Aviation Anthology Vol 1 2026 - Digital Version - Flipbook - Page 34
O An uptick in claims? Whilst smart ULDs might
streamline claims handling and increase the number
of claims that can be successfully defended, they
could also lead to an increase in the number of
(successful) claims. Article 18 of the Montreal
Convention 1999 (“MC99”), which provides a
framework for international air carrier liability,
imposes a strict liability regime on carriers for cargo
loss or damage caused by an “event” during the
carriage by air; Article 19 extends the carrier’s liability
to damage caused by delay in the carriage.
Last year, the High Court of England and Wales,
by judicial interpretation, expanded the meaning
of a qualifying “event” under Article 18 in a case
concerning a shipment of asparagus and its exposure
to excessive temperatures during carriage by air (see
our article on the decision in this anthology at page
10).[2]
This decision fosters broader carrier exposure under
Article 18. Twinned with the fact that data collected
by smart ULDs are likely to be discoverable in
proceedings potential claimants now have a lower
Article 18 liability hurdle and, by reason of smart ULD
data, better evidence to prove a qualifying “event”
which caused the damage or loss of the cargo.
O Shifting the blame. The data collected from smart
ULDs could provide carriers with the opportunity to
shift legal liability to another handler in the cargo
chain, such as road carriers, ground handlers or
warehousing providers, but only if the recorded
data show that the cargo was mishandled whilst in
the custody of that party (subject to any contractual
terms that exist between the carrier and the third
party handler). With data from smart ULDs, liability
for damage can be established more coherently and
so there is greater scope for targeted subrogated
claims against responsible third parties in the cargo
handling chain.
What it all means
Carriers adopting smart ULDs should be cognisant of
the risks in order to take advantage of the legal, financial
and operational benefits. This may involve reviewing
their insurance or revisiting the terms of liability with
their third party handlers to ensure they are fully
protected if there is a qualifying “event” under Article 18
of MC99.
[1] IATA, ‘Unit Load Devices (ULD)’
; IATA, < https://www.iata.
org/en/publications/manuals/uld-regulations/>
[2] Wealmoor Limited v KLM Royal Dutch Airlines [2025] EWHC 1706
(Comm), [2026] 1 W.L.R. 261
34
DAC Beachcroft
Aviation Anthology 2026 - Volume I
