Introduction
Whether you're an e-commerce giant like Amazon or Cdiscount, a renowned carrier such as DHL, a 3PL/4PL using several carriers, or an independent retailer using Colissimo services: the question of goods transportation is at the heart of your business and ultimately reflects your customer experience. And with transport comes risk: accidents, loss, damage... All of which can impact your sales, your customer service and your brand image.
This is where the CMR Convention comes in, an essential legal framework for international road transport, and therefore for courier services. This comprehensive guide explains the ins and outs of the CMR during transport, including the rules governing compensation and the responsibilities of the various parties involved. Finally, you'll also find out how to protect yourself effectively, thanks in particular to appropriate transport insurance.
What is the CMR Convention?
The CMR Convention, signed in Geneva on May 19, 1956, lays down clear rules for the carriage of goods by road between different countries. It automatically applies to transport between countries that have signed up to it(you can find the list here), guaranteeing uniform legal protection for all parties involved: consignors, carriers and consignees.
CMR compensation: a ceiling to be aware of
The CMR sets a ceiling for compensation in the event of loss or damage to goods. This ceiling is 8.33 Special Drawing Rights (SDR) per kilogram of missing gross weight.
[Link to the IMF website for the current value of the SDR].
Nota Bene: This amount is a ceiling, not a guarantee of full reimbursement. Actual compensation may be lower if the value of the goods is less than this amount.
Responsibilities of each stakeholder
- Shipper: The shipper is responsible for the correct packaging and labeling of the goods, and for providing the necessary transport documents.
- Carrier: The carrier (DHL, FedEx, UPS, Colissimo, Chronopost, GLS, Royal Mail...) is responsible for taking charge of, transporting and delivering the goods on time and in good condition.
- Consignee: The consignee is responsible for receiving the goods and checking their condition on delivery.
In the event of a dispute, it is essential to be able to prove who is responsible for what.
Concrete examples of compensation situations
- Lost parcel: If a parcel is lost in transit, the carrier must compensate the sender for the value of the goods, up to the CMR ceiling, i.e. 8.33 SDR x weight of goods transported.
- Damaged parcel: If a parcel arrives damaged, the recipient may refuse delivery or claim compensation from the sender for the loss in value of the goods. This compensation is always limited to the CMR ceiling. And as seen in the article on transfer of ownership on our blog, the shipper may require clear and explicit reservations on the delivery note.
- Late delivery: In the event of late delivery, it will be necessary to prove that the contract has not been respected and that this delay has caused real prejudice to the sender or recipient.
Supplementary insurance: essential protection
Whether you're a private individual sending a parcel via Royal Mail, or a company using FedEx services for urgent shipments, additional insurance is often recommended to protect you effectively. Be careful, however, that your parcel does not attract attention, and that the insurance is not prominently displayed on your parcel: with Claisy, your insurance is invisible during transit.
Even if the value of your goods is less than 8.33DTS per kilogram, we strongly recommend that you take out additional insurance. This will enable you to benefit from more extensive coverage and, above all, simplified claims management. Before taking out insurance, it is advisable to read the conditions of cover and assumption of liability carefully, as many goods may be excluded from cover.
Benefits of supplementary insurance :
- Higher coverage: You can insure your goods at their actual value, without necessarily taking into account the SDR or weight of your shipment. This means you're fully compensated in the event of loss or damage.
- Coverage of ancillary costs: Supplementary insurance can also cover the costs of transport, storage, customs, etc.
- Simplified claims management: specialist insurers can help you with all the formalities, and help you to obtain rapid compensation.
Claisy: your partner for worry-free risk management
Claisy is an online insurance company with numerous technological solutions (connectors with Shopify, PrestaShop, WMS, etc.) for professionals who ship goods. Whether you're a carrier (DHL, FedEx, GLS...), a logistician or an online retailer, Claisy offers the right cover for you. Claisy helps transport and logistics professionals deal with their problems: we support our partners from start to finish, and you'll receive your compensation within 48 hours.
FAQ : Frequently asked questions about the CMR Convention and compensation
- Does the CMR Convention apply to all types of transport? No, as stated at the beginning of this article, the CMR applies only to international road haulage.
- How is the amount of compensation calculated in the event of loss or damage? The amount of compensation is calculated by multiplying the missing gross weight by the value of the DTS on the day of the loss. Of course, the amount is always limited to the declared value of the goods (an invoice is generally required, except at Claisy).
- What should I do if I have a dispute with the carrier (Colissimo, UPS, GLS, etc.)? Contact your insurer and/or a legal expert for advice and assistance.
Conclusion
The CMR Convention has been helping to organize the international transport of goods by road since the mid-50s, and byJanuary 1,2025 will have brought together 58 countries. It defines and protects the interests of all parties involved in the transport of goods by road. Knowing the rules of compensation, the responsibilities of each party and the importance of supplementary insurance is essential for managing transport risks.
Don't hesitate to contact Claisy to find out more about our insurance solutions and benefit from personalized support.
