Valuation Charges

What are Valuation Charges?

Valuation charges are additional fees a shipper pays to declare a higher value for a shipment, which increases the carrier’s maximum liability if the cargo is lost or damaged. Because carrier liability is often limited by default, declaring a higher value can help bring potential compensation closer to the shipment’s true worth, and the valuation charges reflect the extra exposure the carrier takes on.

These charges are most relevant for higher-value or damage-sensitive cargo, or when the route and handling profile increases exposure (for example, multiple handovers or longer dwell time). For lower-value shipments, standard liability may be sufficient depending on risk tolerance and customer commitments.

How are Valuation Charges Calculated?

Carriers calculate valuation charges using a fixed rate or percentage applied to the value declared above the standard liability limit. For example, if the default limit is $100 and the shipment is declared at $1,000, the charge would apply to the $900 excess. Methods vary by carrier and may also depend on commodity type, so it’s worth confirming the exact basis before shipping.