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.