CONVENTION ON THE CONTRACT FOR THE INTERNATIONAL CARRIAGE OF GOODS BY ROAD (known as Convention CMR or CMR agreement)

Today I would like to tell you something about the most important agreement that is valid in international road transport about CONVENTION ON THE CONTRACT FOR THE INTERNATIONAL CARRIAGE OF GOODS BY ROAD (known as Convention CMR or CMR agreement)

This Convention was negotiated in Geneva in 1956. It was accepted by our country as a part of our former country Czechoslovak Socialistic Republic at the end of the year 1974 and it was published in ministerial regulation nr. 11/1975.

The Protocol of Convention CMR was signed in Geneva in 1978 which modify article 23 describing compensation of damage. Our national council ratified this Protocol at the end of the year 2007. It was published in Collection of Laws by the Declaration nr. 163/2008

The Convention CMR was added by Additive Protocol in 2008. This supplement to the agreement was concerned about electronic consignment note. This additive protocol was not ratified in our country yet.

That is all from history up to the present time about the Convention CMR.  Come with me to look at the Convention CMR and find out what about it is?

Basic purpose of this Convention (similar like in the most of the multilateral Conventions) is to unify rules in international road transport of the goods and to support development of international trading. The Convention has very important meaning for the carriers and shippers from the practical point of view. Everything in international transport had to be controlled by national laws in case of non existence of this multilateral Convention. Frankly speaking, the man has enough if he has to read laws, regulations and directives in his own mother tongue let alone in foreign language. And one Convention replace tenths others documents.

I would like to underline at this place that cabotage transports are not controlled by international Conventions and rules. Everyone carriers that is providing cabotage transports should know national laws and regulations of the country for doing of the transports at their territory. (Cabotage transpors = national transports done by carrier from the other country. For example: If carrier from Slovakia is doing national/domestic transport in Germany, alternatively said: if the loading place and unloading place are in Germany)

The transport is treated as international transport only in case that the loading place and unloading place are in different countries. The Convention CMR can be applied in international transport only in case if one of the loading or unloading places is in country that is signatory of the Convention CMR.

There are three exceptions when the transport can not be realized by the Convention CMR even if it is international transport.

1. Postal matter transport – transports that are controlled by international postal Convention
2. Mortal remains transport – transport of dead peoples
3. Removal personal effects transport – transport of furniture, home equipment, clothes and home accessories in case of moving people internationally.

The Convention CMR adjusts the rules, discretions, duties and responsibilities of carrier and shipper. It adjusts close-up and realization of transport contracts and also the procedures of claiming damages. It describes what must be written in goods accompanying transport documents. It describes the most important document in international road transport and that is undoubtedly the Consignment note (known also as CMR note). CMR note is official document that has standard form and is usually written in two languages. One of the languages is English or German language and second one is in language of the country where carrier firm domicile is. CMR note has its identification number and the carrier has usually his own CMR notes. CMR note form is possible to buy at the shops where selling forms for business are. Some carriers, logistic and forwarding companies have printed their own CMR notes with the logo of their company.

Every CMR note set has usually 5 and some times 7 self-transcriptase sheets

-         The first RED sheet is given to the sender as a proof that the goods were taken from the sender by carrier.

-         Te second BLUE sheet is given to the consignee that he knows how many of goods he should receive from the carrier.

-         The third GREEN sheet is for the carrier it is the proof that the goods were delivered to the cnee

-         The fourth and the fifth BLACK sheet are for invoicing purposes.

-         The sixth and the seventh BLACK sheet are for customs clearance purposes (mainly in the past) 

The CMR note shall contain the following particulars:

(a) The date of the consignment note and the place at which it is made out (column 21);

(b) The name and address of the sender (1);

(c) The name and address of the carrier (16);

(d) The place and the date of taking over of the goods and the place designated for delivery (4 and 3);

(e) The name and address of the consignee (2);

(f) The description in common use of the nature of the goods and the method of packing, and, in the case of dangerous goods, their generally recognized description (6-9);

(g) The number of packages and their special marks and numbers (6-9);

(h) The gross weight of the goods or their quantity otherwise expressed (11, 12);

(i) Charges relating to the carriage (carriage charges, supplementary charges, customs duties and other charges incurred from the making of the contract to the time of delivery) (19);

(j) The requisite instructions for Customs and other formalities (13);

(k) A statement that the carriage is subject, notwithstanding any clause to the contrary, to the provisions of this Convention.

Where applicable, the consignment note shall also contain the following particulars:

(a) A statement that trans-shipment is not allowed (20);

(b) Then charges which the sender undertakes to pay (15);

(c) The amount of "cash on delivery" charges (14);

(d) A declaration of the value of the goods and the amount representing special interest in delivery (20);

(e) The sender's instructions to the carrier regarding insurance of the goods (20);

(f) The agreed time limit within which the carriage is to be carried out (20);

(g) A list of the documents handed to the carrier (5 or 30). 

(h) The carriers reservations during the loading (18 in English version column 14)

Now I will speak about liability of the Carrier.

The carrier shall be liable for the total or partial loss of the goods and for damage thereto occurring between the time when he takes over the goods and the time of delivery, as well as for any delay in delivery.

The carrier shall, however, be relieved of liability if the loss, damage or delay was caused by the wrongful act or neglect of the claimant, by the instructions of the claimant given otherwise than as the result of a wrongful act or neglect on the part of the carrier, by inherent vice of the goods or through circumstances which the carrier could not avoid and the consequences of which he was unable to prevent.

The carrier shall not be relieved of liability by reason of the defective condition of the vehicle used by him in order to perform the carriage, or by reason of the wrongful act or neglect of the person from whom he may have hired the vehicle or of the agents or servants of the latter.

Subject to article 18, paragraphs 2 to 5, the carrier shall be relieved of liability when the loss or damage arises from the special risks inherent in one more of the following circumstances:

(a) Use of open uncovered vehicles, when their use has been expressly agreed and specified in the consignment note;

(b) The lack of, or defective condition of packing in the case of goods which, by their nature, are liable to wastage or to be damaged when not packed or when not properly packed;

(c) Handling, loading, stowage or unloading of the goods by the sender, the consignee or person acting on behalf of the sender or the consignee;

(d) The nature of certain kinds of goods which particularly exposes them to total or partial loss or to damage, especially through breakage, rust, decay, desiccation, leakage, normal wastage, or the action of moth or vermin;

(f) Insufficiency or inadequacy of marks or numbers on the packages;

(g) The carriage of livestock.

The reservations of the carrier must be written on CMR note in column 18 (on the first RED original sheet of CMR note). It could be quite exactly expressed by using of code consist of number and letter (for example code 3 means that the packaging was damaged before or during the loading, next example code 5c means that the inspection of the number of peaces is not possible because of too many pieces, code 8 means that the goods were loaded soggy. The carrier should contact shipper in case of reservations at the loading place and request the instructions for realization of this transport. My recommendation is that the driver should take the pictures of damaged goods where should be clearly shown the reason of reservations. If the carrier will not record the reservation it is assumed that the goods were loaded without any damage and with the number of pieces that is written in CMR note. 

CMR note from the transport that is already finished should be signed and stamped by sender, carrier and consignee. There can be also notices from the consignee regarding damaged or missing goods. Consignee usually makes also a protocol and photo documentation if this situation occur. This is important also for insurance company for proving of responsibility in case of law-suit.

There are described in other chapters of Convention CMR duties, responsibilities and discretions of the carrier and shipper

Responsibility of the carrier starts from the moment of loading of the goods up to the moment of unloading of the goods by consignee. Carrier is responsible for damage or loss of the goods during the transport or delay. 

The carrier has to check next points during the collection of the goods:

(a) The accuracy of the statements in the consignment note as to the number of packages and their marks and numbers, and

 (b) The apparent condition of the goods and their packaging.

When the sender hands dangerous goods to the carrier, he shall inform the carrier about the exact nature of the danger and also inform him if necessary, what precautions should be taken. If this information has not been entered in the CMR note, the obligation of proving by some other means is on the sender or consignee, that the carrier knew the exact nature of the danger of the transported goods. It is important that this obligation is valid also for the transport of dangerous goods with under limit quantity, when the special ADR equipment and special training of the crew is not needed. 

Hauler can unload, destroy or render harmless the goods of a dangerous nature which, in the circumstance referred above, the he did not know were dangerous, at any time or place without compensation. Further, the sender shall be liable for all expenses, loss or damage arising out of their handing over for carriage or of their carriage.

CMR agreement describes also claiming process and lodge during the execution of contract. There are two main reasons for claims against the haulers: Claims according to the damage or loss of the goods and claims according to the delay in delivery. No compensation shall be payable for delay in delivery unless a reservation has been sent in writing to the carrier, within twenty-one days from the time that the goods were placed at the disposal of the consignee.

If the consignee takes delivery of the goods without duly checking their condition with the carrier or without sending him reservations giving a general indication of the loss or damage, not later than the time of delivery in the case of apparent loss or damage and within seven days of delivery, Sundays and public holidays excepted, in the case of loss or damage which is not apparent, the fact of this taking delivery shall be prima facie, evidence that he has received the goods in the condition described in the consignment note. In the case of loss or damage which is not apparent the reservations referred to shall be made in writing.

When the condition of the goods has been duly checked by the consignee and the carrier, evidence contradicting the result of this checking shall only be admissible in the case of loss or damage which is not apparent and provided that the consignee has duly sent reservations in writing to the carrier within seven days, Sundays and public holidays excepted, from the date of checking. I have never met with claim in the case of loss or damage which was not apparent and was claimed additionally after some time during my longtime experience in transport.

I think that proofs of the haulers responsibility for damage or loss of the goods is doubtable in that case, because the damage or loss of the goods could be caused even before the transport or during the manipulation in warehouse of sender or consignee

A few times I have met with misconception of the shipper that the hauler is responsible for the damage or loss of the goods up to full trade-in value that is not absolutely correct. I would like to recommend insurance of the transported goods in the most cases. By the CMR agreement and his protocol there is defined that the compensation shall not, however, exceed 8.33 XDR (approximately 10 EUR) per kilogram of gross weight short (before it was 25 Golden Francs). This amount is covered by Insurance of responsibility of the hauler also called CMR insurance. In addition, the carriage charges, Customs duties and other charges incurred in respect of the carriage of the goods shall be refunded in full in case of total loss and in proportion to the loss sustained in case of partial loss, but no further damage shall be payable. Higher compensation may only be claimed where the value of the goods or a special interest in delivery has been agreed and declared. Hauler is responsible for full value of the goods in this case. It is highly recommended to hauler to make insurance for full value of the goods in this case. Very important it is for light-weight and very expensive goods.

In the case of delay if the claimant proves that damage has resulted there from the carrier shall pay compensation for such damage not exceeding the carriage charges. Practically we can meet also with the request for compensation for shutdown of production mainly in the transports for automotive customers. Some insurance companies are offering insurance products that are cowering also these risks. By my opinion this is over the frame of CMR agreement.

There are other more or less important parts of CMR agreement but I have described the parts from my own experiences that I met up today.

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