Episode

The Single Rule That Made Global Air Cargo Trade Possible

Podcast
Global Trade with Fexingo: WTO, Free Trade Agreements, and International Commerce
Published
Jul 9, 2026
Duration seconds
655
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not_requested
Canonical source
https://audio.fexingo.com/business/global-trade/episode-0100.mp3
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https://audio.fexingo.com/business/global-trade/episode-0100.mp3
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Summary

In this 100th episode of Global Trade with Fexingo, Lucas and Luna explore the one rule that made global air cargo trade possible: the 1929 Warsaw Convention and its 1999 Montreal Protocol update. They explain how this framework created a uniform liability regime for international air transport, setting a cap of roughly $23 per kilogram for lost or damaged cargo. The hosts trace how this single legal standard gave insurers, banks, and logistics firms the predictability needed to finance and insure high-value, time-sensitive shipments across borders. They discuss the convention's origins in the early days of commercial aviation, the 1966 increase to $75,000 per passenger, and the shift to Special Drawing Rights under the Montreal Protocol. Lucas and Luna also examine how the rules affect e-commerce today, where a package worth $50 gets the same liability treatment as a $50,000 shipment. The episode closes with a look at whether the framework is outdated for modern supply chains. #WarsawConvention #MontrealProtocol #AirCargo #InternationalTrade #Liability #AviationLaw #SupplyChain #Ecommerce #Shipping #Freight #Logistics #WTO #TradeRules #Insurance #SpecialDrawingRights #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo