Clients of our law firm who run companies that thrive in the transport industry are often alerted to the provisions that the CMR Convention. In a nutshell, it regulates the international carriage of goods by road. This act imposes numerous obligations on carriers and shapes their responsibilities.
Below we explain, among other things:
- Is every carrier subject to its provisions?
- What is the liability of carriers in certain situations?
- When are they obliged to pay compensation?
The CMR Convention and its application - is every carrier subject to it?
The provisions of the Convention apply to contracts for the carriage of goods by road in vehicles for reward. PVehicles are understood to include cars, articulated vehicles, trailers and semi-trailers.
The carriage of goods is subject to the provisions of the Convention when the place where the consignment is accepted for carriage and the place designated for delivery are in two different countries, at least one of which has acceded to the CMR Convention.
The residence or nationality of the party is irrelevant. What is relevant is the element of transport of goods from the territory of one state to that of another. Most European countries have acceded to the Convention, including:
- Poland,
- Germany,
- France,
- Sweden,
- Norway,
- The Netherlands,
- Switzerland or
- Italy.
Therefore, if you are a Polish entrepreneur and are active in the international transport sector, you should read the rest of this article. the provisions of the CMR Convention apply to you.
Carrier's liability for drivers' actions
Under Article 3 of the CMR Convention, a carrier shall be liable for the acts and omissions of his servants and other persons whose services he makes use of for the carriage of goods as for his own acts and omissions.
What does this mean in practice?
The fact that a carrier uses employees or service providers to carry out orders does not exclude its liability - as long as these persons act in the exercise of their functions.
Carrier's liability for entrusted goods
As a general rule, the carrier has a fairly broad liability for the goods entrusted to him. This is because he is liable for its total or partial loss as well as for damage occurring between the acceptance of the goods and their delivery. The carrier is also liable for late delivery. Neither defects in the vehicle nor the fault of the person or employees of the person from whom the vehicle has been hired shall exempt him from liability.
By contrast, the carrier will be relieved of liability if the loss of or damage to the goods occurs as a result of a special danger. The causes of special peril that relieve liability are numerous and are clearly indicated in the provisions of the Convention.
Circumstances exempting the carrier from liability for the goods entrusted
The following are examples of the most common situations in the transport industry whereby the carrier is relieved of its responsibility for the entrusted goods.
- Use of a vehicle that is open and not secured with a tarpaulin, resulting in a particular hazard - the carrier will not be liable if the use of this type of vehicle has been expressly agreed in advance and noted on the consignment note;
- Failure to pack goods adequately - the carrier will be free from liability if the goods entrusted have no packaging due to their natural characteristicsThe result is that they can become lost or damaged;
- Consequences of the properties of the goods - the carrier will not be liable for the consequences of the properties of the goods which may cause them to break, rust, spontaneous spoilage, dryness, leakage, reduction or the action of pests;
- Danger arising from the transport of live animals also exempts the carrier from liability.
In addition, the CMR Convention mentions two more factors exempting the carrier from liability:
- inadequate or defective marking of the marks or numbers on the individual items of the consignment, and
- the handling, loading, stowing or unloading of goods by the consignor or the consignee or by persons acting for their account.
What if the loss or damage to the goods was caused by both factors for which the carrier is responsible and factors for which he is not?
Then his liability shall be limited in relation to the latter, only to the extent that they contributed to the damage. However, it is for the carrier itself to prove that the loss or damage to the goods or the delay in delivery was caused by reasons for which the carrier is not responsible.
Entrusting dangerous goods to a carrier - what does the CMR Convention say about this?
The shipper entrusting hazardous materials for transport is primarily responsible for obligations of an informative nature. In particular, the shipper in relation to the carrier should:
- inform you of the type of danger associated with the goods in question,
- indicate what precautions should be taken.
If the shipper fails to inform the carrier of this in the consignment note, the onus will be on the shipper or consignee to prove that the carrier knew of the dangerous nature of the goods. In this respect, the Convention protects the carrier by indicating that if the carrier had no prior knowledge of the dangerous nature of the goods being transported, the carrier is entitled to:
- discharges,
- damage or
- disposal
dangerous goods anywhere, anytime ...
...and all this without having to pay compensation. What is more, the shipper is liable for all damages and costs arising from entrusting the transport of dangerous goods without complying with the information obligations.
Obligation of the carrier to pay compensation
Finally, it is worth mentioning the principles under which the carrier will be forced to pay compensation.
What if there is a total or partial loss of goods?
In such a situation, the carrier is obliged to pay compensation, the amount of which is calculated as follows based on the value of the goods at the place and time of their acceptance for carriage. The specific value of the goods, on the other hand, is determined according to the exchange price or the current market price. It is also permissible to determine it on the basis of the usual value of goods of the same type and quality.
Attention!
The compensation to be paid by the carrier shall not exceed 8.33 settlement units per kilogram of gross weight of the missing goods.
Goods completely missing
When there is a total loss of goods, the carrier is obliged to return the goods: freight, customs duties and compensation for other expenses related to the carriage of the goods.
Goods partially missing
In the event of partial loss of goods, these costs will be subject to pro rata compensation.
Other problems with the goods during transport
The carrier will not be obliged to pay any other type of compensation or reimburse any other type of expenses.
If the delivery is delayed and the right holder proves that he has suffered damage as a result, the carrier will have to pay compensation, but in an amount that does not exceed the carrier's fee.
Increased compensation will only be claimed from the conductor if either the value of the goods transported is declared in advance or a special interest in the delivery of the goods is demonstrated.
CMR Convention - guidelines every haulier should know. Summary
The above regulations arising from the CMR Convention are only a substitute for the obligations imposed on carriers by national and European legislators. These obligations generate on their part the need to fulfil numerous procedures. They also require a good knowledge of legal regulations and the ability to apply them in practice.
Haulier! Do you feel lost in the maze of transport law regulations and do not know how to deal with complying with all the requirements? Call or write to our law firm! We will be happy to talk and support you in running your business!
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