🌍 Rated 4.7 stars on Google 🌍 94% customer satisfaction rate 🌍 96% on-time deliveries 🌍 Serving 190+ countries worldwide 🌍 Over 5000 tonnes moved annually 🌍 10+ Experts here to help you
SDR Calculator
What Are SDRs – And Why Should You Care in AirCargo?
Special Drawing Rights (SDRs) are not a currency, but they matter a lot in global trade. Created by the International Monetary Fund (IMF), SDRs act as an international reserve asset and are a key benchmark in calculating liability for lost or damaged air cargo.
SDRs are based on a basket of major currencies—USD, EUR, GBP, JPY, and CNY—giving them a globally balanced and stable value. In air freight, they’re used to calculate compensation when things go wrong.
How Do You Calculate SDR Compensation in Air Freight?
-
When cargo is lost or damaged, compensation is calculated using a simple formula:
Liability (in SDR) = Cargo Weight (KG) × SDR Rate
There are two global standards:
⦁ Warsaw Convention – 8.33 SDR per KG (older, limited adoption)
⦁ Montreal Convention – 22 SDR per KG (modern and widely accepted)
Once you have the SDR total, convert it into your local currency using the current exchange rate published by the IMF or central banks.
Example :
⦁ Cargo weight : 100 KG
⦁ Montreal SDR rate : 22 SDR/KG
⦁ Total liability : 100 × 22 = 2,200 SDR
Let’s say 1 SDR = 1.2255 EUR:
Compensation = 2,200 × 1.2255 = €2,696.10 -
Who Uses SDR Calculations?
⦁ Freight Forwarders & Logistics Providers : To determine liability when moving cargo.
⦁ Airlines & Cargo Handlers : To process claims efficiently.
⦁ Shippers & Consignees : To know their rights if goods are lost or damaged.
⦁ Insurance Companies : To evaluate coverage and claims payouts.
Montreal vs. Warsaw Convention – What’s the Difference?
⦁ Warsaw Convention (1929) :
⦁ Compensation : 8.33 SDR/KG
⦁ Claim must prove airline negligence
⦁ Still in effect in a few countries
⦁ Montreal Convention (1999) :
⦁ Compensation : 22 SDR/KG
⦁ Strict liability – no need to prove fault
⦁ Adopted by 135+ countries
⦁ The global standard for most air cargo today
Why Do These Conventions Matter?
They create a fair, standardized system across borders—so cargo owners, airlines, and insurers all understand their rights and responsibilities. Whether you're a freight forwarder, shipper, or insurance provider, knowing how SDRs work protects your interests and ensures smoother claims handling.
Want help calculating SDR values or understanding what applies to your shipment? Reach out to our logistics compliance experts today.
SDR Calculator
These rates are updated using the latest available data. If in doubt, you can double-check current rates on www.xe.com.
Ready to Grow Your Business?
Get a free quote today and let us help you move forward. Whether you're ready to start or just have questions — we're here for you.