4th IRU-LAS-AULT SEMINAR

SESSION IV SECURING COMMERCIAL GOODS

TRANSPORT AND INSURANCE CONTRACTS

Alexandria, 5 November 2012

(c) International Road Transport Union (IRU) 2012

 The CMR Convention: Key instruments to
harmonise contracts for international
carriage of goods by road: Main principles

Alexandria, 5 November 2012

Jean Acri
IRU Special TIR Advisor
Page 2 (c) International Road Transport Union (IRU) 2012
 Why CMR is key?

Without harmonised contractual conditions for

international road transport:
- How and when the contract is concluded?
- What is the form and the nature of the contract?
- Which law will govern the contract?
- Which are the parties respective obligations?
- What procedures to follow in case of delay, or damage,
or non-delivery?
- Which level of indemnity should apply?
- What is the content of transport documents?
Page 3 (c) International Road Transport Union (IRU) 2012
 Why CMR is key?

Without harmonised contractual conditions for

international road transport:
- Road transport operators, shippers and consignees
would not be in a position to measure their commercial /
financial exposure UNPREDICTABILITY
- Difficulty for insurers to assess risk and provide
coverage
- Open door to la carte contracts and legal
uncertainty
- Unclear rules for establishing transport documents

Page 4 (c) International Road Transport Union (IRU) 2012

 International Carriage by Road under the CMR
Objectives of the CMR

to harmonise contractual conditions

to contribute to facilitating the carriage of goods using the
CMR consignment note
to contribute to harmonising competitive conditions
----------------------------------------------------------------------
The texts:
the 1956 CMR
1978 Protocol (SDR)
Additional e-CMR Protocol in 2008 (entered into
force in 2011)

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1. CMR generalities
2. Obligations of the parties under the CMR
3. Delivery under the CMR
4. Conditions and limits of liability under the CMR
5. Handling of claims under the CMR
6. Insurance and CMR

Page 6 (c) International Road Transport Union (IRU) 2012

 CMR generalities

CMR Convention:
55 Contracting Parties
5 LAS Contracting Parties: Applies to every contract for
the international carriage of
- Morocco
goods by road between two
- Tunisia
different countries of which
- Syria at least one is a contracting
- Lebanon country.
- Jordan

Page 7 (c) International Road Transport Union (IRU) 2012

 CMR generalities:
How the CMR fits into the general legal
environment

CMR National
legislation

Contractual area General environment

customs
transport
social
new technologies

Page 8 (c) International Road Transport Union (IRU) 2012

 CMR generalities

Contract between the sender and the carrier for the

international carriage of goods by road for reward

covers successive movements

addresses multimodality: applies to carriage by ferries

and using combined transport for door to door
movements

excludes all contradictory clauses

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 CMR generalities:
The scope of the CMR

Taking the goods over Delivery

Transport

+ the international consignment note

+ incidents en route
+ claims and compensation for Loading/
delay, damage and loss unloading/
charges

National legislation
?

General conditions

Page 10 (c) International Road Transport Union (IRU) 2012

 Obligations of the parties under the CMR

Before taking over the goods

Sender:
packaging Liable for all loss and damage sustained by reason of the
information inaccuracy or inadequacy of certain particulars or documents
(Articles 7 and 11)
documents
dangerous goods (Article 22.1)
Carrier: Checks:
tally number, markings and Presumption of good
numbers on packages condition (Article 8.2)
apparent condition and packaging
the gross weight of the goods and the contents of the packages if requested
by the sender but at his expense (Article 8.3)
Making out the CMR consignment note

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 3 copies:
one for the shipper
one for the consignee
one for the carrier

Signature = proof
of acceptance

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 Obligations of the parties under the CMR

During carriage
Sender:
has a right to dispose of the goods (Article 12)
Carrier:
keeps, delivers or returns the documents provided by the sender
(Article 11)
notifies, in the event of an incident in
particular Article 14
accepts instructions
safeguards the goods
particular case of dangerous goods

Page 13 (c) International Road Transport Union (IRU) 2012

 Delivery under the CMR

No definition of delivery in the CMR

national law

if delivery is prevented the carrier notifies and asks for

instructions (Article 15.1)
immediate unloading (Article 16.2)
sale of the goods (Articles 16.3, 4 and 5)

Page 14 (c) International Road Transport Union (IRU) 2012

 Conditions and limits of liability under the CMR

Fundamental principles of the CMR:

Presumption of liability
(liability for staff and contractors)

Compensation limited

EXCEPT

Page 15 (c) International Road Transport Union (IRU) 2012

 Conditions and limits of liability under the CMR

Article 17: loss, damage and delay

The carrier is liable for:

partial or total loss
damage
delay
which arises between the taking over and delivery of the goods

But he is relieved of his liability if he proves that the loss, damage or

delay was caused by:
a wrongful act or neglect by the claimant
instructions given by the claimant
inherent vice of the goods
circumstances which the carrier could not avoid and the consequences of which he
was unable to prevent (force majeure without unpredictability)

Page 16 (c) International Road Transport Union (IRU) 2012

 Conditions and limits of liability under the CMR

Article 18: loss and damage

The carrier may also attempt to relieve himself of liability if he proves
that the loss or damage could be attributed to a special risk:
use of open vehicles and vehicles not sheeted in accordance with the CMR
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
handling by the sender or the consignee
the nature of certain kinds of goods which exposes them to the risk of rust, breakage
or decay
insufficiency or inadequacy of marks or numbers on the packages
the carriage of livestock
But the claimant may prove the contrary.

That is just a reversal of the burden of proof.

Page 17 (c) International Road Transport Union (IRU) 2012

 Conditions and limits of liability under the CMR

Article 19: delay

exceeding the time-limit agreed
or
exceeding the time it would be reasonable to allow a diligent carrier

Article 20: total loss

thirty days after the expiry of the time-limit agreed

or

sixty days from the time when the carrier took over the goods

Page 18 (c) International Road Transport Union (IRU) 2012

 Conditions and limits of liability under the CMR

Articles 23 and 24: loss and damage

the loss which is compensated is the loss and damage to property
amount: 8.33 SDR per kg of goods lost or damaged unless a higher value has
been declared
reference value: the value of the goods at the place and time at which they were
accepted for carriage

+ - carriage charges
- customs duties
- other charges
in full or in proportion
Article 23.5: delay
the claimant must prove that the delay has caused a loss
compensation limited to the carriage charges

Page 19 (c) International Road Transport Union (IRU) 2012

 Conditions and limits of liability under the CMR

Loss, damage and delay

Higher compensation if:
a special interest in delivery has been declared (Article 26)

No limit or no exclusion of liability (Article 29) if:

wilful misconduct by the carrier

or default equivalent to wilful misconduct

Page 20 (c) International Road Transport Union (IRU) 2012

 Handling of claims under the CMR

Article 30: protection of rights

Loss and damage:

- joint examination at the time of delivery

- (for loss or damage which is apparent) if there is no reservation or report

giving a general indication of the loss or damage, it is presumed that
delivery is in accordance with the consignment note BUT CLAIMS ARE
NOT BARRED

- exception for loss or damage which is not apparent - notification is to be

made in writing within seven days of delivery

Delay:

- written reservations within twenty-one days from the time that the goods
were placed at the disposal of the consignee. OTHERWISE BARRED

Page 21 (c) International Road Transport Union (IRU) 2012

 Handling of claims under the CMR

Article 32
Period of limitation:
in principle: one year
but: three years if there is wilful misconduct or default equivalent to it
Begins to run:
date of delivery (partial loss, damage or delay)
thirty days after the expiry of the time-limit agreed (total loss) or sixty days
after the goods were taken over by the carrier
other cases: three months after the conclusion of the contract
Suspension:
written claim by the claimant
Recommencement of the period of limitation:
written rejection of the claim by the carrier and the return of the documents

Page 22 (c) International Road Transport Union (IRU) 2012

 Handling of claims under the CMR

Articles 31 and 33: competent courts

arbitration tribunal: if the arbitration clause provides that the tribunal
shall apply the CMR

in the absence of a clause specifying competent courts:

courts of the country in which the defendant is resident

or

courts of the country in which the goods were taken over or were to
be delivered

Page 23 (c) International Road Transport Union (IRU) 2012

 Insurance and CMR

CMR through the harmonisation of contractual

conditions facilitates insurance coverage
Insurers can measure the risk they cover
Insurers are not exposed to unknown conditions of
transport
Insurers benefit from harmonised claims
procedures and liability limits
Better insurance conditions and premiums

Page 24 (c) International Road Transport Union (IRU) 2012

www.iru.org

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