The CMR Convention: Its Role in Freight Transport and Insurance
By Athanasios Sakaroglou, Director of SAKAROGLOU A. & CO KG – MALETSCHEK & PARTNER HELLAS
International freight transport is one of the key pillars of the global economy. When it comes to road transport, the CMR Convention serves as the foundation ensuring smooth operations, clear terms, and responsibility among all involved parties.
The CMR Convention (Convention relative au contrat de transport international de marchandises par route) applies to international road freight transport and provides a common framework regulating the rights, obligations, and liabilities of the carrier, sender, and recipient. One of its most important roles is to ensure the carrier’s liability for loss, damage, or delay of goods during transport.
Carrier Liability
The Convention states that the carrier is responsible from the moment the cargo is received until its final delivery. If loss or damage occurs during transport, the carrier’s liability is subject to specific compensation limits. Specifically:
- The carrier’s liability is calculated at 33 SDR (Special Drawing Rights) per kilogram of gross weight of the cargo.
- The SDR is an international currency determined by the International Monetary Fund (IMF), with its value fluctuating daily. At present, it is approximately €10.00 per kilogram.
The CMR Waybill
The CMR waybill, which accompanies the goods, is also a crucial document. It serves as proof of the transport contract and includes essential information such as:
- The nature of the cargo.
- The sender and recipient.
- The place of pickup and final destination.
- Any special transport conditions.
Proper completion of the CMR waybill is critical, as it provides evidence in case of disputes and can be used as legal proof in court.
The Importance of Insurance
The carrier’s liability is limited within the legal frameworks governing transport (e.g., CMR, Maritime Law, Air Transport Law). Given that the CMR compensation limits may not cover the actual value of the goods, full cargo value coverage often necessitates additional insurance, such as cargo insurance.
At SAKAROGLOU A. & CO KG – MALETSCHEK & PARTNER HELLAS, we understand the complexities of international transport and the necessity of risk protection. That is why we offer specialized insurance programs that align with the CMR Convention’s requirements, providing our clients with security and protection against potential risks.
Conclusion
The CMR Convention is a prime example of how international regulations enhance the efficiency of the supply chain. However, understanding its liability limitations and securing proper insurance coverage are crucial for all involved parties. As global transport grows increasingly complex, awareness and correct application of the CMR Convention are vital for the success of logistics operations.
Our conclusions and assessments in this article are made with impartiality and objectivity. They do not constitute binding positions or recommendations but are solely intended to provide accurate and reliable information.