Cargo Liability Coverage in Mexico

While shipments are moving in Mexico they are generally subject to the terms and conditions of Mexican Railroad Service Regulations and / or the KCSM Rules Publication. Article 52 of Mexican Railroad Service Regulations and Section 11.4 of KCSM Rules Publication states that while in Mexico, shipments are subject to a maximum limit of liability as defined in Article 52 of the Mexican Rail Road Service Regulations unless a higher value is declared and a premium paid prior to shipment. Unless a higher value is declared and a premium paid, all shipments are subject to a limitation of liability equal to 15 days average minimum wages in Mexico, D.F. per metric ton. This means that the carrier’s liability is limited to approximately $934 pesos or approximately $72 USD per metric ton.

If a shipper wishes to obtain additional coverage for their shipments in excess of Article 52 limited liability, they must contact KCS or KCSM prior to shipment and fill out a simple form declaring a higher value. The charge for additional coverage is determined by KCSM according to the commodity type, routing and an assessment of the risk and historical costs associated. Declarations of higher value must be submitted 5 (five) business days prior to shipment. The Declaration of Value form should be submitted to KCSM Freight Claims at freightclaims@kcsouthern.com.mx

The KCSM Rules Publication is available at www.kcsouthern.com. If you have more questions about coverage in Mexico, please contact your KCSM Sales Representative or KCSM Freight Claims.