FCA authorised · FRN 724952 0117 325 0027Quote & buy →
Haulage and goods in transit
Under the CMR Convention, a road carrier on an international journey is liable for loss, damage and delay, usually capped at 8.33 Special Drawing Rights per kilogram of gross weight. It matters because the cap can be lost for wilful misconduct, and the Convention overrides contract terms that try to reduce it.
Part of: Haulage insurance
In short
The CMR Convention, given force of law in the UK by the Carriage of Goods by Road Act 1965, governs contracts for carrying goods by road for reward between two countries. The carrier is liable for loss, damage and delay from taking over to delivery, subject to defences, with compensation capped at 8.33 SDR per kilogram of gross weight plus carriage charges and duties. The cap falls away for wilful misconduct, contracting out is void, and claims run to short notice periods and a one-year limitation. Hauliers usually insure CMR liability as part of goods in transit cover.
The Convention on the Contract for the International Carriage of Goods by Road (CMR) has the force of law in the UK through the Carriage of Goods by Road Act 1965. Under Article 1 it applies to every contract for the carriage of goods by road in vehicles for reward where the place of taking over and the place designated for delivery are in two different countries, at least one of which is a contracting country, whatever the residence or nationality of the parties.
Article 2 extends it to journeys where the loaded vehicle is carried over part of the route by sea, rail, inland waterway or air and the goods are not unloaded from it. A trailer that travels from the Midlands to Lyon by ferry is usually a CMR movement for the whole journey. A purely domestic UK journey is not; there, liability depends on your conditions of carriage and your goods in transit cover.
Under Article 17 the carrier is liable for total or partial loss of the goods, and for damage, occurring between taking over the goods and delivery, as well as for delay in delivery. The starting point is liability; the carrier then has to bring itself within one of the Convention's defences.
The carrier is relieved of liability where the loss, damage or delay was caused by the claimant's wrongful act or neglect, by the claimant's instructions, by inherent vice of the goods, or through circumstances the carrier could not avoid and whose consequences it could not prevent. Article 17(4) adds special risks, including:
Whether a theft was a circumstance the carrier could not avoid depends on the facts, including where and how the vehicle was left, which is why security matters so much for CMR carriers. See load theft and cargo crime insurance.
Article 23 values lost goods at the place and time they were accepted for carriage, by commodity exchange price, current market price or the normal value of goods of the same kind and quality. Compensation cannot exceed 8.33 units of account per kilogram of gross weight short. The unit of account is the Special Drawing Right (SDR) defined by the International Monetary Fund, converted at the date of judgment or a date the parties agree. Carriage charges, customs duties and other charges for the carriage are refunded on top, in full for a total loss and proportionately for a partial loss.
| Illustrative load | Figure |
|---|---|
| Gross weight lost | 10,000kg |
| CMR cap | 83,300 SDR (10,000 × 8.33) |
| Sterling equivalent | 83,300 SDR converted at the IMF rate on the date of judgment or the date the parties agree |
| Plus | Carriage charges and duties for the lost goods |
The cap is a maximum: if the goods are worth less, the lower value applies. The sender can raise the limit by declaring a higher value in the consignment note against an agreed surcharge (Article 24), or by declaring a special interest in delivery (Article 26).
Under Article 29, the carrier cannot rely on the provisions that exclude or limit its liability, or shift the burden of proof, if the damage was caused by its wilful misconduct or by default that the court hearing the case treats as equivalent. The same applies to misconduct by the carrier's agents, employees or any other persons it uses to perform the carriage, acting within the scope of their employment.
That matters for insurance. A carrier facing an uncapped claim relies on its policy limit, and a policy may have its own conditions on driver conduct, security and subcontractors. Illustrative: a subcontracted driver leaves a loaded trailer overnight in a lay-by after being told to use a secure site, and it is stolen. The customer may argue wilful misconduct to escape the per kilo cap, so the main carrier's exposure and its policy terms both come into play.
CMR claims run to short deadlines set out in Chapter V:
| Situation | Rule |
|---|---|
| Apparent loss or damage | If the consignee takes delivery without checking or sending reservations, that is prima facie evidence the goods were received as described |
| Loss or damage not apparent | Written reservations within seven days of delivery, Sundays and public holidays excepted |
| Delay | Written reservation within 21 days of the goods being placed at the consignee's disposal |
| Bringing proceedings | One year, or three years for wilful misconduct or equivalent default |
Under Article 41 any stipulation that directly or indirectly derogates from the Convention is null and void, so a carrier cannot contract out of these rules for a CMR movement.
CMR liability is usually insured as an extension of a goods in transit or carrier's liability policy, or under a separate CMR wording. Points commonly worth checking:
A forwarder that contracts to carry, rather than just to arrange carriage, can face carrier liability depending on the contract; see freight forwarder liability insurance. Goods moving mainly by sea or air sit better under marine cargo insurance, and owners wanting full value should consider their own cargo insurance. Importers and exporters can read our importer and exporter insurance guide.
Apex arranges haulage insurance and goods in transit cover, including CMR liability for international hauliers. A broker reads each enquiry and comes back with options, with no fee for a quote, and cover is subject to the insurer's acceptance and the policy terms. To quote we need your business activities, turnover, location and claims history, plus the countries and routes you run, typical load weights and values, how you use subcontractors and your operator licence type.
Under Article 23 of the CMR Convention, compensation for lost or damaged goods cannot exceed 8.33 Special Drawing Rights per kilogram of gross weight short, plus a refund of carriage charges and duties. The sterling value moves with the SDR exchange rate. The cap does not apply where the loss was caused by wilful misconduct.
No. CMR applies where the place of taking over and the place of delivery are in two different countries, at least one a contracting country. A journey that starts and ends in the UK is governed by the contract and the haulier's conditions of carriage instead.
For loss or damage that is not apparent, written reservations must reach the carrier within seven days of delivery, excluding Sundays and public holidays. Delay claims need a written reservation within 21 days. Court proceedings must generally start within one year, or three years where wilful misconduct is involved.
No. Article 41 makes any stipulation that directly or indirectly derogates from the Convention null and void. The sender can, however, agree to pay a surcharge to declare a higher value or a special interest in delivery in the consignment note, which raises the carrier's exposure.
Not always. Some goods in transit policies are limited to UK journeys. International hauliers usually need CMR liability expressly included, with territorial limits covering their routes and a per vehicle limit that reflects the CMR cap on their heaviest loads.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
