What is Declared Value?
Declared Value is the value a shipper declares to the carrier at the time of shipment, for the purpose of increasing the carrier’s maximum liability limit in the event of loss or damage during transportation.
Declared Value only raises the carrier’s liability limit — it isn’t insurance.
Even when a declared value is entered, the carrier will only compensate for loss or damage within the scope of its own proven liability and remains subject to its exclusions and limitations, such as improper packaging, prohibited items, natural events, or inherent product defects.
To protect against broader risks—such as theft, natural damage, or loss not caused by the carrier’s negligence—shippers should consider purchasing cargo insurance, rather than relying solely on Declared Value.
When the Declared Value is ≤ $100 (Default Liability)
Whether you declare $0, $50, or $100, the maximum carrier liability is $100, with no additional fee.
When the Declared Value is > $100
To increase liability above $100, the shipper may declare a higher value. The carrier will apply a Declared Value surcharge based on its rate structure.
Example:
- Declared Value = $500 (Carrier: UPS)
- Default coverage: $100
- Additional declared portion: $500 − $100 = $400
- UPS Declared Value rate example: $1.50 per additional $100
- Surcharge = ($400 ÷ 100) × $1.50 = $6.00
Final result:
- Liability limit: up to $500
- Surcharge payable: $6.00
FedEx (Canada) – Declared Value Surcharge Information
FedEx applies a surcharge for shipments with a Declared Value exceeding the default coverage. The typical fee range in Canada is:
Approximately CAD $3.75 – $3.95 per additional CAD $100 (or fraction thereof), depending on the specific service level.
UPS (Canada) – Declared Value Surcharge Information
UPS applies an additional surcharge for any portion of the Declared Value that exceeds CAD $100. A commonly referenced historical rate is:
Approximately CAD $3.60 per additional CAD $100 (or fraction thereof).
https://www.ups.com/assets/resources/media/en_US/2022_UPS_Air_Freight_Accessorials.pdf
Canpar – Declared Value Surcharge Information
Canpar applies a Declared Value surcharge for shipments exceeding the default liability limit. A commonly referenced example rate is:
Approximately CAD $4.00 per additional CAD $100 (or fraction thereof).
https://www.canpar.com/download/documents/Canpar_Terms_of_Service_EN.pdf?utm
GLS (Canada) – Declared Value Surcharge Information
GLS Canada charges a percentage-based Declared Value fee rather than a fixed amount per $100. Public documentation indicates:
The Declared Value surcharge is approximately 4.25% of the declared amount.
