Customary Freight Unit

Summary of Customary Freight Unit

As used within the context of the Carriage of Goods by Sea Act, the unit upon which freight is assessed on bulk or unpackaged cargoes. The act provided that a carrier's liability for loss or damage to cargo shall be limited (in the 1980s) to $500 per package, or “other customary freight unit.”Where cargo is not in packages, the customary freight unit may be the shipping ton or another customary standard recognized in the trade.

(Main Author: William J. Miller)