Carrier liability and its limit under the CMR

When goods are damaged or lost in international road transport, the first question is: how much is the carrier liable for? In most cases the answer is in the CMR Convention. For the document itself see our article on the CMR consignment note; this one focuses on liability.

What is the carrier liable for?

Under the CMR, from the moment it takes over the goods until delivery, the carrier is liable for:

• Total or partial loss,
• Damage,
• Delay.

Liability does not depend on the carrier's own fault, so "I was careful" is not enough by itself. Instead the convention lists a limited number of situations in which the carrier can be relieved. The carrier is also liable for the acts and omissions of its agents and other people it uses (for example a subcontractor or the driver).

The limit of liability

Under Article 23, compensation for loss or damage is limited to 8.33 units of account per kilogram of gross weight of the goods short. The unit of account is the IMF Special Drawing Right (SDR). The amount is converted into national currency at the value on the date of judgment or on a date agreed by the parties. This figure comes from the 1978 Protocol, so check whether the country concerned is a party to it.

The logic is that the limit follows the weight of the goods lost or damaged; for light but valuable goods the limit may fall below the real value. In that case the sender can declare a value in the consignment note and pay a surcharge to raise the limit, and a special interest in delivery can also be declared. For delay, compensation is capped at the amount of the freight charges.

When liability falls away

The carrier can be relieved if it proves that the loss, damage or delay was caused by:

• The fault or instructions of the person entitled to the goods (sender or consignee),
• An inherent defect of the goods (for example perishability or natural wastage),
• Circumstances the carrier could not avoid and whose consequences it could not prevent.

Relief is also easier in certain special risk cases, such as carriage in an open, unsheeted vehicle expressly agreed in the note, defective packing, or loading and stowage done by the sender. If the sender loaded and the stowage was faulty, this matters; see load securing basics.

An important exception: in the case of the carrier's wilful misconduct, or default treated as equivalent to it, the limits and the relief provisions do not apply. This needs legal interpretation; consult a specialist.

Time limits

The time to bring a claim is limited; under the convention it is generally one year, and three years in cases of wilful misconduct. Start dates differ by situation, so check the official text.

CMR liability insurance

A carrier's CMR liability is rarely a risk it can cover from its own assets, so CMR liability insurance is common. It covers the carrier's CMR liability within the policy's scope and limits. When taking out a policy, check:

1. Is the limit enough for the typical value of the cargo?
2. What are the exclusions (for example driver negligence, theft, certain cargo types)?
3. The countries and transport types it covers.
4. Claim notification conditions and deadlines.

A shipper can ask the carrier for a copy of the policy and its validity period. It is an important step in choosing a reliable carrier. Separate cargo insurance protects the value above the CMR limit.

On Order And Load

In the driver app, the signed CMR and the delivery photo go straight onto the order, which shortens disputes over damage and shortages. For what to do when damage occurs, see damage claims and reservations. Convention and policy rules can change, so this is not legal advice; consult your contract and a specialist.