What Is CMR? The International Road Freight Contract and Carrier Liability
CMR (Convention relative au contrat de transport international de marchandises par route) is an international convention — to which Türkiye is also a party — that governs the paid international carriage of goods by road where at least one of the place of loading or the place of delivery is in a country party to the convention; as a rule, it limits the carrier's liability for loss of or damage to the goods to 8.33 SDR/kg. For value above this ceiling, what is needed is not CMR insurance, which secures the carrier's legal liability, but goods-in-transit insurance (cargo insurance), which covers the full value of the goods.
CMR is an international convention originating in Geneva in 1956 — to which Türkiye is also a party — that sets out the rights and obligations of the parties in the international carriage of goods by road (Convention relative au contrat de transport international de marchandises par route). The convention governs, within certain limits, how the transport contract is formed, the function of the CMR consignment note, and the carrier's liability for loss of, damage to, or delay in delivering the goods. This guide explains what CMR is, the difference between the CMR consignment note and the ocean bill of lading, the 8.33 SDR/kg compensation limit, and the often-confused distinction between CMR insurance and goods-in-transit insurance.
What Is CMR? The International Road Freight Contract
CMR — in full, the "Convention relative au contrat de transport international de marchandises par route" (the Convention on the Contract for the International Carriage of Goods by Road) — is an international convention signed in Geneva in 1956 that governs the international carriage of goods by road. Türkiye is a party to this convention.
CMR governs, within certain limits, how the transport contract is formed, the function of the consignment note, and the carrier's liability arising from loss of, damage to, or delay of the goods. Its purpose is to standardize the rights and obligations of the parties in international road carriage within a common framework.
In this way, in road shipments between different countries, the relationship between the consignor, the carrier, and the consignee is largely subject to the same rules; this provides predictability regarding compensation, notice of claim, and liability.
The CMR Consignment Note and How It Differs From a Bill of Lading
The CMR consignment note (CMR waybill / consignment note) is proof that the transport contract has been made and that the goods have been handed over to the carrier. In practice, it is typically drawn up in three copies: one remains with the consignor, one with the consignee, and one with the carrier.
The CMR consignment note is not a document of title; it cannot be endorsed and does not represent ownership of the goods. That is, the transfer of the note does not transfer ownership of the goods; the note serves only as proof of the contract and of delivery.
This is the fundamental difference that distinguishes the CMR consignment note from the ocean bill of lading (Bill of Lading, B/L). The ocean bill of lading is, in most cases, a document of title, so it can represent ownership of the goods and can be endorsed; the CMR consignment note, by contrast, carries no such function and remains a means of proof.
Carrier Liability and the 8.33 SDR/kg Compensation Limit
Under CMR, when the carrier is liable for loss of or damage to the goods, the compensation it will pay is, as a rule, limited to 8.33 SDR/kg (per kilogram of gross weight short). This places an upper limit (a ceiling) on the carrier's liability.
The SDR here is the IMF's Special Drawing Right. Because the value of the SDR against currencies changes over time, the current equivalent of the compensation per kilogram is calculated as of the date of the specific incident; this guide does not provide a fixed exchange rate or amount. In the event of delay, the loss the carrier will pay cannot, as a rule, exceed the amount of the freight (the transport charge).
The carrier may not be liable in every case. In circumstances such as force majeure, the fault of the consignor or consignee, an inherent defect of the goods (latent defect), or inadequate packaging, the carrier's liability may be removed or reduced. Which limits and exceptions apply in a specific case must be assessed according to the circumstances of that case.
When Does CMR Apply?
CMR applies to paid (for-reward) international carriage of goods by road where at least one of the place of loading or the place of delivery is in a country party to CMR. In other words, the essential requirement is that the carriage be international in nature and for reward.
Domestic (internal) shipments do not fall within the scope of CMR. Road shipments that begin and end within the borders of a single country are subject to the relevant national legislation rather than CMR.
Since Türkiye is a party to the convention, international road carriage of goods departing from or arriving in Türkiye is typically treated as falling within the scope of CMR. This allows the parties to rely on CMR rules regarding liability, compensation, and notice of claim.
The Difference Between CMR Insurance and Goods-in-Transit Insurance
CMR insurance is insurance that secures the carrier's legal liability under CMR. Its scope is within the same framework as the carrier's liability, that is, limited to the 8.33 SDR/kg limit. Accordingly, CMR insurance protects not the full value of the goods but the carrier's limited liability.
Goods-in-transit insurance (cargo insurance), on the other hand, is insurance that the cargo owner takes out to secure the full value of the goods. This insurance can operate independently of whether the carrier is at fault and is not bound by the 8.33 SDR/kg cap.
Confusing the two concepts creates a significant risk for the cargo owner: if goods with a high value per kilogram are damaged or lost, the carrier's 8.33 SDR/kg cap under CMR may not be enough to cover the actual loss. For this reason, cargo owners who want to secure the full value of their goods are advised to take out goods-in-transit insurance in addition to CMR liability.
CMR Coverage in Forwardie Road Shipments
Forwardie's road shipments fall within the scope of the CMR Convention; this means that carrier liability operates within the framework of the CMR rules and limits explained above.
For cargo owners who want to secure the full value of their goods, optional extended goods-in-transit insurance that covers the amount above the CMR limit is also offered upon request. In this way, the gap between the 8.33 SDR/kg cap and the actual value of the goods can be addressed with separate coverage.
Which coverage is sufficient for your shipment depends on the value, weight, and risk of the goods. Making this assessment before the shipment reduces the risk of encountering unexpected gaps in the event of damage or loss.
CMR Carrier Liability — Cargo (Goods-in-Transit) Insurance
| CMR Carrier Liability | Cargo (Goods-in-Transit) Insurance |
|---|
| Who it protects / who takes it out | Concerns the carrier's legal liability; the carrier secures its liability under CMR through CMR insurance. The protection is carrier-focused. | The cargo owner (consignor or consignee) takes it out to protect their own goods. The protection is aimed directly at the owner of the goods. |
| Scope / compensation limit | The carrier's liability is, as a rule, limited to 8.33 SDR/kg (per kilogram of gross weight short); in the event of delay, the loss cannot exceed the amount of the freight. CMR insurance is likewise limited to this cap. | Can be structured, according to the agreed terms, to secure the full value of the goods; it is not bound by the 8.33 SDR/kg ceiling. |
| What it covers | Covers the compensation the carrier is obliged to pay in cases where it is at fault or liable. In situations where the carrier is relieved of liability, no payment may be made. | When a risk covered by the policy materializes, it can cover the loss suffered by the goods within the terms of the policy, regardless of whether the carrier is at fault. |
| When it comes into play | Comes into play when the carrier can be held liable under CMR for loss, damage, or delay of the goods. | Comes into play when the risks defined in the policy (damage, loss, etc.) materialize; it can cover the actual loss of the goods even in cases where the carrier is not liable or its liability remains limited by the cap. |
| Cost / who bears the premium | The CMR insurance premium is borne by the carrier and is part of the carrier's operating cost. | The premium is borne by the cargo owner; it is assumed by the cargo owner according to the value and risk of the goods. |
| When it is sufficient | May be sufficient in practice when the goods' value per kilogram is low and the 8.33 SDR/kg cap is enough to cover the actual loss. | Necessary when the goods' value per kilogram is high (for example, electronics, machinery, high-value products) or when full-value coverage is desired; this insurance covers the amount above the CMR cap. |
| Common confusion | CMR insurance does not mean 'I insured the goods for their full value'; it only secures the carrier's limited legal liability. | Goods-in-transit insurance protects the goods themselves, independently of the carrier's liability; it should be regarded not as a replacement for CMR insurance but as a complement to it. |
Step by step
- Check the goods and packaging at the time of delivery: When the goods are delivered to you, check the packages, the packaging, and the number of packages. Try to identify any visible damage, wetting, crushing, or shortage while the carrier is still there, because it is essential that visible damage be reported at the time of delivery.
- Report visible damage and shortage in writing at the time of delivery: If there is visible damage or shortage, record it in writing at the time of delivery; where possible, add a reservation to the CMR consignment note or to a delivery report. Leaving a written and dated record rather than an oral notice is important for the subsequent compensation process.
- Give written notice of latent damage within the time limit: For latent damage not noticed at the time of delivery, give written notice typically within 7 days of the date of delivery. Since the exact period may vary depending on the specific case and the applicable rules, act without delaying this period.
- Document the damage: Take photographs of the damaged goods and packaging; gather together the delivery report, the CMR consignment note, the invoice, and the weight/package details. These documents are needed to establish both the nature of the damage and the weight to be used as the basis for calculating compensation.
- Inform the carrier and the insurer and submit your claim in writing: Notify the carrier and, if applicable, the relevant insurer (CMR insurance and/or goods-in-transit insurance) of the situation, and submit your compensation claim in writing together with the documents. Which coverage will come into play is determined according to the nature of the damage and the scope of the policy.
- Watch the limitation period and obtain legal/policy confirmation: The limitation period for filing a lawsuit is generally 1 year; in cases of gross negligence or willful misconduct, this period can extend to 3 years. For the exact application of the time limits and your rights to your specific case, obtain confirmation from a lawyer, and for the policy terms from your insurer; act early so as not to miss the deadline.
Frequently Asked Questions
What is CMR?
CMR — in full, the "Convention relative au contrat de transport international de marchandises par route" (the Convention on the Contract for the International Carriage of Goods by Road) — is an international convention originating in Geneva in 1956. It governs the rights and obligations of the parties in the international carriage of goods by road; Türkiye is also a party to this convention.
Is the CMR consignment note the same as an ocean bill of lading (B/L)?
No. The CMR consignment note (CMR waybill) is proof of the transport contract and that the goods have been handed over to the carrier; it is not a document of title, cannot be endorsed, and does not represent ownership of the goods. The ocean bill of lading, on the other hand, is in most cases a document of title, so it can represent ownership of the goods and can be endorsed. That is the fundamental difference.
What is the carrier's liability limit under CMR?
For loss of or damage to the goods, compensation is, as a rule, limited to 8.33 SDR/kg (per kilogram of gross weight short). In the event of delay, the loss cannot, as a rule, exceed the amount of the freight (the transport charge). The SDR is the IMF's Special Drawing Right, and since its value changes over time, the current equivalent is calculated as of the date of the specific incident.
Does CMR insurance cover the full value of my goods?
No. CMR insurance secures the carrier's legal liability under CMR and is limited to the 8.33 SDR/kg limit. To secure the full value of the goods, the cargo owner is advised to also take out goods-in-transit insurance (cargo insurance); this difference is especially important for goods with a high value per kilogram.
To which shipments does CMR apply? Are domestic shipments within scope?
CMR applies to paid international carriage of goods by road where at least one of the place of loading or the place of delivery is in a country party to CMR. Domestic (internal) shipments do not fall within the scope of CMR. Since Türkiye is a party, international road shipments departing from or arriving in Türkiye are typically treated as within scope.
When must I give notice in the event of damage or loss, and what is the limitation period?
Visible damage must be reported in writing at the time of delivery, and latent damage typically within 7 days of the date of delivery. The limitation period for filing a lawsuit is generally 1 year; in cases of gross negligence or willful misconduct, it can extend to 3 years. Since these periods may vary depending on the specific case, it is advisable to have the exact situation confirmed through a lawyer and through the policy terms.
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