What is the CMR consignment note?
The CMR Convention (Convention on the Contract for the International Carriage of Goods by Road) was signed in Geneva in 1956 and governs road transport where the place of loading and unloading are located in two different countries, at least one of which is a signatory to the convention.
The physical document (or electronic, e-CMR) proves the receipt of the goods by the carrier in the condition described by the sender. The signature and stamp of the consignee upon delivery (without reservations) confirm the successful conclusion of the transport contract.
The 3 original copies:
- Red copy: Remains with the sender after loading.
- Blue copy: Accompany the goods and is handed over to the consignee.
- Green copy: Remains with the carrier, serving as proof of delivery and the basis for invoicing the service.
What Does CMR Insurance Cover?
The biggest confusion in the industry is the equating of CMR insurance with CASCO insurance for cargo. CMR insurance protects the carrier against financial liability to the owner of the cargo, within the strict limits of the Convention.
If the cargo is destroyed or stolen due to the proven fault of the carrier, the compensation is calculated on the weight, not on the invoice value. The limit is 8.33 SDR (Special Drawing Rights) per kilogram, i.e. approximately 10-11 Euro/kg.
200 kg x ~10 EUR = 2,000 EUR.
If a 200 kg pallet with IT equipment worth 30,000 EUR is destroyed in an accident, CMR insurance will pay a maximum of:
The difference of 28,000 EUR is the loss of the owner of the cargo, unless he has taken out additional Cargo insurance.
Major Exclusions: When CMR Doesn't Pay
The carrier is exempt from liability (and CMR insurance does not pay) if the damage was caused by:The carrier is exempt from liability (and CMR insurance does not pay) if the damage was caused by:
| CAUSE OF DAMAGE | EXPLANATION |
|---|---|
| Defective packaging | The goods were not properly protected by the sender for the rigors of road transport. |
| Upload/Download | If the operations were performed by the sender/recipient, and the damage occurred during this time. |
| Force majeure | Unforeseen and unavoidable events (natural disasters, war, strikes). |
| Theft from unguarded parking lots | If the driver stops in an unorganized/unsecured parking lot, the insurer may refuse payment. |
The Crystal Logistics Services approach
At Crystal Logistics Services, we ensure that all transport documents are completed flawlessly, protecting the interests of our clients. Furthermore, we analyze the value of the cargo even at the quotation stage. If the value exceeds the limit of 8.33 SDR/kg, we recommend and facilitate the issuance of Cargo (All Risks) insurance, eliminating the risk of major financial losses in the event of an incident.