2026 Snapshot: Has U.S. COGSA Package Limitation Been Reframed?

Highlights

• Under the Carriage of Goods by Sea Act (COGSA), ocean carriers' liability is capped at $500 per "package," but the statute doesn't define the term, leading to dramatically different liability outcomes depending on whether courts count individual cartons or palletized groupings.
• A March 2026 federal appeals court ruling in New York allowed a carrier to define "package" as the pallet rather than individual cartons, but a follow-up case showed courts will still look at the facts – such as why the goods were palletized – meaning where a case is filed and what evidence is presented can make all the difference.
• This Holland & Knight alert explains the current state of the law in key circuits and identifies the practical considerations that shippers, carriers and cargo interests should address in structuring maritime transactions and resolving disputes.