Carrier liability under CMR, cargo insurance and damage claims
In international road freight the carrier is liable for loss of and damage to goods under the CMR Convention, but only up to 8.33 SDR (Special Drawing Rights) per kilogram of gross weight missing or damaged. For light, valuable goods compensation therefore covers only a fraction of their value, and separate cargo insurance is worth having. Damage must be recorded as a reservation on the CMR consignment note at delivery, and hidden damage notified in writing within 7 days.
What the carrier is liable for under CMR
The CMR Convention applies to international carriage of goods by road for reward between countries at least one of which is a contracting state – so to every import from Spain, Portugal, France and Italy. The carrier is liable for loss and damage from the moment it takes over the goods until delivery, and for delay. It is relieved of liability where, for example, the damage was caused by defective packing, loading carried out by the sender, the nature of the goods, or circumstances it could not avoid.
How much the carrier pays: 8.33 SDR per kilogram
Compensation is based on the value of the goods but may not exceed 8.33 SDR for each kilogram of gross weight missing or damaged. The SDR is a unit of account of the International Monetary Fund; depending on the exchange rate, the limit works out at roughly ten euros per kilogram. In a total loss, the carriage charges are also refunded.
| Example (indicative) | Weight | Value of goods | CMR limit |
|---|---|---|---|
| Pallet of tiles | 1,000 kg | low per kg | usually covers the whole loss |
| Pallet of cosmetics | 300 kg | high per kg | covers only part of the value |
| Pallet of electronics | 200 kg | very high per kg | covers a small fraction |
A higher limit can be agreed by declaring a higher value or a special interest in delivery on the consignment note, against a surcharge agreed with the carrier. For delay, the carrier pays no more than the carriage charges. The limit does not apply where the carrier caused the damage through wilful misconduct or equivalent default.
When cargo insurance is worth it
A carrier’s liability insurance covers only what the carrier actually owes under CMR. Cargo insurance covers the value of the goods under the policy terms – including cases where the carrier is not liable. It pays off when:
- the goods are high-value per kilogram (electronics, cosmetics, pharmaceuticals, branded goods),
- fragile goods are travelling by groupage with several transhipments,
- you import regularly and a single loss would hurt.
You can arrange cover with your own insurer for a single shipment or as an annual policy. Let us know in advance so you can give the insurer the route and shipment details.
How to make a claim, step by step
- Before you sign the CMR, count the pallets and inspect the packaging with the driver present.
- Write a specific reservation on the CMR – how many items are missing, what is damaged and how. “Received subject to inspection” with no detail is not enough. Have the driver countersign it.
- Take photos of the damaged goods, packaging, load space and number plate.
- Don’t refuse the delivery without good reason, and keep damaged items and packaging for inspection.
- Hidden damage that couldn’t be seen at delivery must be notified in writing within 7 days of delivery; Sundays and public holidays don’t count.
- Delay must be claimed in writing within 21 days of the goods being placed at your disposal.
- Send the evidence – the CMR with the reservation, photos, the invoice showing the goods’ value, and your calculation of the loss.
Claims arising from CMR carriage are normally time-barred after one year, or three years in cases of wilful misconduct. If a forwarder organised the shipment, report the damage to them – they will pursue it with the carrier and help you with the paperwork.
Questions to ask the carrier
- Do you hold valid carrier’s liability insurance, and with what limit?
- What does it exclude – theft, unattended parking, certain types of goods?
- Who do I report damage to, and in what form?
How to prevent damage at the loading stage is covered in preparing goods for collection. What to ask when choosing a carrier is summed up in how to choose a carrier.