The Convention on the Contract for the International Carriage of Goods by Road (CMR), signed in Geneva in 1956, governs most international truck shipments in Europe, and its parties also include a number of countries in Central Asia, the Middle East and North Africa (check the UN Treaty Collection list for your route). If you ship by road between two countries, there is a good chance CMR decides what the trucker owes you.
When CMR applies
CMR applies to "every contract for the carriage of goods by road in vehicles for reward" where the place of taking over and the place designated for delivery "are situated in two different countries, of which at least one is a Contracting country", regardless of the parties' nationality (Art. 1(1)). Key points:
- Only one country needs to be a party. A truck from a CMR country to a non-CMR country is covered.
- Exclusions: postal carriage, funeral consignments and furniture removal (Art. 1(4)).
- Ro-ro and piggyback: if the loaded trailer goes part of the way by sea, rail, inland waterway or air without the goods being unloaded, CMR still applies to the whole carriage, unless the loss is proved to have been caused by an event that could only occur on the other mode (Art. 2).
- UK-Ireland traffic is excluded by the Protocol of Signature.
- Not domestic: purely domestic transport is governed by national law (several countries have adopted CMR-like rules domestically, but that is outside the Convention).
- Cannot be contracted out of: any stipulation which would directly or indirectly derogate from the Convention is null and void (Art. 41).
Note that US-Canada and US-Mexico road shipments are not CMR: neither the US nor Canada is a party. Those moves usually fall under Carmack; see Carmack and released rates.
The consignment note (CMR note)
The contract is confirmed by a consignment note, but its "absence, irregularity or loss" does not affect the existence or validity of the contract, which remains subject to CMR (Art. 4). The note is made out in three originals: one for the sender, one travelling with the goods, one kept by the carrier (Art. 5). It records, among other things, the number of packages, gross weight, and, where applicable, a declared value and special interest in delivery (Art. 6).
When taking over the goods, the carrier must check the number of packages and their apparent condition and enter reservations if it cannot (Art. 8). With no specific reservations, it is presumed that the goods and packaging appeared in good condition and that the count matched (Art. 9(2)). That presumption is valuable to you, so make sure the note is completed accurately at loading.
Liability and defences
The carrier is liable for total or partial loss, damage and delay between taking over and delivery (Art. 17(1)). It is also responsible for its agents, servants and subcontractors (Art. 3), and cannot blame a defective vehicle (Art. 17(3)). It is relieved if the loss was caused by:
- the claimant's wrongful act or neglect or instructions, inherent vice of the goods, or "circumstances which the carrier could not avoid and the consequences of which he was unable to prevent" (Art. 17(2)); or
- one of the "special risks" in Art. 17(4): agreed use of open unsheeted vehicles; lack of or defective packing; handling, loading or stowage by the sender or consignee; goods naturally prone to loss or damage; insufficient marks; livestock.
The carrier must prove the Art. 17(2) causes (Art. 18(1)). For the special risks, it only has to show the loss could be attributed to one; it is then presumed, but the claimant may prove otherwise (Art. 18(2)). Theft from an unattended parked truck is often argued under the "unavoidable circumstances" defence; courts in different countries apply it strictly and differently. outcome depends on national case law
How much: the 8.33 SDR/kg limit
Compensation for loss is calculated on the value of the goods "at the place and time at which they were accepted for carriage" (Art. 23(1)), capped at 8.33 SDR per kilogram of gross weight short (Art. 23(3) as amended by the 1978 Protocol). The original text used 25 gold francs; the Protocol replaced it with SDR and provides that the amount is converted into national currency "on the date of the judgment or the date agreed upon by the Parties" (Art. 23(7)). In addition:
- carriage charges, customs duties and other charges are refunded in full on total loss, and proportionately on partial loss (Art. 23(4));
- delay compensation is capped at the carriage charges (Art. 23(5));
- damage is compensated by the reduction in value, capped at what total loss of the affected part would give (Art. 25);
- interest runs at 5% per year from the written claim (Art. 27).
Higher compensation is possible only by declaring a value (Art. 24) or a special interest in delivery (Art. 26). See declared value. Example: 2,000 kg of goods worth €50,000 lost: limit 16,660 SDR, about €20,080 at today's rate, leaving a gap of nearly €30,000. See it in the calculator.
Breaking the limit: wilful misconduct
The carrier cannot rely on the exclusions or limits, or on the burden-of-proof rules, if the damage was caused by its "wilful misconduct or by such default on his part as, in accordance with the law of the court or tribunal seized of the case, is considered as equivalent to wilful misconduct" (Art. 29). The same applies to misconduct by its drivers and subcontractors. Because "equivalent default" depends on national law, the threshold differs between countries. This is one reason where you sue can matter (jurisdiction rules are in Art. 31).
Deadlines
- Apparent loss or damage: reservations not later than delivery (Art. 30(1)).
- Non-apparent loss or damage: written reservations within 7 days of delivery, Sundays and public holidays excepted (Art. 30(1)).
- Delay: written reservation within 21 days from when the goods were placed at the consignee's disposal; otherwise no compensation for delay (Art. 30(3)).
- Goods treated as lost: if not delivered within 30 days after the agreed time-limit, or 60 days from taking over if none was agreed (Art. 20(1)).
- Time bar: 1 year; 3 years for wilful misconduct (Art. 32(1)). A written claim suspends the period until the carrier rejects it in writing and returns the documents (Art. 32(2)).
Successive carriers and subcontracting
Where one contract is performed by successive road carriers, each becomes a party by accepting the goods and consignment note (Art. 34). You may sue the first carrier, the last carrier, or the carrier performing the leg on which the loss occurred (Art. 36).
Practical tips for shippers
- Insist on a properly completed CMR note with an accurate package count and weight.
- For high-value loads, agree security measures (no unattended parking, secure parking) in writing, and insure the goods; theft claims are often contested.
- Diary the 7-day and 21-day notice periods and the 1-year time bar, and send a written claim early to suspend the period.
- Remember forwarders who contract as carriers are bound by CMR too.