The CMR Convention applies automatically to every contract for the carriage of goods by road for reward where the place of taking over and the place of delivery are in two different countries, at least one of which is a party to the Convention. The parties cannot contract out of it to the detriment of the cargo interest, and the carrier’s liability is in principle limited to 8.33 special drawing rights (SDR) per kilogram of gross weight.
That limit only falls away in the case of wilful misconduct or an equivalent default, or if a higher value was declared in advance. Claims must be brought within one year, so deadlines matter as much as liability. Below we explain when the CMR applies, what the consignment note does, when the carrier is liable and how to handle a claim.
What is the CMR Convention?
The CMR is the Convention on the Contract for the International Carriage of Goods by Road (Convention relative au Contrat de transport international de Marchandises par Route). It sets uniform rules on the consignment note, the carrier’s liability, compensation and time limits for cross-border road transport.
The Convention was drawn up under the United Nations Economic Commission for Europe (UNECE) and signed in Geneva on 19 May 1956. It entered into force in 1961. Almost all European countries are parties, as are a number of countries in Central Asia and the Middle East. The Netherlands is a party, and Dutch courts apply the CMR directly in international road transport cases.
When does the CMR apply?
Under Article 1 CMR, the Convention applies to every contract for the carriage of goods by road in vehicles for reward, when the place of taking over and the place designated for delivery are in two different countries and at least one of them is a party. The nationality and place of business of the parties are irrelevant.
This means a transport from the Netherlands to a country that has not joined the CMR is still covered, because the Netherlands is a party. A purely domestic transport within the Netherlands is not covered; it falls under Book 8 of the Dutch Civil Code (Burgerlijk Wetboek, BW), which has its own, lower liability limit, and is often subject to general conditions such as the AVC.
Article 1(4) CMR excludes three types of carriage: carriage under international postal conventions, funeral consignments and furniture removals.
What if the goods also travel by sea, rail or inland waterway?
If the loaded vehicle itself is carried over part of the journey by another mode, for example on a ferry, without the goods being unloaded, the CMR applies to the whole carriage under Article 2 CMR. The exception is loss or damage that was caused by an event that could only occur during the other mode of transport and not by an act or omission of the road carrier. In that case the rules of that other mode determine the liability.
Where the goods are unloaded and reloaded, for example in a container that is transferred to a ship, the position is more complex. Which regime applies then depends on the contract and on where the damage occurred.
What does the CMR consignment note do?
The consignment note (vrachtbrief) is evidence of the contract of carriage, of its conditions and of the receipt of the goods by the carrier. Its absence or irregularity does not affect the validity of the contract (Article 4 CMR), but it makes proof much harder.
Under Article 5 CMR the consignment note is made out in three original copies, signed by the sender and the carrier. The first copy goes to the sender, the second travels with the goods to the consignee, and the carrier keeps the third. Article 6 CMR lists what it must state, including the date and place, the names and addresses of sender, carrier and consignee, the place and date of taking over and the place of delivery, the usual description of the goods, the number of packages and their marks, and the gross weight or other quantity.
The sender is responsible for costs and damage caused by inaccurate or incomplete particulars (Article 7 CMR). On taking over the goods, the carrier must check the number of packages and their marks and the apparent condition of the goods and their packaging (Article 8 CMR). If the carrier has no reasonable means of checking, or finds a problem, it must enter a reasoned reservation on the consignment note. Without reservations, the consignment note is presumed to show that the goods and their packaging were in apparent good condition when the carrier took them over (Article 9 CMR).
An electronic consignment note (e-CMR) is possible under the 2008 Additional Protocol, provided the countries involved are parties to that protocol. The Netherlands is one of them.
When is the carrier liable?
The carrier is liable for total or partial loss of the goods, for damage to them between the moment it takes them over and the moment of delivery, and for delay in delivery (Article 17(1) CMR). The carrier can only escape liability on the grounds the Convention itself allows.
Under Article 17(2) CMR the carrier is not liable if the loss, damage or delay was caused by the wrongful act or neglect of the claimant, by instructions of the claimant, by inherent vice of the goods, or by circumstances which the carrier could not avoid and the consequences of which it was unable to prevent. That last ground is interpreted strictly. A carrier who parks a loaded trailer on an unguarded lay-by and is then robbed will rarely succeed with it.
The carrier cannot rely on defects in the vehicle it uses, or on the fault of the person from whom it hired the vehicle (Article 17(3) CMR). A leaking trailer cover, for example, remains the carrier’s risk.
Which special risks relieve the carrier?
Article 17(4) CMR lists special risks, such as the use of open unsheeted vehicles where this was expressly agreed, defective or missing packing, loading or stowage by the sender or consignee, the nature of certain goods, insufficient marks and the carriage of livestock. If the carrier shows that the damage could have resulted from one of these risks, it is presumed to have done so (Article 18(2) CMR). The claimant can then still prove that the damage was in fact caused by something else.
How much compensation can you claim?
Compensation for loss is based on the value of the goods at the place and time at which the carrier took them over, and is capped at 8.33 SDR per kilogram of gross weight short (Article 23 CMR). For damage, the carrier pays the amount by which the goods have lost value, up to the same cap (Article 25 CMR).
On top of that, the carriage charges, customs duties and other charges incurred in respect of the carriage are refunded: in full in the case of total loss, and in proportion in the case of partial loss (Article 23(4) CMR). Other consequential loss, such as lost profit or production downtime, is not recoverable within the CMR system. For delay, the carrier pays proven damage up to at most the carriage charges (Article 23(5) CMR).
The SDR is a unit of account of the International Monetary Fund. Its value in euros changes daily, and the conversion is made at the rate on the date of the judgment or the date agreed by the parties. For high-value goods with a low weight, such as electronics or pharmaceuticals, the cap is often far below the actual loss. The sender can raise it by declaring a higher value in the consignment note against a surcharge (Article 24 CMR) or by declaring a special interest in delivery (Article 26 CMR). In practice, cargo insurance is the more common solution.
The claimant is also entitled to interest at five per cent a year from the date on which the claim was sent to the carrier in writing (Article 27 CMR).
When does the limit fall away?
The carrier cannot rely on the liability limit, or on the other provisions that exclude or limit its liability, if the damage was caused by its wilful misconduct or by a default that the law of the court hearing the case treats as equivalent (Article 29 CMR). The same applies to the carrier’s employees and subcontractors.
Under Dutch case law, the equivalent default is conscious recklessness (bewuste roekeloosheid): the carrier knew of the risk of damage, realised that the risk was considerably more likely to materialise than not, and still took it. Ordinary or even gross negligence is not enough. Dutch courts rarely accept this, so a cargo interest should not build its claim on breaking the limit.
How quickly must you report damage or delay?
Record visible loss or damage on delivery, and report hidden damage in writing within seven days, not counting Sundays and public holidays. A claim for delay must be made in writing within 21 days of the goods being placed at the consignee’s disposal.
For loss and damage, the consequence of a late reservation under Article 30 CMR is limited: the consignee is presumed to have received the goods in the condition described in the consignment note, but may still prove otherwise. For delay the rule is strict: without a written reservation within 21 days, no compensation is payable at all. Record the damage carefully, with photographs, and where possible involve a surveyor before the goods are moved or repaired. If the carrier and consignee check the goods together, their joint findings can only be challenged for damage that was not apparent.
When does a CMR claim become time-barred?
Claims under the CMR are time-barred after one year, or three years in the case of wilful misconduct or an equivalent default (Article 32 CMR). The period runs from delivery for partial loss, damage or delay; for total loss, from the thirtieth day after the agreed delivery time or, if none was agreed, from the sixtieth day after the carrier took over the goods.
A written claim to the carrier suspends the limitation period until the carrier rejects the claim in writing and returns the documents that were attached to it. If the carrier accepts part of the claim, the period resumes only for the part still in dispute. Any other suspension or interruption is governed by the law of the court hearing the case. In practice, many claims are lost because the parties negotiate for months and nobody checks the clock. Where the carrier has rejected the claim, start proceedings or obtain a written extension in good time.
Where can you sue the carrier?
Under Article 31 CMR, you can sue in a court or tribunal of a contracting country agreed by the parties, and also in the country where the defendant is ordinarily resident or has its principal place of business or the branch through which the contract was made, or where the goods were taken over or were to be delivered. An arbitration clause is only valid if it provides that the tribunal will apply the CMR (Article 33 CMR).
Who is liable when the carrier uses subcontractors?
The carrier you contracted with remains liable towards you for the acts and omissions of its employees and of every other person whose services it uses, such as a subcontracted haulier (Article 3 CMR). You can therefore claim from your own contractual carrier and do not need to trace who actually drove the lorry.
Where one contract is performed by successive road carriers and each accepts the goods and the consignment note, each becomes a party to the contract under Article 34 CMR. The claim for loss, damage or delay can then be brought against the first carrier, the last carrier or the carrier who performed the part of the journey on which the damage occurred (Article 36 CMR). The carriers settle the recourse between themselves.
A freight forwarder (expediteur) is in a different position. A forwarder who only arranges the transport in its own name but on your behalf is not a carrier, and its liability is usually governed by forwarding conditions such as the FENEX conditions. Whether a party acted as carrier or as forwarder depends on what was agreed, not on what it calls itself.
How do carriers and shippers reduce their risks in practice?
Most CMR disputes are decided by documents and deadlines, not by the Convention itself. A few habits prevent most of them.
As a carrier, check the goods and the consignment note on loading and enter specific reservations when something is wrong or cannot be checked. Brief drivers on secure parking, particularly for theft-sensitive goods. Keep the CMR copies, delivery documents and any photographs for at least the limitation period, and inform your CMR liability insurer as soon as a claim is made. Also check the particulars given by the sender, because inaccurate weights or descriptions can shift liability.
As a sender or consignee, make sure the consignment note describes the goods, the number of packages and the weight accurately. For valuable goods, consider cargo insurance or a declaration of value. On delivery, inspect the goods before signing, enter visible damage on the consignment note and send written reservations for hidden damage within seven days. Send a written claim to the carrier as soon as the loss is known, so that the interest runs and the limitation period is suspended.
In summary
- The CMR applies to paid carriage of goods by road between two countries, at least one of which is a party, and cannot be set aside to the detriment of the cargo interest (Article 41 CMR).
- The carrier is liable for loss, damage and delay between taking over and delivery, unless one of the grounds in Article 17 CMR applies.
- Compensation is capped at 8.33 SDR per kilogram of gross weight, plus carriage charges and duties; the cap only falls away for wilful misconduct or conscious recklessness.
- Report hidden damage in writing within seven days (excluding Sundays and public holidays) and delay within 21 days.
- Claims are time-barred after one year, unless suspended by a written claim; the period is three years for wilful misconduct.
Frequently asked questions
What is the CMR Convention?
The CMR Convention is an international treaty on contracts for the carriage of goods by road between countries. It sets uniform rules on the consignment note, the carrier’s liability, compensation and time limits, and parties cannot deviate from it to the detriment of the cargo interest.
When does the CMR Convention apply?
The CMR applies to the carriage of goods by road for reward when the place of taking over and the place of delivery are in two different countries, at least one of which is a party. The nationality and place of business of the parties do not matter. Purely domestic Dutch transport falls under Book 8 of the Dutch Civil Code instead.
What is a CMR consignment note?
The CMR consignment note is the transport document that serves as evidence of the contract of carriage, its conditions and the receipt of the goods. It is made out in three original copies. Its absence does not invalidate the contract, but it makes proof considerably harder.
How is the carrier’s liability limited under the CMR?
Compensation for loss or damage is capped at 8.33 special drawing rights per kilogram of gross weight, plus a refund of carriage charges and customs duties. For delay, compensation is limited to the carriage charges. The cap does not apply in the case of wilful misconduct or, under Dutch law, conscious recklessness.
What is the time limit for CMR claims?
Claims are time-barred after one year, or three years in the case of wilful misconduct or an equivalent default (Article 32 CMR). Visible damage should be noted on delivery, hidden damage reported in writing within seven days and delay within 21 days. A written claim suspends the limitation period until the carrier rejects it in writing.
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