that the liability was “limited to the amount to be calculated in accordance with Article 6, Paragraph 1, sub-paragraph b) of the 1976 London Convention, and that this amount was limited to 3,907,800.- Accounting Units (Special Drawing Rights – SDR)” and that “if calculated at the Special Drawing Rights exchange rate as of the date of the incident, the upper limit of compensation to be paid by his client’s company for all damages arising from the burning of all vehicles and cargo on the ship, including the damage claimed by the plaintiff’s counsel, was 1 SDR = 1.8761 YTL, 3,907,800.- SDR x 1.8761 = 7,331,423.58- YTL”; furthermore, he claimed that “in accordance with the per-package liability rule in Article 19 on the back of the bill of lading concerning the carriage, the carrier’s liability per unit or package was limited to 100-TL (old unit)”.
The court ruled for the dismissal of the case on the grounds that “since it was determined in the final judgment regarding the same fire incident that there was no ‘fault on the part of the shipowner’, and since there was no evidence in the file to reach an exceptional conclusion in the concrete case, there was no error in the decision to dismiss the case”.
The decision is instructive in showing that proving fault is more decisive than fund limitation in major maritime accidents.
How are SDR regimes compared according to transport types?
| Type of transport | Basic legal basis | Applied SDR upper limit | Date for SDR rate determination | Exclusion from limitation |
|---|---|---|---|---|
| Sea transport | Turkish Commercial Code No. 6102, Art. 1186, 1187 | 666.67 SDR per package or 2 SDR per gross kg (whichever is higher) | Actual payment date (or date agreed by the parties) | Damage caused by intentional or reckless conduct (TCC Art. 1187) |
| Road (domestic) | Turkish Commercial Code No. 6102, Art. 882, 886 | 8.33 SDR per kg of gross weight | Date the goods were handed over to the carrier (or agreed date) | Damage caused by intentional or reckless conduct (TCC Art. 886) |
| Road (international) | CMR Convention Art. 23, 29 | 8.33 SDR per kg of missing gross weight | Rate on the date of the decision (or agreed date) | Fault equivalent to intentional or malicious act (CMR Art. 29) |
| Air transport (cargo) | Montreal Convention Art. 22 | 26 SDR per gross kg (effective from 28.12.2024; previously 19 and 22 SDR) | Rate on the date of the decision | Limited liability in cargo transport is absolute; it cannot be lifted even in case of gross negligence |
The four rows in the table represent four separate calculations. The sea leg and road leg of the same shipment are subject to different limits; in multimodal transport, determining the stage at which the damage occurred directly determines the compensation.
How do courts apply 8.33 SDR in road transport?
Domestic transport (TCC Art. 882 and 886)
Istanbul 10th Commercial Court, 04.06.2024, File No. 2022/614, Decision No. 2024/429: It was emphasized that “the carrier’s liability is limited to 8.33 SDR for each kg of the consignment’s gross weight, and that the SDR is the Turkish Lira equivalent determined by the Central Bank on the date the goods were delivered to the carrier for carriage or on another date agreed upon by the parties”; additionally, a calculation was made, including the transport fee, based on the principle that “When the carrier is held liable to pay compensation for the total or partial loss or damage of the goods, this compensation shall be calculated according to the value of the goods at the place and time they were taken over for carriage,” stating that “the liability limit /SDR Amount: 96,600 TL and 12.88 TL according to TCC Article 883 (1), making a total of 109.48 TL.” Since there was no willful misconduct, it was concluded that “there was no room for full compensation application according to TCC Article 886.”
Antalya Regional Court of Justice, 11th Civil Chamber, 16.09.2025, M. 2022/1036, D. 2025/743: “According to Article 882 of the Turkish Commercial Code (TCC), the compensation to be paid under Articles 880 and 881 is limited to an amount equivalent to 8.33 Special Drawing Rights (SDR) for each kilogram of the consignment’s gross weight” the rule was reiterated; “Although the general rule is that the carrier has limited liability for loss and damage; pursuant to Article 886 of the TCC, a carrier proven to have caused the damage intentionally or recklessly and with the awareness of the likelihood of such damage occurring, or persons specified in Article 879 of the TCC, cannot benefit from the limitations of liability” the principle was emphasized.
Istanbul Regional Court of Justice, 14th Civil Chamber, 24.10.2024, M. 2021/1428, D. 2024/1498: “According to Article 882 of the TCC, the carrier’s liability is 8.33 SDR per kilogram, and since the SDR exchange rate should be taken as the rate closest to the date of the judgment, our Chamber decided based on the exchange rate on the examination date, and thus, on 23.10.2024, 1 SDR was determined as 45.4959 TL, resulting in (1008.33×45.4959=37,898.08 TL)” it was stated; subsequently “This amount determined is not the amount of liability, but rather the carrier’s maximum limit of liability. The defendant is liable for the portion of the actual damage corresponding to their fault, without exceeding this limit” with this assessment, the nature of the upper limit was established.
Istanbul Regional Court of Justice, 43rd Civil Chamber, 20.11.2023, M. 2020/1807, D. 2023/1233: In the decision, with the 8.33 SDR limit, “The Special Drawing Right shall be converted to Turkish Lira according to the value determined by the Central Bank of the Republic of Turkey on the date the goods were delivered to the carrier for the purpose of carriage, or on another date agreed upon by the parties” the provision was confirmed; regarding the lifting of the limit, TCC Article 886 was relied upon.
Istanbul Anatolian 11th Commercial Court, 09.05.2025, File No. 2024/39, Decision No. 2025/414: “it is observed that the carrier’s liability in damaged deliveries is limited to the amount equivalent to 8.33 Special Drawing Rights per kilogram of the gross weight corresponding to the damaged part” and “the lower of the value of the loss or damage incurred by the goods and the amount resulting from the application of 8.33 SDR per kilogram shall be valid as the limit of liability” principles have been summarized.
Istanbul 8th Commercial Court, 26.03.2025, File No. 2023/224, Decision No. 2025/212: It was stated “that the Carrier has limited liability for package packaging according to Article 882 of the Turkish Commercial Code (TCC)”, and the case was partially accepted; it was concluded that there was no room for full compensation as “no evidence, document, information, or act indicating that the 3 heavily damaged packages of the relevant cargo subject to compensation were intentionally and recklessly damaged could be found.”/>
Istanbul Regional Court of Justice 13th Civil Chamber, 02.05.2025, File No. 2022/1952, Decision No. 2025/721: It was stated that “unlike the Turkish Commercial Code (TCC) no. 6102 and TCC no. 6762, the carrier’s liability has been limited in parallel with international agreements”, and that the compensation “is limited to the amount corresponding to 8.33 Special Drawing Rights (SDR) for each kilogram of the unnetted weight (gross weight) of the entire goods or the part that lost its value.”/>
International CMR transports
Istanbul Anatolian 4th Commercial Court, 10.10.2024, File No. 2022/518, Decision No. 2024/742: It was stated “that the upper limit of limited liability pursuant to CMR art. 23/3 was calculated as 470.01 kg x 8.33 SDR = 3,915.18 SDR”, and it was emphasized “that the defendant carrier’s liability cannot exceed 8.33 units of account per kilogram of the gross weight of the damaged goods as specified in Article 23 of the CMR.”/>
Bakırköy 7th Commercial Court, 11.02.2025, E. 2024/448, K. 2025/137: It was stated that the dispute should primarily be resolved by the provisions of the CMR, and in the present case, “Article 29 of the CMR Convention is not applicable to the defendant carrier company, and the defendant carrier may benefit from the principle of ‘carrier’s limited liability’,” and it was determined that “the upper limit of liability is 13,328.00 SDR” according to CMR Article 23/7, based on the exchange rate on the date of the decision.
Court of Cassation, 11th Civil Chamber, 20.03.2017, E. 2016/908, K. 2017/1652: “Pursuant to Article 23 of the CMR Convention, when the carrier is held liable to pay compensation for the partial or total loss of the goods, this compensation shall be calculated according to the value of the goods at the place and time they were accepted for carriage”; in determining the value, the stock exchange price, the prevailing market price, and the equivalent market rate shall be followed in that order. “However, the carrier’s liability shall not exceed 8.33 units of account per kilogram of gross weight lost.”
Court of Cassation, 11th Civil Chamber, decision dated 29.11.2016: Exceptions to limited liability are listed as “the declaration of a value exceeding the limit in the consignment note for a certain fee, and cases where the damage, as regulated in Article 29, arises from the carrier’s misconduct or fault deemed equivalent to willful misconduct.”
Istanbul 15th Commercial Court, 26.06.2024, E. 2023/178, K. 2024/378: “the damaged material was stated as 3.01 kg, the liability limit would be 3.01 kg x 8.33 SDR/kg = 25.0733 SDR, and by calculating 25.0733 SDR x 43.2433 SDR/TRY (24.06.2024 – date closest to the decision date – CBRT SDR/TRY exchange rate) = 1,084.25 TL,” the case was partially accepted.
Is the limit still 19 or 22 SDR in air transport?
Attention: Cargo limit 26 SDR from December 28, 2024
The five-year review mechanism under Article 24 of the Montreal Convention has been activated, the inflation factor was determined as 17.9% in ICAO’s 2024 review, and the limits have been raised effective December 28, 2024. The limit under Article 22, paragraph 3, regarding cargo has been increased from 22 SDR to 26 SDR per kilogram. The limit for passenger death/bodily injury is 151,880 SDR, passenger delay is 6,303 SDR, and baggage is 1,519 SDR.
Therefore, calculations made based on 19 or 22 SDR in files related to transports after 28.12.2024 are incomplete. The following decisions should be read considering their dates: each decision applied the limit in force on its own date of carriage.
Bakırköy 5th Civil Court of First Instance, 21.11.2022, E. 2022/175, K. 2022/1101: It was stated that “Pursuant to Montreal Convention Article 22/3, if no special interest in delivery is declared for cargo, the carrier’s liability for carriage of baggage and cargo is limited to 22 SDR per gross kg of lost or damaged goods” and “While the carrier’s liability is for the actual amount of damage, the amount of liability is limited to the sum specified in Article 22 of the convention”; furthermore, it was assessed that “Limited liability cannot become unlimited in terms of baggage or cargo carriage”.
Istanbul Regional Court of Justice 12th Civil Chamber, 27.10.2022, E. 2020/201, K. 2022/1498: It was emphasized that, according to Article 22 of the Convention, if no special declaration is made, liability is “limited to an amount of 19 Special Drawing Rights per kilogram as of the date of damage”; and in cases where a declaration is made, the carrier would be “liable to pay an amount not exceeding the declared sum”.
Istanbul 7th Commercial Court, 22.10.2025, E. 2020/772, K. 2025/765: Stating that “the carrier’s liability is limited to the amount obtained by multiplying 22 SDR per kilogram of the gross weight of the transported goods”, the calculation “224.5 Kg x 22 = 4,939 SDR” was made; with the finding that “According to the Central Bank exchange rate closest to the decision date, 1 SDR = 1.363 USD”, the upper limit was determined as 6,736.59 USD, and since the damage exceeded this ceiling, a ruling limited to the said limit was made.
Istanbul 4th Commercial Court, 23.12.2025, E. 2024/464, K. 2025/931: By making the finding that “Article 22, paragraph 5 of the Convention regulates in which cases the carrier cannot benefit from limited liability, and although it is regulated that limited liability may be waived for baggage and cargo loaders, it is regulated that limited liability shall be applied absolutely in cargo transportation”, liability was limited to “the equivalent of 396 SDR in EURO (18 kg x 22 SDR = 396 SDR)”.
Istanbul 20th Commercial Court, 24.05.2023, E. 2022/480, K. 2023/419: Under the Montreal regime, the defense was adopted that “it is not possible to lift the limited liability, and that the carrier’s limited liability cannot be lifted even in cases where the carrier is gravely negligent”; by accepting that the carrier was not gravely negligent but under “fault liability”, the compensation amount was determined as 79.90 SDR.
Istanbul Regional Court of Justice 43rd Civil Chamber, 31.10.2024, E. 2021/987, K. 2024/1581 and 06.11.2025, E. 2022/541, K. 2025/1598: In both decisions, the 19 SDR limit was confirmed, and limited liability was applied, stating that “even if the loss or damage to the goods subject to cargo carriage is caused by the intentional or reckless acts of the defendant carrier or its agents, this situation does not prevent the carrier from benefiting from limited liability according to the provisions of the Convention” (In the second decision, reference was made to the ruling of the Supreme Court 11th Civil Chamber dated 13.03.2014, E. 2012/14200, K. 2014/4905).
Istanbul Regional Court of Justice 43rd Civil Chamber, 28.11.2024, E. 2021/1679, K. 2024/1741: In addition to the cargo limit, the weight basis has also been clarified: “According to Article 22/4 of the contract, in case of destruction, loss, or delay of a part of the cargo or any of its contents, the weight to be taken into account in determining the limited liability amount of the carrier shall be only the weight of the relevant package or packages.” Regarding the exchange rate, despite the rule of the decision date, the calculation made based on the damage date exchange rate was upheld, considering the appellant’s status.
Istanbul Regional Court of Justice 14th Civil Chamber, 19.02.2026, E. 2022/1447, K. 2026/284: It was stated that “the carrier’s liability under the Convention is generally limited liability. However, in cases where the sender declares a special interest for the goods subject to carriage and pays an additional fee if necessary, the carrier shall be liable for the actual damage,” and accordingly, the determination of the weight for calculation as 155 kg was deemed appropriate.
Istanbul 14th Civil Court of First Instance, 28.01.2026, E. 2023/748, K. 2026/79: The freight forwarder’s role was explained, stating that “the responsibility is assumed by forwarders during the period from the receipt of the product from the sender to its delivery to the consignee”; the calculation was made as “27.25 x 22 = 599.5 SDR” and 821.35 USD was determined. Since the net weight of the damaged product could not be determined, one package was considered completely damaged as per Montreal Article 22/4.
Which date is used to calculate the SDR exchange rate?
The same damage, the same ceiling, a different exchange rate date — and the result changes completely. Summary:
- Maritime (TCC Art. 1186/1): CBRT exchange rate on the actual payment date (or the date agreed upon by the parties). The delivery date principle applicable to road transport is not valid for maritime transport.
- Domestic road transport (TCC Art. 882/4): The date the goods were delivered to the carrier.
- CMR (Art. 23/7): converted into the national currency of the state where the court is located, at the current exchange rate on the date of the decision or the date agreed upon by the parties.
- Montreal (Art. 23): The exchange rate on the date of the decision.
Considering the loss of value of the Turkish Lira, this distinction is not academic. In a lengthy maritime case, the “actual payment date” rule creates a significant advantage for the claimant; whereas in a road transport case, the low exchange rate ceiling on the delivery date pushes it down. Therefore, the claim in the petition must be established in SDR and with the exchange rate date clearly specified.
Is the SDR ceiling or the actual damage lower?
Let’s calculate the ceiling limit and the exchange rate date together for sea, road, and air transport files; see the true value of the file from the start.
Within how many days should you report the damage?
This is the step before the ceiling calculation. Failure to report within the period does not always negate the right to compensation, but it shifts the burden of proof to the benefit of the one carrying it and seriously weakens the file.
| Regime | Externally visible damage | Hidden (not externally visible) damage | Delay | Sanction |
|---|---|---|---|---|
| Maritime — TCC Art. 1185 | Written notification at the latest during delivery | 3 consecutive days from delivery | — | A presumption arises that the goods were delivered as per the bill of lading and that the damage resulted from a cause for which the carrier is not responsible (can be disproven otherwise) |
| Road — TCC Art. 889 | At the latest at the time of delivery | 7 days from delivery | 21 days from the date of delivery | Shift of the burden of proof |
| CMR Art. 30 | At the time of delivery | 7 days | 21 days | Presumption and difficulty of proof |
| Montreal Art. 31 | — | 14 days | 21 days | Loss of the right to claim if notification is not made within the period |
According to TCC Art. 1185/2, if the examination of the goods has been carried out by the court, competent authority, or officially appointed experts with the participation of the parties, no additional notification is required. In practice, the most reliable way is to proceed with a delivery report with a reservation at the time of delivery and a simultaneous expert invitation.
How long do you have to file a lawsuit?
- Maritime: Claims advanced against the carrier are generally subject to a one-year statute of limitations. The period begins on the date of delivery of the goods, or in case of total loss, the date they should have been delivered.
- Road (Turkish Commercial Code art. 855): generally one year; three years if the damage was caused intentionally or recklessly and with awareness of the likelihood of damage occurring.
- CMR (art. 32): one year; three years in case of intent or fault equivalent to intent.
- Montreal (art. 35): a two-year preclusion period; this period is not interrupted or suspended like a statute of limitations.
Since the calculation of the period may vary according to the file and transport documents, the start date and the applicable regime must be re-confirmed for each file.
Which documents should be collected before opening a file?
- Bill of lading / CMR document / air waybill — especially whether the number of packages inside the container is specified
- Commercial invoice, packing list, and gross/net weight breakdown (the limit calculation cannot be made without these)
- Delivery record, reservation note, container interchange report, and seal records
- Expert / survey report and photos; determination made with the participation of the parties, if possible
- Transport contract and terms on the reverse side of the bill of lading — is there a waiver of limit or declaration of value?
- Freight invoice (mandatory in delay cases as the limit depends on the freight)
- Insurance policy and subrogation documents, if any
- Correspondence: date and recipient of the damage notification
Frequently asked questions
The carrier says, “my liability is limited to SDR.” Does it make sense to file a lawsuit?
Most of the time, yes. The ceiling is an upper limit; if your actual damage is below the ceiling, the full amount of damage will be awarded. Furthermore, if the contents of the container are declared in the bill of lading, if the weight calculation exceeds the package calculation, or if the carrier has waived the limit, it can significantly raise the ceiling.
Is the SDR calculation also performed for actual damages that fall below the ceiling?
The calculation is performed, but it doesn’t change the outcome. The court first determines the actual damage at the place and date of unloading; if this amount is below the ceiling, the actual damage is awarded. The ceiling only comes into play when the damage exceeds it.
What happens if the number of packages in the container is not stated in the bill of lading?
According to Article 1186/3 of the Turkish Commercial Code (TCC), the entire container is considered a single package or unit. In this case, the package calculation remains at 666.67 SDR, and usually, the kilogram calculation (2 SDR/kg) turns out to be higher. Whichever calculation is higher is applied.
If I file a lawsuit based on tort, will I be exempt from limited liability?
No. According to Article 1190 of the Turkish Commercial Code (TCC), provisions regarding exemption from liability and limitation of liability also apply to claims made against the carrier based on tort due to loss, damage, or late delivery of goods.
Does the carrier’s gross negligence remove the limit?
In maritime and road transport, the criterion is not gross negligence, but intent or reckless conduct (TCC Art. 1187 and Art. 886; CMR Art. 29). In air cargo transport, however, the limit is absolute: it is accepted in court decisions that limited liability cannot be lifted even in cases of gross negligence.
Has the limit in air transport really become 26 SDR?
Yes. As a result of ICAO’s five-year review, the cargo limit has been increased from 22 SDR to 26 SDR per kilogram starting from December 28, 2024. For shipments before this date, 19 or 22 SDR, whichever was in effect during the relevant period, applies.
My delay damage is many times the freight. Can I get the full amount?
No, not in sea carriage. The carrier’s liability for delay is limited to two and a half times the freight payable for the delayed goods, and this amount cannot exceed the total freight. If the goods are also damaged or lost due to delay, the loss/damage limits apply.
If I make a declaration of value, will the freight increase, is it worth it?
If the nature and value of the goods are declared before loading and entered into the bill of lading, limited liability does not apply. For high-value and low-weight cargo (electronics, spare parts, medicine), the cost of declaration is usually small compared to the difference between the cap and the actual damage. However, a knowingly false declaration completely eliminates the carrier’s liability according to Turkish Commercial Code (TTK) Article 1186/5.
There was a fire on board, the shipowner established a fund. What will happen to my claim?
The shipowner may opt for a global limitation based on ship tonnage under the LLMC and its 1996 Protocol, with reference to Turkish Commercial Code (TTK) Articles 1328 and 1329; in this case, creditors receive a proportional share from the fund. Limits have been increased by approximately 51% since June 8, 2015. Proof of fault is decisive in these cases.
Which regime applies in multimodal transport?
As a rule, the regime applicable to the stage where the damage occurred applies. If it cannot be determined at which stage the damage occurred, the contract provisions and transport documents become decisive. Therefore, stage-based delivery records and container interchange reports are critically important.
Why is it important to properly manage the process in these files?
Shipping compensation files rely on accurate calculation before legal argument. A few technical choices made in the same event completely change the outcome:
- Which regime will be applied (TCC Art. 882, Art. 1186, CMR, or Montreal) changes the ceiling between 8.33 SDR and 666.67 SDR.
- Whether the container content is written on the bill of lading or not can differentiate the ceiling by hundreds of times.
- Incorrect selection of the exchange rate date turns even a correctly calculated ceiling into an insufficient claim.
- Missing the notification period shifts the burden of proof in favor of the carrier.
- Statutes of limitations and preclusion periods vary from regime to regime; the two-year period in Montreal neither stops nor is interrupted.
- If the claim of intent/recklessness is not supported by concrete evidence, the ceiling is preserved; basing the petition on this claim is a risky choice.
- Failure to establish the claim amount in SDR and with the correct exchange rate, or to take procedural measures such as reserving rights regarding the excess, leads to a loss of rights.
Regions where these disputes are concentrated in and around Istanbul
Cargo damage and transportation compensation files are handled in Istanbul’s port, shipyard, and logistics areas. On the Anatolian side, shipyards, warehouses, and logistics facilities along the Tuzla, Pendik, Kartal, Maltepe, Sultanbeyli, and Beykoz route; on the European side, the Ambarlı area along with Avcılar, Beylikdüzü, Küçükçekmece, Zeytinburnu, Bakırköy, and Başakşehir route; additionally, regarding air cargo, the areas around Arnavutköy (Istanbul Airport) and Pendik (Sabiha Gökçen) stand out. On the Kocaeli side, the ports of Gebze, Dilovası, Çayırova, Darıca, and Körfez, along with organized industrial zones, constitute a significant portion of these files.
The type of dispute also varies by region: while in container terminals, the number of packages and bill of lading records are disputed, in bulk and project cargo, the unloading method and handling errors; and in air cargo, the temperature chain and number of packages come to the fore. In all three types, the determining factor is the accurate documentation of damage detection at the time of delivery.
2M Law Firm
Founder: Atty. Meryem Günay. Our firm operates in the fields of maritime trade and transport law, ship arrest and maritime enforcement, commercial disputes, urban transformation and condominium law, foreign law, and administrative jurisdiction. We handle cases in the commercial courts of first instance on both the Anatolian and European sides of Istanbul, as well as in the Kocaeli region.
Address: Postane Quarter, Seher Street No: 18/2, Tuzla / Istanbul
Phone: 0505 390 25 48 | Email: info\\@2mhukuk.com
Resources and legislation
- Turkish Commercial Code No. 6102 — art. 855, 879, 880-883, 886, 889, 1185, 1186, 1187, 1190, 1328, 1329 (mevzuat.gov.tr)
- International Convention on Limitation of Liability for Maritime Claims (LLMC) of 1976 and Protocol of 2/5/1996; 2012 amendments to the Protocol (IMO Legal Committee, Resolution LEG.5(99)), effective June 8, 2015
- CMR — Convention on the Contract for the International Carriage of Goods by Road, art. 23, 29, 30, 32
- Montreal Convention of 1999, art. 22, 23, 24, 31, 35; revised limits according to ICAO 2024 review (effective December 28, 2024)
- Law No. 5718 on International Private Law and Procedure, art. 1
This article has been prepared for general informational purposes only and does not constitute legal opinion or advice. Each case should be evaluated based on its own documents and evidence. For the current texts of the judicial decisions mentioned in the article, it is recommended to obtain confirmation from UYAP and official decision databases.
