A container of Australian wool tops arrives in Hamburg, travels by road to a textile factory in Łódź, Poland, and is found damaged on arrival. The Polish buyer looks at the road carrier's terms and conditions and sees a liability limit of €100 per kilogram. The carrier says the consignment note was signed on delivery. The exporter's insurer says the claim is out of time.
All of these outcomes are governed — or could have been avoided — by a treaty signed in Geneva in 1956 that neither the buyer nor the seller had thought to mention in their contract: the Convention on the Contract for the International Carriage of Goods by Road, universally known as the CMR.
What the CMR is and where it applies
The CMR is a European-origin international convention that establishes uniform rules for road freight contracts across national borders. It applies automatically to any contract for the carriage of goods by road in vehicles — that is, by truck — where the place of taking over the goods and the place of delivery are in different countries, and at least one of those countries is a contracting party.
The list of contracting parties includes virtually all of Europe, the United Kingdom, the countries of the former Soviet Union, Morocco, Tunisia, Iran, and others. Goods moving by road between any two contracting states — including in transit — are governed by the CMR, regardless of what the contract says.
Why Australian traders need to know this
Australian goods moving to or from Europe often complete their journey by road. An FCL shipment from Sydney to a warehouse in Belgium clears customs at the port of Antwerp, is de-vanned, and moves the final 30 kilometres by truck. That truck leg is governed by the CMR.
More commonly, Australian goods are sold to European buyers on Incoterms that transfer risk before or at the port. But if an Australian exporter is selling on DAP or DDP terms — under which they remain responsible for delivery to the named place — the road leg inside Europe is their problem too.
The consignment note
The CMR consignment note is the document that governs the road carriage contract. It is not a document of title — it does not need to be produced to claim the goods — but it is critical evidence of the condition of the goods at the time of loading.
If the carrier does not note any reservations on the consignment note at the time of taking over the goods, the note is prima facie evidence that the goods were received in good condition. If goods arrive damaged, a carrier who signed an uncaveated note faces a difficult argument.
The practical lesson: inspect outgoing goods before the driver signs, and ensure any pre-existing damage is noted on the consignment note before departure.
Liability limits and time limits
The CMR caps carrier liability at 8.33 Special Drawing Rights per kilogram — approximately AUD 16–17 per kilogram at current rates. For a shipment of electronics or pharmaceuticals, this is substantially below replacement value.
For partial loss or damage that is apparent: written notice must be given to the carrier at the time of delivery, or within 7 days for non-apparent damage. Miss the 7-day notice and the claim against the carrier is extinguished, regardless of the merits.
For loss or damage: legal proceedings must be commenced within 1 year. For cases involving wilful misconduct: 3 years.
Practical steps
If you export goods that travel by road within Europe or between CMR countries: include a reference to the CMR in your contracts of sale and know which party bears the road freight risk under your chosen Incoterms. Ensure your freight forwarder uses a proper CMR consignment note. Inspect goods before loading and ensure any damage is noted. Notify the carrier in writing within 7 days of any non-apparent damage. And buy cargo insurance that covers the road leg and bridges the CMR liability cap.
How the CMR Convention interacts with sea, rail and air legs under a single door-to-door contract is covered in Multimodal Transport: Moving Goods Door to Door, Book 8 of the International Trade and Transport Law Library. See the Library.